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Digital Companies Passing on Cost of Taxes on Digital Services to Customers

04 September 2020

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Approved Changes

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United States-Austria-Chile-France-Germany-Italy-Mexico-Saudi Arabia-Turkey-United Kingdom

Apple has announced that it is increasing the price of its apps and in-app purchases on its App Store in markets that have introduced measures for the taxation of digital services. This includes that prices will be increased in the coming days in response to tax changes in Chile, Mexico, Saudi Arabia, and Turkey, with proceeds of developers adjusted accordingly and calculated based on the tax-exclusive price: Chile: New value-added tax of 19% Mexico: New value-added tax of 16% Saudi Arabia: Increase in value-added tax from 5% to 15% Turkey: New digital services tax of 7.5% (in addition to the...