Global developers receive news on revised taxes and product costs from Apple
Apple has announced a series of tax and pricing changes that will affect developers across seven countries, effective August 21, 2025. The updates, which include changes to Value-Added Tax (VAT) rates, Digital Services Tax (DST) elimination, and new tax structures, aim to reflect the evolving taxation landscape for digital goods and services.
The Paid Applications Agreement, which governs developer relationships with Apple's App Store ecosystem, will see updates to Exhibit B and C, reflecting Apple's collection and remittance of applicable taxes in the Philippines and Vietnam.
Vietnam will see comprehensive changes, with foreign organizations facing a VAT rate increase from 5% to 10%, and individual foreign developers encountering a new 5% Personal Income Tax (PIT) replacing the corporate income tax (CIT). Similarly, the Philippines will introduce a 12% VAT for developers operating outside the country.
Estonia will increase its VAT rate from 22% to 24%, while Romania will raise standard rates from 19% to 21%, and increase reduced VAT rates for news, magazines, books, and audiobooks from 5% to 11%.
Brazil will introduce a 3.5% Imposto sobre Operações Financeiras (IOF) for developers. Canada will eliminate its DST requirement, representing significant cost relief for developers operating in the Canadian market.
In a notable development, Apple's system, the Pricing Equalization mechanism, will maintain consistent relative pricing across global markets despite currency fluctuations and tax variations. This mechanism ensures that app prices remain fair and accessible to users worldwide.
Apple's system will also protect auto-renewable subscriptions from automatic price changes, demonstrating Apple's recognition of their importance.
The changes will also affect in-app purchases, with pricing adjustments scheduled for September 8 in affected markets.
Previously, Apple's pricing updates affected Japan and Türkiye storefronts in December 2024, and global price and tax updates affecting Chile, Laos, and Senegal were announced in August 2024.
However, the countries directly affected by Apple's announced tax and price changes on apps, in-app purchases, and subscriptions as of August 21, 2025, have not been specifically listed in the provided search results.
In another significant development, Apple was forced to eliminate commissions on external purchases after a contempt ruling in May 2025.
These changes highlight Apple's commitment to adapting to the ever-changing global tax landscape and ensuring a fair and equitable environment for developers on its App Store. Developers are advised to closely monitor these changes and adjust their pricing strategies accordingly.
The updates to the Paid Applications Agreement and the new tax structures will be available on the Apple Developer website within one month.
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