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Apple details new App Store taxes and price changes in select countries

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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Imposto sobre Operações Financeiras (IOF) of 3.5% Canada: Digital services tax (DST) no longer applicable

Digital services tax (DST) no longer applicable Estonia: Value‑added tax (VAT) rate increase from 22% to 24%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.

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