Apple is contacting developers about important tax and pricing modifications that will influence various nations, including Brazil, Canada, Romania, and others. These alterations are scheduled to take effect immediately or on September 8, based on the particular update.
### Immediate Tax Modifications
As of today, Apple has revised the revenues from qualifying app sales and in-app purchases (IAP) in the following nations:
– **Brazil**: A new Imposto sobre Operações Financeiras (IOF) tax of 3.5% has been implemented.
– **Canada**: The prior Digital Services Tax (DST) is now obsolete.
– **Estonia**: The Value-Added Tax (VAT) rate has risen from 22% to 24%.
– **Romania**:
– The VAT rate has gone up from 19% to 21%.
– The reduced VAT rate for news, magazines, books, and audiobooks has increased from 5% to 11%.
– **The Philippines**: A VAT of 12% now applies to developers outside the nation.
– **Vietnam**:
– For entities located outside Vietnam, the VAT rate has been raised from 5% to 10%.
– Individual developers outside Vietnam will now incur a Personal Income Tax (PIT) of 5%, replacing the old Corporate Income Tax (CIT). The reduced VAT rate of 0% for news, magazines, and books has been abolished, and all content will now be taxed at the standard rate.
– For organizations in Vietnam, Apple will cease to remit the foreign contractor tax (FCT) on sales to end customers, but a 5% FCT will be introduced on Apple’s commission.
– Individual developers in Vietnam will see a PIT of 2%, substituting the CIT, alongside a 5% FCT on Apple’s commission. The reduced VAT rate for news, magazines, and books is also no longer applicable.
Apple has announced that updates to the Paid Applications Agreement will occur for the Philippines and Vietnam, with translations of the amended agreement anticipated to be available within the next month.
### Future Price Modifications
Effective September 8, app and IAP pricing will be revised for the Philippines and Vietnam unless developers have already selected one of these regions as their primary storefront. Should a developer opt for either the Philippines or Vietnam as their base, prices in other areas will be modified to ensure price consistency.
Apple has refreshed the “Pricing and Availability” section in App Store Connect to mirror these forthcoming changes, although it is essential to acknowledge that auto-renewable subscriptions will remain unaffected by this batch of updates.
These changes demonstrate Apple’s continued commitment to complying with local tax laws and upholding a uniform pricing framework across varying regions.
