Apple has announced that it will increase the prices of apps and in-app purchases (IAP) in several countries starting Feb. 13, Cult of Mac reports.
The reason for the change has been cited as "based on changes in taxes and foreign exchange rates."
The countries affected by the price increase include Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the United Kingdom. However, it has been stated that recurring subscriptions will not be affected.
On the other hand, the prices of apps in Uzbekistan will decrease by 3% due to a reduced value-added tax (VAT) rate. Apple will estimate and remove taxes based on the tax category information provided by developers before calculating commission.
Apple has also announced that it will adjust the proceeds it pays to developers in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand, and Uzbekistan due to changes in tax regulations. Payments to developers in several other countries will increase by the end of January.
More Changes from the App Store
In Ireland, Luxembourg, Singapore, and Zimbabwe, prices remain, but proceeds will be adjusted to reflect tax changes.
Ireland will reduce its value-added tax rate on electronic newspapers and periodicals from 9% to 0%, while Luxembourg will reduce its value-added tax rate from 17% to 16%. Singapore will increase its goods and services tax rate from 7% to 8%, and Zimbabwe will increase its value-added tax rate from 14.5% to 15%.
Moreover, by the end of January, proceeds will increase for local developers selling in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand, and Uzbekistan. Exhibit B of the Paid Applications Agreement will be updated to reflect these changes. Check out this document to learn more about the Paid Applications Agreement.
Why Apple Apply these Changes
Apple regularly adjusts the prices of apps on its App Store worldwide for factors such as inflation, currency, and local tax regulations. In December 2022, the company introduced new price tiers, starting from 29 cents up to $10,000.
The new price tiers will bring in 700 new price points and tools to make international selling easier for developers, which will be available in spring 2023.
Developers will now have control over their product prices in 45 currencies across 175 regions. This will allow them to better cater to their target audience, no matter where they are in the world.
Apple's tools will make it easier for developers to set prices in local currencies, so they won't have to convert them by hand. This will definitely speed up the process.
In Other News
In other news, the upcoming iOS 17 is said to give iPhones more power and efficiency. Apple is working to improve technology and compatibility with other components.
For the time being, only the future will tell about the new operating system. While the company has not released any official information, rumors and leaks have fueled much speculation in recent weeks. Learn more here.
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