Apple will start implementing changes to its pricing or in-app purchases made through the App Store on July 25, 2023.
The price changes would affect app developers and users in three African markets: Nigeria, Egypt, and Tanzania.
The tech giant did not say whether the changes would be upward or downward. But it mentioned the implementation of Value Added Tax (VAT) and an increase in taxes in the affected countries as the reasons for the changes, which suggests that the prices will rise.
Apple said prices have been updated to reflect recent changes to tax laws and currency exchange rates in the impacted countries. It noted that Tanzania had also implemented an 18% VAT plus a 2% digital tax, while Egypt had instituted a 14% VAT.
The 2021 Finance Act stipulates that all offshore companies operating in Nigeria that offer digital services, including apps, high-frequency trading, electronic data storage, and internet advertising, to local clients must pay a 6% tax on their revenue.
“If you’ve selected Egypt, Nigeria, or Tanzania, as the base storefront for your app or in-app purchase (excluding auto-renewable subscriptions), the price won’t change on that storefront.
“Prices on other storefronts will be updated to maintain equalisation with your chosen base price,” the company said.
Additionally, the Pricing and Availability section of My Apps in App Store Connect has been updated to reflect these impending price changes. You always have the option to alter the cost of your apps, in-app purchases, and auto-renewing subscriptions.
