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App Store Tax and Price Updates
As of August 21, changes to tax regulations and foreign exchange rates have necessitated modifications to proceeds from app and In-App Purchase sales in several regions [[1]]. These adjustments utilize publicly available exchange rate details to maintain consistent pricing across storefronts.
Here’s a breakdown of the updates:
Brazil: A 3.5% Tax on Financial Operations (IOF) is now applied [[1]].
Canada: The Digital Services Tax (DST) is no longer applicable [[1]].
Estonia: The value-Added Tax (VAT) rate has increased from 22% to 24% [[1]]. Romania: VAT rate increased from 19% to 21%, and the reduced VAT rate for news, magazines, books, and audiobooks increased from 5% to 11% [[1]].
The Philippines: A 12% VAT has been introduced for developers based outside of the Philippines [[1]].
Vietnam: Several changes apply:
Organizations outside Vietnam: VAT rate increased from 5% to 10% [[1]].
Individual developers outside Vietnam: 5% Personal income Tax (PIT) replaces corporate Income Tax (CIT), and the reduced VAT rate for news, magazines, and books is no longer applicable [[1]].
Organizations in vietnam: Apple will no longer remit Foreign Contractor Tax (FCT) on sales to end customers, but a 5% FCT will be applied to Apple’s commission [[1]].
individual developers in Vietnam: 2% PIT replaces CIT,and a 5% FCT will be applied to Apple’s commission. The reduced VAT rate for news, magazines, and books is no longer applicable [[1]].
Upcoming Price Updates (September 8):
Pricing for apps and In-App Purchases will be updated for the Philippines and Vietnam if you haven’t designated one of these as your base storefront [[1]]. These updates account for the VAT introductions and changes mentioned above.
If you have selected the Philippines or Vietnam as your base storefront, prices will remain unchanged. Other storefronts will be adjusted to maintain price equalization based on your chosen base price.
Auto-renewable subscriptions and manually priced In-App Purchases will not be affected by these changes [[1]].
You can view these upcoming price changes in App Store Connect: [[1]]. You can also manage your app and In-App Purchase prices at any time.
