Apple will begin introducing price increases for in-app purchases made through the App Store from July 25th 2023.
App developers and consumers in four specific markets, including Nigeria, Egypt, Tanzania, and Turkey, would be impacted by the price changes.
Apple mentioned the implementation of Value Added Tax (VAT) and an increase in taxes in the affected countries as the reasons for the adjustments, which suggests that the prices will increase even though it did not specify whether it would be an upward or downward adjustment.
Business Insider reported that the corporation claims that pricing in the impacted nations are being revised to reflect recent changes in tax laws and foreign exchange rates.
According to Apple, Tanzania had implemented an 18% VAT plus a 2% digital tax, while Egypt had instituted a 14% VAT. It was also mentioned that Turkey had raised its VAT from 18% to 20%.
“The App Store’s commerce and payments system was built to empower you to conveniently set up and sell your products and services on a global scale in 44 currencies across 175 storefronts. When tax regulations or foreign exchange rates change, we sometimes need to update prices on the App Store in certain regions and/or adjust your proceeds,” a statement by Apple read.
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“These updates are done using publicly available exchange rate information from financial data providers to help ensure prices for apps and in‑app purchases stay equalized across all storefronts.
On July 25, pricing for apps and in‑app purchases (excluding auto-renewable subscriptions) will be updated for the Egypt, Nigeria, Tanzania, and Turkey storefronts,” the statement further stated.
The 2021 Finance Act specifies that any offshore companies operating in Nigeria that offer digital services to local clients must pay a 6% tax on their revenue.
This includes things like apps, high-frequency trading, electronic data storage, and internet advertising.
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“If you’ve selected Egypt, Nigeria, or Tanzania, as the base storefront for your app or in-app purchase (excluding auto-renewable subscriptions), the price won’t change on that storefront. Prices on other storefronts will be updated to maintain equalization with your chosen base price,” added the company’s statement.
