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Apple Announces Tax Changes for App Store Developers

In an official statement, Apple revealed upcoming tax adjustments that will impact apps, in-app purchases, and subscriptions available in its renowned App Store. These changes are expected to have implications for the proceeds derived from app sales and in-app content in countries such as Ghana and Spain. As we delve into the specifics, discover how these modifications will affect developers and their businesses.

According to Apple, proceeds are subject to periodic adjustments in specific regions to align with evolving tax regulations. As of May 31, sales revenue generated from apps and in-app purchases, including auto-renewable subscriptions, will be recalibrated to accommodate tax changes in Ghana, Lithuania, Moldova, and Spain.

Let’s examine the alterations that will transpire in each country:

  • Ghana: The value-added tax (VAT) rate will witness an increase from 12.5% to 15%
  • Lithuania: The VAT rate for eligible e-books and audiobooks will undergo a reduction from 21% to 9%
  • Moldova: The VAT rate for eligible e-books and periodicals will be decreased from 20% to 0%.
  • Spain: A digital services tax of 3% will be implemented

Simultaneously, Apple acknowledges that it will begin withholding taxes for all App Store sales in Brazil, complying with recent changes in local tax regulations. Remarkably, despite these tax adjustments, Apple reassures developers that app and subscription prices will remain unaffected in these countries.

Apple elaborates on its role as a tax administrator for developers across more than 70 countries and regions. It empowers developers by enabling them to assign tax categories to their apps and in-app purchases, streamlining the process of reaching a global audience.

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With support for 44 currencies across 175 storefronts, the App Store’s commerce and payments system offers convenience and scalability. As Apple succinctly puts it, “The App Store’s commerce and payments system was built to empower you to conveniently set up and sell your products and services at a global scale.”

Developers can expect the Pricing and Availability section in the App Store Connect to be promptly updated when these tax changes come into effect. Further details can be accessed on the Apple Developer website.

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