Rise of Prices on The App Store Starting from Next January 1

Apple has sent an email to the developers of iOS informing them of the changes in European legislation on the management of digital tax which will come into force on January 1 and which, in the case of Spain, will be a approximate 5% increase in the price of the App Store.

So far, the European Union laws distinguished between physical goods and services when it comes to tax them. With the first taxes corresponding to the country of residence of the purchaser, applied while services (falling within this category software), was used in the country of the company.

Apple took advantage of this to apply the lowest rate possible processing payments through its subsidiary in Luxembourg, where the VAT is 15% front, for example, to 27% of Hungary, the highest within the EU Member States.

An app with a typical price of 0.89 euros will be reduced to 0.93 euros to

With the new law, the services supplied electronically, including apps, priced in the country of residence of the purchaser by which Spaniards will spend that 15% mentioned previously to our already usual 21%. The change means that an app with a typical price of 0.89 euros will be reduced 0.93 euros, while one of 4.49 euros will increase to EUR 4.72 to.

In your mail, Apple advises developers that App Store prices are VAT included while their incomes are calculated without taxes for what will not suffer modifications. In short, developers will gain the same and it will be us who will have to assume the difference (obviously for other side).

What is not so clear is whether Apple will implement this change of VAT to all purchases from iTunes, including music, films and books, or if you have found a way to limit it for the time being to its app store. The law seems clear, and affects all digital downloads, but for now we are left with the doubt.