For our readers in Europe who purchase apps from the iTunes App Store, here’s something that you might want to take note of. Recent reports have revealed that Apple has recently begun to send out emails to iOS developers, informing them that there will be a change to the way that taxes are handled in the European iTunes App Store.
Instead of applying the same VAT rate across the European iTunes App Store, Apple will instead take into account the charges based on the country that you are from. What this means is that in some cases, you could actually see your app prices go up. However in other instances, your apps could actually end up being cheaper.
Apple has also noted that the cut of app profits will be calculated after the VAT has been deducted from the purchase price, which once again could mean that some developers might make more, and some might make less. These changes will not come into effect right away and are expected to take place come 1st January 2015.
This follows the crackdown on Apple’s tax practices by some countries like the UK where the government is looking into companies like Apple, Google, Amazon, and more. It remains to be seen how huge of an impact this will have on customers but we guess we’ll just have to wait until 2015 to find out.
Filed in . Read more about Apps and Itunes App Store.