App Store prices see increase in Chile, Mexico, Saudi Arabia, and Turkey based on tax changes

Apple has shared today that App Store prices in four countries will rise. The new prices will take effect in the coming days and are due to tax rate increases ranging from 7.5-19% in the affected countries.

Some of my favorite gear

AirPods Pro 2

Best wireless earphones with active noise-cancellation, great sound quality, and

Apple warned developers of the incoming App Store pricing changes today on its developer site:

When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store. In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in response to tax changes in Chile, Mexico, Saudi Arabia, and Turkey. Your proceeds will be adjusted accordingly and will be calculated based on the tax-exclusive price.

Here are the specific changes for each country:

• Chile: New value-added tax of 19%
• Mexico: New value-added tax of 16%
• Saudi Arabia: Increase in value-added tax from 5% to 15%
• Turkey: New digital services tax of 7.5% (in addition to the existing value-added tax of 18%)

In addition to those changes, proceeds will see a change in Germany France, Italy, and the UK “and will be calculated based on the tax-exclusive price.” But Apple notes App Store prices will not change.

• Germany: Reduced value-added tax rate from 19% to 16% (effective July 2020)
• France: New digital services tax of 3% (in addition to the existing value-added tax of 20%)
• Italy: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
• United Kingdom: New digital services tax of 2% (in addition to the existing value-added tax of 20%)

Finally, Apple has made the full list of pricing changes per country available with the updated numbers showing in the Pricing and Availability section of My Apps. Developers can choose to update the pricing of their apps to adjust for the tax changes impacting their earnings.

You can download the updated price tier charts now. Once these changes go into effect, the Pricing and Availability section of My Apps will be updated. You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to preserve prices for existing subscribers.

FTC: We use income earning auto affiliate links. More.