The UK's recent Budget has pushed out – quietly – a new ruling that will surely see iTunes Store prices rise. The rule states that digital content such as apps, music, books and videos will be charged at the rate of tax based on the country it is sold in. Basically pushing it through that iTunes content will be hit with the standard UK rate of VAT at 20%.
Of course it doesn't just apply to iTunes. Google Play, Amazon, any company who sells digital content will be subject to the rules which are set to come into effect on January 1 2015. It's a significant increase on selling through the likes of Luxembourg where tax is just 3%. So any loopholes are being closed. The UK Government will receive a large extra chunk of revenue, but for us regular folks it just means something else we love will cost more money. Disappointing, isn't it? Even if it isn't totally unexpected.
Source: The Guardian
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