Apple’s new tax rules will apply to App Store app developers in Ghana, Lithuania, Moldova, and Spain. The company says that it administers tax on behalf of developers from more than 70 countries around the world. Using the set rules, developers can assign tax categories to their apps and purchases. “The App Store’s commerce and payments system was built to empower you to conveniently set up and sell your products and services at a global scale in 44 currencies across 175 storefronts. Apple administers tax on behalf of developers in over 70 countries and regions and provides you with the ability to assign tax categories to your apps and in‑app purchases”, writes Apple in the blog post.
New Tax Rules for App Store Developers
The tax structure offered by Apple depends on the tax rules of different countries. The company periodically changes its tax rules as per the changes in tax regulations in different countries. Here are the tax changes that will be introduced in Ghana, Lithuania, Moldova, and Spain starting from May 31, 2023.
Ghana: VAT rate increased from 12.5% to 15%. Lithuania: VAT rate reduced from 21% to 9% for eligible e‑books and audiobooks Moldova: VAT rate reduced from 20% to 0% for eligible e‑books and periodicals Spain: Digital services tax of 3% introduced
In addition to the above mentioned four countries, Apple also said that it will now withhold taxes for all App Store sales in Brazil due to a change in the tax regulations. Collection and remittances of taxes to the appropriate tax authority will be carried out on a monthly basis. Developers can view the deducted tax in June 2023 along with the earnings of the month of May. While announcing changes, Apple has said that these changes will not impact developers in a major way as the changes are applicable to the tax. Also, it is to be noted that the tax changes introduced by Apple today will not affect the price of apps and subscriptions in any way, provided developers do not hike the prices of the apps to compensate for the increased tax.
