Apple sues Epic Games to pay damages for violation of App Store rules

Apple cuts revenue for developers in France, Italy and the UK due to tax on “big technology”

Apple has changed the rules for calculating revenue for developers who release their applications in the App Store in several countries. The reason for this was changed in the tax legislation of these states.

Contributor revenue will be adjusted to reflect the revised value-added tax rate, and App Store prices will be increased (excluding subscription services). This will affect the following countries:

  • Chile, where the new value-added tax is 19%;
  • Mexico, where the new value-added tax is 16%;
  • Saudi Arabia, where the value-added tax has been raised from 5% to 15%;
  • Turkey, where the new digital services tax is 7.5% (in addition to the value-added tax of 18%).

The revenue of developers from a number of European countries will also be adjusted, but prices in the App Store will not be raised.

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  • In Germany, the value-added tax has been reduced from 19% to 16%.
  • France has introduced a new tax of 3% on digital services (in addition to the 20% value-added tax).
  • Italy has introduced a new tax of 3% (in addition to the value-added tax of 22%).
  • The UK has introduced a new value-added tax of 2% (in addition to the 20% value-added tax).

Thus, the 70% share that iOS developers receive will be calculated not from 100% of revenue, but from 77% in France, 78% in the UK, and 75% in Italy. As for Germany, Apple has promised to return the difference to consumers.

This affected not only Apple but also Google and Amazon. The former increased the tax on YouTube ads and search results, and the latter increased the tax on sellers.

Initially, European states tried to agree on a single tax on big technologies, which would involve raising revenue from online stores, search engines, and social networks. However, it was not possible to agree on a single percentage, so the collection is different in different countries.

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