Apple has announced that it will be raising the price of apps and in-app purchases in Turkey, Saudi Arabia, Mexico and Chile due to tax changes.
These countries have had the following tax changes implemented:
- Turkey- a new tax for digital services of 7.5 percent in addition to the VAT of 18 percent.
- Saudi Arabia- Increase of VAT from 5 percent to 15 percent.
- Mexico- a new VAT of 16 percent.
- Chile- a new VAT of 19 percent.
- Developers are notified that their App Store sales proceeds will be adjusted accordingly and depending on the tax-exclusive price revenue.
- Proceeds will also change in countries like the UK, Italy, France, and Germany, albeit without the change in App Store pricing.
- United Kingdom- A new tax for digital services at 2 percent in addition to the VAT of 20 percent.
- Italy- A new tax for digital services at 3 percent in addition to the VAT of 22 percent.
- France- A new tax for digital services at 3 percent in addition to the VAT of 22 percent.
- Germany- A reduction of VAT from 19 percent to 16 percent.