Apple is going to jack up the prices for apps and in-app purchases (excluding auto-renewable subscriptions) in some countries in the next few days. However, the proceeds will be adjusted accordingly and will be calculated based on the tax-exclusive price, said Apple in a news post on its website.
The tech giant has cited the digital taxes and exchange rates for the move. The App Store apps are going to get costlier in Bahrain, Ukraine and Zimbabwe, with the VAT in these countries (in that order) upped by 5 per cent, 20 per cent and 5 per cent, respectively.
While the above countries will see price hikes in the apps on the App Store, there are some countries where the prices will not increase but the “proceeds will be adjusted to reflect the following tax changes.”
In The Bahamas, the value-added tax will be decreased from 12% to 10%, Oman will get a value-added tax of 5% and Tajikistan will see value-added tax being decreased from 18% to 15%.
Apple also shared the upcoming rules for Austria, Latvia and Romania which are as follows.
“Austria: Value-added tax rate reversion to 10% after temporary decrease to 5% for qualifying e-books and audiobooks
Latvia: Value-added tax rate decrease from 21% to 5% for qualifying e-books and e-publications
Romania: Value-added tax rate decrease from 19% to 5% for qualifying e-books, audiobooks, and e-publications”