App Store Gets Global Tax Overhaul: New Rates and Rules for Developers

Apple Announces App Store Tax and Pricing Updates in Several Countries

Apple has announced changes to the tax and pricing structure for the App Store and other digital storefronts across multiple markets, with some updates taking effect immediately and others rolling out over the coming weeks and months.

Immediate Changes (February)

• Azerbaijan: Introduction of 18% VAT.
• Peru: Introduction of 18% VAT.
• Slovakia: Standard VAT rate increased from 20% to 23%, and a new reduced VAT rate of 5% for ebooks.
• Estonia: Reduced VAT rate for news publications, magazines, and other periodicals increased from 5% to 9%.
• Finland: Reduced VAT rate for ebooks increased from 10% to 14%.

Upcoming Changes (February)

• Further tax and pricing updates will be implemented in Azerbaijan and Peru later this month.

These changes will affect the pricing of apps and In-App Purchases. If developers have not selected Azerbaijan or Peru as the base for their app or In-App Purchase, prices will be adjusted to reflect the new VAT rates. However, if these countries are selected as the base, prices will remain unchanged.

Japan (April)

• As a result of changes in Japanese tax regulations, Apple has been designated as a Specified Platform Operator by the Japan tax authority. From April 1, all paid apps and In-App Purchases sold by non-Japan-based developers on the App Store in Japan will be subject to a 10% Japanese consumption tax (JCT), which Apple will collect and remit to the National Tax Agency JAPAN.

Developers can find more details on these changes in an entry provided by Apple.