Apple recently announced that it will be increasing the prices of apps in the UK and other countries from February 13. According to the company, the move is due to an increase in currency volatility and changes in value-added tax (VAT) rates in many markets. The new prices will apply to all apps and in-app purchases that are sold on the App Store.
Countries which will see a price increase
- Colombia
- Egypt
- Hungary
- Nigeria
- Norway
- South Africa
- United Kingdom
In Uzbekistan, App Store prices will see a drop due to a reduction in VAT (value-added tax) from 15 per cent to 12 per cent.
Apple offers several pricing options for app developers, including free apps, paid apps, and in-app purchases. Developers can also offer subscription-based pricing for their apps, which allows users to pay a recurring fee to access the app’s content or features. Additionally, Apple allows developers to offer promotional pricing for their apps, such as offering a discounted price for a limited time. The company recently announced that it will be providing 700 more pricing options for apps on the App Store, ranging from 29 cents to $10,000.
“These new pricing enhancements will be available for apps offering auto-renewable subscriptions starting today, and for all other apps and in-app purchases in spring 2023, giving all developers unprecedented flexibility and control to price,” says Apple in a statement.
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The statement added, “These newly announced tools, which will begin rolling out today and continue throughout 2023, will create even more flexibility for developers to price their products while staying approachable to the hundreds of millions of users Apple serves worldwide, and in turn help developers continue to thrive on the App Store.”
The VAT rate increase is part of a larger global trend of governments seeking to increase the amount of taxes they are able to collect from digital services.
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