{"id":29982,"date":"2020-09-03T17:04:24","date_gmt":"2020-09-03T21:04:24","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=29982"},"modified":"2020-11-02T16:30:12","modified_gmt":"2020-11-02T21:30:12","slug":"app-store-foreign-tax-changes","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2020\/09\/03\/app-store-foreign-tax-changes\/","title":{"rendered":"App Store Foreign Tax Changes"},"content":{"rendered":"<p><a href=\"https:\/\/developer.apple.com\/news\/?id=oyy56t2r\">Apple<\/a>:<\/p>\n<blockquote cite=\"https:\/\/developer.apple.com\/news\/?id=oyy56t2r\"><p>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.<\/p>\n<p>[&#8230;]<\/p>\n<p>In addition, your proceeds will also be adjusted in Germany, France, Italy, and the United Kingdom, and will be calculated based on the tax-exclusive price. However, prices on the App Store will not change.<\/p><\/blockquote>\n<p>France, Italy, and the United Kingdom have added digital services taxes of 2&#x2013;3%. I don&rsquo;t understand why Apple is not updating the pricing tiers to take this into account, like it does for VAT. Instead, the tax is <a href=\"https:\/\/twitter.com\/tim\/status\/1300898529473368067\">mostly<\/a> coming out of the <a href=\"https:\/\/twitter.com\/venderbase\/status\/1301289250890158082\">developer&rsquo;s<\/a> <a href=\"https:\/\/twitter.com\/frankreiff\/status\/1301071238501224453\">cut<\/a>.<\/p>\n\n<p>The UK tax was <a href=\"https:\/\/www.gov.uk\/government\/publications\/introduction-of-the-digital-services-tax\/digital-services-tax\">intended<\/a> to affect &ldquo;large multi-national enterprises&rdquo; with &pound;500 million in revenue, but since Apple is the one collecting the payments it pushes very single developer over that limit.<\/p>\n\n<p>Apple notes that you can change the price at any time, but that&rsquo;s not very helpful in this case. Unlike other payment processors, the App Store doesn&rsquo;t let you set different prices in different regions. And there&rsquo;s no way to raise the price a small amount because you can only go up to the next whole tier.<\/p>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2020\/08\/18\/time-to-change-the-app-store-sales-model\/\">Time to Change the App Store Sales Model<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2020\/06\/19\/app-store-for-the-past\/\">App Store for the Past<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2016\/08\/30\/apple-ireland-and-the-eu\/\">Apple, Ireland, and the EU<\/a><\/li>\n<\/ul>\n\n<p id=\"app-store-foreign-tax-changes-update-2020-11-02\">Update (2020-11-02): <a href=\"https:\/\/developer.apple.com\/news\/?id=ul8i5to3\">Apple<\/a>:<\/p>\n<blockquote cite=\"https:\/\/developer.apple.com\/news\/?id=ul8i5to3\">\n<p>When taxes or foreign exchange rates change, we sometimes need to update prices on the App&nbsp;Store. In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App&nbsp;Store will increase in Brazil, Colombia, India, Indonesia, Russia, and South&nbsp;Africa.<\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>Apple: 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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2020-09-03T21:04:27Z","apple_news_api_id":"0a4a7842-9904-4925-b2a1-d72fb834d60f","apple_news_api_modified_at":"2020-11-02T21:30:18Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAg==","apple_news_api_share_url":"https:\/\/apple.news\/ACkp4QpkESSWyodcvuDTWDw","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[91,101,1927,31,1667,30,39,1666,169,1196],"class_list":["post-29982","post","type-post","status-publish","format-standard","hentry","category-technology","tag-appstore","tag-business","tag-european-union","tag-ios","tag-ios-13","tag-mac","tag-macappstore","tag-macos-10-15","tag-payments","tag-taxes"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/29982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=29982"}],"version-history":[{"count":4,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/29982\/revisions"}],"predecessor-version":[{"id":30567,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/29982\/revisions\/30567"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=29982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=29982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=29982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}