Apple App Store prices rise as VAT changes kick in and other shops likely to be hit

Changes are likely to lead to price adjustments at other retailers, including Amazon

Andrew Griffin
Friday 09 January 2015 13:56
Comments
Apple's App Store recent ran a special promotion to coincide with World Aids Day
Apple's App Store recent ran a special promotion to coincide with World Aids Day

Prices in Apple’s App Store have risen sharply as a result of tax changes that could also hit prices at other retailers.

The minimum price of an app in Apple’s store has risen from £0.69 to £0.79. Apps that were priced at other price points have seen similar increases.

The change has also hit in the EU, where apps now start at €0.99.

Apple announced the changes to developers yesterday, saying that they were a result of changes to VAT rules and foreign exchange rates.

The change is likely to hit retailers including Amazon, too.

As a result of the new EU rules that came in at the beginning of the year, digital products will be charged VAT at the rate of the customer’s home country. For big digital suppliers that often base themselves in Luxembourg to benefit from lower tax rates, that could mean that the VAT charged will rise from 3 per cent to 20 per cent.

Though that increase will result in extra tax revenues for the treasury, it’s likely that the extra costs will be passed on to consumers and publishers.

Small businesses are also set to be hit by the rise.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in