Apple Announces That European App Prices Will Change on January 1st

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Posted December 18, 2014 at 8:11am by iClarified

Apple has announced that on January 1st, 2015, value-added tax (VAT) rates for apps will change for all territories in the European Union.

Starting next year VAT charges will be based on your country of residence rather than being the same for all EU countries. This could mean higher or lower app prices depending on your location.

Apple also notes that developers' proceeds are calculated after VAT is deducted from the app's price.

Below is the full announcement sent to iClarified.

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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.

Note that prices for apps on the App Store include VAT, while the developer's proceeds are calculated after VAT is deducted.

Learn more about updated VAT rates for apps on the App Store.

If you have any questions about this change, contact us.

Regards,

The App Store team
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Apple Announces That European App Prices Will Change on January 1st

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TOP LEATHER JACKETS - May 10, 2017 at 10:07am

PRICES SHOULD BE REDUCE

Tina Allen - May 10, 2017 at 10:06am

Price always reduces as time passes www.saleonleather.com

Andy Butler - August 9, 2016 at 9:48am

How Much ? !! and Will It increase or decrease ?

lepaka - December 18, 2014 at 10:24pm

it is a fun decision, to get the highest profits Apple and similar companies make a office in Luxembourg, so they will pay the less taxes possible to the cheapest EU government, but to charge the users they will charge local VAT that varies between 15% (Luxembourg) to 27% (in Hungary). buy something in Apple online and you get an invoice from Luxembourg, but you pay your EU VAT tax!

oblivion - December 18, 2014 at 9:51pm

I'm gonna go shopping like a mad man in both App Store and Mac App Store before the year end.

O - December 18, 2014 at 7:23pm

Well... That's pretty fucked up, why isn't Apple taking the hit by paying for the extra VAT while keeping Luxembourg's as the base rate ? In the case of France (where I happen to live) that'd be 4.6% of the app's price, which isn't much if you ask me, even consider pricy apps such as Final Cut. And if Luxembourg ever raise their VAT, then it'd be even less of a hit for Apple. LIKE THEY'RE NOT MAKING ENOUGH $ ALREADY..........!

oblivion - December 18, 2014 at 6:14pm

It's basen on Luxemburgh VAT today at 15% (which will rise to 17% in 2015). Here in Sweden it is 25%. This is not Apples idea but EU regulations...and it is probably bad for everyone unless each individual country's VAT can be added on top of what the developer want to charge for his/her app. Anyway I believe the average price for apps will rise for users in EU since Luxemburgh has one of the lowest VAT.

bobcho8383 - December 18, 2014 at 12:17pm

And what is the current VAT rate that is now used for all EU countries?