Sunday, 11 January 2015

Apple raises the App Store minimum price

Apple has raised the minimum price for apps in the App Store. Apple announced the upcoming change back in December and it now applies for all EU countries and Canada.

Apple’s flat rate for different markets is gone for good. The price now includes the appropriate VAT for the market, which regional Store you are using, and thus it will be collected by its local government.

Until year 2015 Apple routed all EU purchases through Luxembourg, where the VAT for digital goods is just 3%. Now, an UK citizen will have to pay its full VAT of 20%, and that’s why the prices increase.

The minimum app prices in the App Store are now $1.19 in Canada, €0.99 in the European Union and £0.79 in the UK.

This is done according to the EU directive, which closes some loopholes on the digital goods value added taxes. Google Play Store, Amazon App Store and other similar services should applying similar rules as well.


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