New tax changes could affect App Store pricing for E.U. shoppers

Apple has sent out an email to iTunes Connect developers announcing a change in how taxes are calculated for App Store purchases in the European Union. Starting January 1, 2015, Apple will charge customers the value-added tax, or VAT, rate based on the country in which they reside rather than calculating a flat VAT rate for all countries in the European Union.

According to the email, Apple says:

On January 1, 2014, value-added tax (VAT) rates for apps will change for all territories in the European Union. VAT will be based on the customer's country of residence instead of being the same across all EU territories.


Developer's proceeds are calculated after VAT is deducted.

The effect for consumers is that prices for apps could potentially increase if customers reside in an E.U. country with a high tax rate.

Dan Thorp-Lancaster