Yesterday, Apple issued a reminder to developers that when tax rates or foreign exchange rates change, prices in some areas of the App Store will have to change. This means that the App Store will update its charges as well as developers’ benefits. Apple said prices for apps and in-app purchases (excluding auto-renewing subscriptions) in the App Store in Bahrain, Ukraine, and Zimbabwe will increase in the coming days. The developer’s benefit will be adjusted accordingly and will be calculated based on the price excluding tax.
- Bahrain: VAT increase from 5% to 10%
- Ukraine: a new VAT of 20%
- Zimbabwe: New digital services tax of 5%
The App Store prices in the following regions will remain the same. However, the developer earnings will have some changes due to differences in the tax rates.
- Bahamas: VAT reduces from 12% to 10%
- Oman: a new VAT of 5%
- Tajikistan: VAT reduces from 18% to 15%.
Additionally, if the developer has selected the appropriate tax category in App Store Connect and earnings are affected by the relevant changes, earnings will be adjusted accordingly to reflect the tax rate changes for the following content categories:
- Austria: VAT on eligible eBooks and audiobooks reverted to 10% (previously reduced to 5% temporarily)
- Latvia: Reduce VAT rate from 21% to 5% for eligible e-books and electronic publications
- Romania: Reduce VAT rate from 19% to 5% for eligible eBooks, audiobooks and electronic publications
After the above adjustments take effect, the “Price and Sales Range” section in “My App” will be updated immediately. Developers can change the prices of apps and in-app purchases (including auto-renewing subscriptions) at any time in App Store Connect. If the developer offers a subscription program, there is an option to keep the current price for existing subscribers.
Developers have earned $260 billion from the App Store
In a recent press release, Apple shared its achievements in the development of proprietary services. Apple has paid particular attention to the success of the App Store. The company said that since launching the app store in 2008, developers who host their apps on it have earned more than $260 billion. However, from this amount, you need to subtract the commission that Apple charges for all purchases in the app store. It is important to note that over the past year, the creators of software published in the App Store have earned about $60 billion. As of the end of 2019, Apple said it had paid developers a total of $ 155 billion over the lifetime of the app store.