Apple to begin levying country-specific App Store taxes across EU on Jan. 1
A significant change in the taxation of purchases made on the App Store in the European Union (EU) is set to take effect at the beginning of the new year.
As noted by iMore, Apple has sent an email notifying developers of the change, which essentially imposes country-specific taxes rather than levying the same tax rate across all territories in the EU for App Store purchases:
On January 1, 2015, value-added tax (VAT) rates for apps will change for all territories in the European Union. VAT will be based on the customer’s country of residence instead of being the same across all EU territories.
The email notes that VAT is included in the prices of apps on the App Store and that app developers’ proceeds are calculated after VAT is deducted.
Consequently, customers in EU territories are likely to see price adjustments on the App Store soon, as developers adapt to the change in their apps’ taxation.
In related news, Apple yesterday took its online store in Russia offline as it reviews its product pricing in light of the extreme fluctuations in the ruble.
See also: Apple Pay could soon be launched across Europe, Middle East, India and Africa, Apple to build huge R&D center in Japan, says Prime Minister Shinzō Abe, and Apple’s ‘App Store’ trademark appeal goes down in Australia.
