Apple is contacting developers about upcoming tax and price updates for a few countries, including Canada, Romania, and Brazil. Here are the details.
Tax changes start today, price changes slated for September 8
In an email sent to developers, Apple announced that as of today, proceeds from the sale of eligible apps and in-app purchases (IAP) have been modified in:
Brazil: Imposto sobre Operações Financeiras (IOF) of 3.5%
Imposto sobre Operações Financeiras (IOF) of 3.5% Canada: Digital services tax (DST) no longer applicable
Digital services tax (DST) no longer applicable Estonia: Value‑added tax (VAT) rate increase from 22% to 24%
Value‑added tax (VAT) rate increase from 22% to 24% Romania: VAT rate increase from 19% to 21% Reduced VAT rate increase from 5% to 11% for news, magazines, books, and audiobooks
The Philippines: VAT introduction of 12% for developers based outside of the Philippines
VAT introduction of 12% for developers based outside of the Philippines Vietnam: Organizations based outside of Vietnam: VAT rate increase from 5% to 10%. Individual developers based outside of Vietnam: Personal income tax (PIT) introduction of 5%, replacing the corporate income tax (CIT). Reduced VAT rate of 0% for news, magazines, and books no longer applies and all content will be taxed at the standard rate. Organizations based in Vietnam: Apple will no longer remit foreign contractor tax (FCT) on sales to end customers. FCT of 5% introduced on Apple’s commission. Individual developers based in Vietnam: Personal income tax (PIT) introduction of 2%, replacing the corporate income tax (CIT). FCT of 5% introduced on Apple’s commission. Reduced VAT rate of 0% for news, magazines, and books no longer applies and all content will be taxed at the standard rate.
Regarding the Philippines and Vietnam, Apple is updating Exhibits B and C of the Paid Applications Agreement and says translations of the revised agreement will be available within the next month.
Apple also says that starting September 8, app and IAP pricing will be updated for these two storefronts if a developer hasn’t already selected one of them as the base storefront. If a developer uses the Philippines or Vietnam as the base storefront, prices in other regions will be adjusted accordingly to maintain price equalization.
Finally, the company said that the “Pricing and Availability section of Apps has been updated in App Store Connect to display these upcoming price changes,” and clarified that auto-renewable subscriptions are excluded from this round of updates.
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