Apple announced that it will be updating prices for apps and in‑app purchases in Nigeria, Egypt and Tanzania as from the 25th of July. This will be done to reflect changes in tax regulations or foreign exchange rates.
According to the tech giant, “these updates are done using publicly available exchange rate information from financial data providers to help ensure prices for apps and in‑app purchases stay equalized across all storefronts.”
“On July 25, pricing for apps and in‑app purchases (excluding auto‑renewable subscriptions) will be updated for the Egypt, Nigeria, Tanzania, and Türkiye storefronts. These updates also consider the following tax changes:
- Egypt: introduction of a value‑added tax (VAT) of 14%
- Tanzania: introduction of a VAT of 18% and a digital service tax of 2%
- Türkiye: increase of the VAT rate from 18% to 20%”
How this impacts pricing
- If you’ve selected Egypt, Nigeria, Tanzania, or Türkiye as the base storefront for your app or in‑app purchase (excluding auto‑renewable subscriptions), the price won’t change on that storefront. Prices on other storefronts will be updated to maintain equalization with your chosen base price.
- If the base storefront for your app or in‑app purchase (excluding auto‑renewable subscriptions) isn’t Egypt, Nigeria, Tanzania, or Türkiye, prices will increase on the Egypt, Nigeria, Tanzania, and Türkiye storefronts.
- If your in‑app purchase is an auto‑renewable subscription or if you manually manage prices on storefronts instead of using the automated equalized prices, your prices won’t change.
How this impacts proceeds and tax administration
Apple states that proceeds for sales of apps and in-app purchases (including auto‑renewable subscriptions) will also change to reflect the new tax rates and updated prices.
