The prices of Apple App Store applications and in-app purchases are set to increase in multiple countries starting February 13, 2023, according to a blog post by Apple. The prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the United Kingdom.
The Apple App Store is the online marketplace for downloading and purchasing applications for Apple devices such as iPhones, iPads, and Macs. The App Store's commerce and payment system enables global selling of products and services through 44 currencies in 175 storefronts.
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Apple provided an update in its blog post: "Periodically, we update prices on the App Store in certain regions based on changes in taxes and foreign exchange rates. This is done using publicly available exchange rate information from financial data providers to help ensure prices for apps and in-app purchases stay equalized across all storefronts."
Due to the value-added tax rate decreasing from 15% to 12% in Uzbekistan, prices will also decrease. Therefore, proceeds will be adjusted based on the tax-exclusive price, taking the tax reduction into account.
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App Store Prices Won't Change
While prices on the App Store in Ireland (Reduction of the value-added tax rate on electronic newspapers and periodicals from 9% to 0%), Luxembourg (Reduction of the value-added tax rate from 17% to 16%), Singapore (Increase of goods and services tax rate from 7% to 8%), and Zimbabwe (Increase of value-added tax rate from 14.5% to 15%) won't change, developer proceeds will be adjusted to reflect the tax changes that happened.
Benefits to Local Developers
Proceeds will increase for local developers selling in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand, and Uzbekistan by the end of January. However, developers can choose to preserve prices for existing subscribers if their apps offer subscriptions.
