At present, some countries or regions around the world are actively brewing digital service tax, but this targeted tax increase has caused dissatisfaction with technology giants such as Apple and Google.
Some technology giants, such as Amazon, have already begun to pass the tax on digital services to sellers, and Apple is also preparing to pass on relevant taxes to users and application developers.
In addition to the digital service tax, Apple will adjust application prices based on currency exchange rates and value-added tax rates in some markets. It is recommended that developers pay attention to such price changes.
The new tax point for the Chilean market is 19% value-added tax, the new tax point for the Mexican market is 16% value-added tax, and the value-added tax of Saudi Arabia is increased from 5% to 15%.
In the Turkish market, a 7.5% digital service tax is added to the existing 18% value-added tax. After the above tax points and tax types are increased, the corresponding sales price of the app will increase.
At the same time, Apple’s share of developers in these markets will also be adjusted. Developer income is calculated at a price excluding tax, and developers may have to pay taxes themselves.
There is no adjustment to the price of users who have opened auto-renewal subscriptions, and those users who have auto-renewed subscriptions will still renew at the previous price.
The German market value-added tax rate has been reduced from 19% to 16%. France has added a 3% digital service tax to the existing 20% value-added tax.
In the Italian market, a 3% digital service tax was added to the existing 22% value-added tax, and the UK added a 2% digital service tax to the existing 20% value-added tax.
App prices in the above markets will not be adjusted for the time being, but Apple will calculate developer income based on tax-exclusive prices, and the overall income of developers may be reduced.
Of course, the developer can decide by himself whether to adjust the app sales price or subscription price to increase revenue. If the adjustment is not made, it will be handled in accordance with Apple’s official process.