Apple is changing its App Store’s policies ahead of some major changes to Europe’s VAT policy coming into effect next year.
Apple is reminding its developers that the App Store will start charging different VAT rates depending on where the customer is buying the app. Until now all users paid a flat rate, regardless of which EU country they resided in.
However, new VAT changes will come into effect starting January 1st 2015 and these will affect the sale of digital goods (think apps, games, movies, music, books) across the Union. The legislation is the EU’s latest weapon in its fight against the Digital Single Market and European competitiveness, as it forces small and medium business to either incur large administrative challenges or stop selling their digital goods across borders.
The good news for Apple developers is that the company is obviously helping them out by collecting VAT for each state separately. Also worthy of note is that apps and games may see higher prices in certain regions because each country's VAT is calculated on top of the developer’s revenue.
Source and screenshot: AppleInsider