Apple is updating its App Store prices in Egypt, Nigeria, Tanzania, and Türkiye to reflect new tax laws. The price changes will take effect on July 25, 2023. If you have an app or in-app purchase in one of these countries, you will need to update your pricing to reflect the new tax rates.
Apple, the tech giant, has revealed its intentions to bring about changes in pricing and in-app purchases made through the App Store, effective from July 25, 2023. This move will mainly impact app developers and users in three significant African markets, namely Nigeria, Egypt, and Tanzania.
The driving force behind these pricing updates, according to Apple, is the recent shifts in tax laws and currency exchange rates in the targeted nations. Tanzania, for example, has introduced an 18% VAT and a 2% digital tax, while Egypt has implemented a 14% VAT.
- 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 the VAT rate from 18% to 20%
In the case of Nigeria, the 2021 Finance Act mandates that offshore companies offering digital services, such as apps, high-frequency trading, electronic data storage, and internet advertising, must pay a 6% tax on their revenue when serving local clients.
Apple clarified that if an app or in-app purchase (excluding auto-renewable subscriptions) designates Egypt, Nigeria, or Tanzania as the base storefront, the prices will remain unchanged on that specific storefront. However, prices on other storefronts will be adjusted to align with the chosen base price.
Additionally, the My Apps section in App Store Connect’s Pricing and Availability segment has been updated to reflect the forthcoming price changes. Developers still have the flexibility to adjust the costs of their apps, in-app purchases, and auto-renewing subscriptions as needed.
As Apple’s pricing adjustments come into play, developers and users in these African markets will have to adapt to the changing landscape of in-app purchases and carefully consider the potential financial implications of these alterations.