Apple is raising prices for apps hosted on its app stores in several countries after adjusting new taxes.
If you buy new apps from the Apple App Store, this sad news is for you. Apple has adjusted the prices of apps on its App Store in some countries. Some countries will see price increases for apps listed on the App Store, while other countries will see app prices drop. iPhone and iPad users in Bahrain, Ukraine and Zimbabwe, where VAT charges have increased significantly.
In Bahrain, VAT charges have been increased from 5% to 10%. Ukraine will see an increase in VAT charges of 20% and those in Zimbabwe will have to pay an additional 5% VAT. These prices shall be borne entirely by customers in these countries.
Apple App Store prices change in several countries
However, not all markets will experience price increases. Apple will adjust tax charges in the Bahamas as they come down to 10% from the previous 12%. The same goes for users in Tajikistan where VAT charges have been reduced from 18% to 15%. However, the prices will not drop for the end user and Apple will adjust its commission here.
Similarly, users in Oman will see no change despite the 5% VAT. In some countries, changes will be reflected in the billing but will not affect the final price. For example, in Austria, the value added tax rate will be reversed to 10% after a temporary drop to 5% for qualifying eBooks and audiobooks.
In Latvia, the VAT rate drops from 21% to 5% for qualifying e-books and e-publications. In Romania, the VAT rate drops from 19% to 5% for qualifying e-books, audio books and e-publications.
There will be no change in app prices for Indian users as no changes are being implemented here. Note that Apple takes a 30% cut on developer revenue for all apps and services sold globally.