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These seem to be uncertain but also exciting times for app developers, especially on Apple platforms. Big changes are taking place, both from Apple’s side and outside forces, sometimes against Apple’s wishes. Things are still in a state of flux, with some news potentially favoring developers, while others could be at their disadvantage. The latter from Apple is of the latter kind, with the company announcing some changes in at least eight countries that could affect overall developer earnings.
App sales and in-app purchases are of course subject to the tax laws of each and every country, in addition to the app store taxes imposed by Apple and Google. Tax laws also change from time to time, and Apple says it must adjust to account for them. Unfortunately, that sometimes also means that app prices need to be adjusted as well.
In Chile, Mexico, Saudi Arabia, and Turkey, higher value added taxes and new digital taxes in addition to them will cause app prices to rise. This could make paid apps and in-app purchases seem less attractive, which could translate to lower sales and lower profits for app developers.
In Germany, France, Italy, and the United Kingdom, App Store prices will not change, but developers’ income will also be directly adjusted due to tax changes. Interestingly, Germany is reducing its VAT rate, which means that revenue for developers here will increase.
These changes are definitely worrying news for developers during these already worrying times. On the bright side, there are also attempts to legally change the app store business to give developers a bigger share of the profits in the first place. With the world increasingly dependent on digital goods and mobile apps, the stabilization of the app store industry has likely become even more critical than ever.
