As part of new taxes and foreign exchange rates, Apple is raising prices on the App Store. The price of apps and in-app purchases will increase in Brazil, Colombia, India, Indonesia, Russia, and South Africa. These changes exclude auto-renewable subscriptions. Moreover, Apple will be updating these prices in Iceland and Albania to align with pricing used in other markets selling in U.S. dollars with value-added tax. However, there is no mention of services like Apple Music and iCloud subscription, and we don’t know if they will also have the price readjusted.
In a blog, Apple explains that prices in the App Store have been readjusted in these countries due to the exchange rate of local currencies, as well as an increase in taxes. The company said, “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 Brazil, Colombia, India, Indonesia, Russia, and South Africa.“
Apple says that in India, the readjustment includes an equalization levy of 2% in addition to the existing goods and services tax of 18%. On the other hand, in Indonesia, there’s a new 10% tax for foreign developers. If you are a developer, you can access the new price list for these countries, and find out how your apps will be affected. However, if you offer subscriptions, you can choose to preserve prices for existing subscribers.
Apple is yet to specify when the new prices will be applied for users. Once the new changes go into effect, the Pricing and Availability section of My Apps will be updated, Further, the users’ proceeds will be adjusted accordingly and calculated based on the tax-exclusive price.