Apple has announced that it is making changes to pricing for apps listed in the App Store and in-app purchases. The Cupertino, California-based tech giant that trades in 44 currencies across 175 iOS app storefronts has made price adjustments to adjust for fluctuating exchange rates and tax policy changes in certain countries where the company operates.
According to a blog post from Apple, on February 13, 2023, the prices of apps and in-app purchases on the App Store, excluding auto-renewing subscriptions, will increase in Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the United States. United Kingdom. The iPhone maker will also cut prices in Uzbekistan to reflect the reduction of VAT rates in the country from 15 percent to 12 percent.
In Ireland, the prices of Apple’s App Store and in-app purchases for electronic newspapers and magazines will reflect a reduction in VAT rates from 9 percent to 0 percent. A similar reduction in the tax rate can be seen in Luxembourg, from 17 percent to 16 percent, which will be reflected in Apple’s latest prices in the country, the company confirmed.
Meanwhile, the increase in the tax on goods and services in Singapore from 7 percent to 9 percent has led to an increase in prices in the country’s App Store. Also in Zimbabwe, users will see a price increase with value added tax rising from 14.5 percent to 15 percent.
At the end of January, revenue will be raised for local developers selling in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand and Uzbekistan, the company added in the blog post.
The Cupertino, California-based tech giant noted that it will estimate and remove taxes based on the tax category information users provided before calculating the commission, with Schedule B of the Paid Applications Agreement reflecting this change.
Apple had announced last month that it will introduce 700 new price points for developers and tools to help them set prices in different countries. The new price points were rolled out as part of an overhaul of the storefront, which the company says is “the most comprehensive upgrade” since the launch of the App Store in 2008.