Apple to change App Store prices in some regions
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Apple is bumping up prices in the App Store in some regions, the company announced on Wednesday. Citing taxes and foreign exchange rate changes, Apple says that apps will become more expensive in the following regions:
- Bahrain: Increase of value-added tax from 5% to 10%
- Ukraine: New value-added tax of 20%
- Zimbabwe: New digital services tax of 5%
Furthermore, there are some changes that involve the proceeds for developers. Prices will remain unchanged in the following regions but developers’ proceeds will be adjusted to account for some tax changes
- The Bahamas: Decrease of value-added tax from 12% to 10%
- Oman: New value-added tax of 5%
- Tajikistan: Decrease of value-added tax from 18% to 15%
Finally, three other regions will be subject to changes, again this involves the proceeds that developers receive from the App Store.
- 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
What does it mean for you?
If you live outside the aforementioned regions – absolutely nothing. Otherwise, expect prices of apps to go up if you live in Ukraine, Bahrain, or Zimbabwe. As for the other six countries, it would be up to the developers.
Some might choose to bump up the prices in order to keep the same level of proceeds from the App Store, while others might leave their app prices alone. Apple leaves the choice to the developers with the following statement:
“You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to preserve prices for existing subscribers.”
The changes are expected to go into effect in the following days. When this happens, the Pricing and Availability section of My Apps will also be updated.
Questions & Answers
Q.Which countries will see App Store prices increase for consumers?
Which countries will see App Store prices increase for consumers?
Consumers in Ukraine, Bahrain, and Zimbabwe can expect app prices to go up. These increases are due to new or increased taxes in those regions, such as VAT or digital services tax.
Q.Will developers' proceeds change in all affected regions?
Will developers' proceeds change in all affected regions?
Yes, developer proceeds will be adjusted in all nine specified regions. In some cases, like The Bahamas or Oman, proceeds are affected by tax changes even if consumer prices remain stable.
Q.When will these App Store price and proceed changes take effect?
When will these App Store price and proceed changes take effect?
The changes are expected to go into effect in the following days. The Pricing and Availability section of My Apps will be updated once these adjustments are live.
Q.Do developers have control over their app pricing in regions where proceeds are adjusted?
Do developers have control over their app pricing in regions where proceeds are adjusted?
Yes, developers can change the price of their apps and in-app purchases at any time using App Store Connect. They can also choose to preserve prices for existing subscribers.
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