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Upcoming price and tax changes for apps and in-app purchases
- edandersen 4y agoLink to actual list of price tier updates: https://developer.apple.com/support/downloads/price-tier-updates/App-Store-Price-Tier-Updates-October-2022.pdf https://developer.apple.com/support/downloads/price-tier-upd...
- spaceman_2020 4y agoHmm so in Europe, the cheapest paid app is now 1.19 EUR? That's breaking a big psychological 1EUR barrier. Just inflation or weakening of EURO against the USD?
- xuki 4y agoEUR and USD is now at parity, plus 20% tax is exactly 1.2 EUR.
- rekoil 4y agoIs the US tax included in the US 99¢ pricing? I know US stores often don't show prices including tax, just wondering if it's the same on the App Store.
- raverbashing 4y agoI guess not? (Also I'm surprised Apple didn't include a "tip" field to guilt trip consumers into paying more)
- midoridensha 4y agoThey really should, but only in America since Americans love paying huge tips. Make sure the buttons offered are: 15%, 25%, 50%, and 100%.
- xuki 4y agoNo it’s not included.
- TrueGeek 4y agoMaybe it depends on the state? I’m in Georgia and just checked a few of my Apple invoices. A 99c app costs me exactly 99c, no tax is added.
- fedorareis 4y agoI don’t believe Georgia taxes software sales (specifically software sold online by out of state companies).
- wil421 4y agoApple has stores so they would be subject to state taxes unlike Amazon and other online only retailers years ago. You are 100% correct about software sales. Georgia law says since there is no property being exchanged it’s not subject to sales tax. I didn’t know this until today. The law is kinda weird. https://dor.georgia.gov/document/letter-ruling/lr-sut-2014-01-computers-and-software/download https://dor.georgia.gov/document/letter-ruling/lr-sut-2014-0...
- ghaff 4y agoThere is a lot of weirdness around what's taxed and not taxed at the state level. You'll see things like books being taxed but magazines not, clothes not taxed but only up to a certain price point, food not taxed unless it's prepared, etc.
- raverbashing 4y agoThere's a very good guide here: https://support.patreon.com/hc/en-gb/articles/360043054911-Patreon-s-Sales-Tax-Requirements https://support.patreon.com/hc/en-gb/articles/360043054911-P... Search for "state breakdown" for the US information
- fedorareis 4y agoThere is no Federal sales tax in the US. As it is a lot of US states don’t tax software. I have seen companies handle this in a couple ways. Some have actually moved to collecting tax for the jurisdictions where they need to pay it, others just pay the taxes out of their revenue.
- lapcat 4y agoApp Store doesn't show the state sales tax, but the tax is added to your receipt from Apple, just like for music, TV, and movie purchases. It's all the same system. And if you've made multiple purchases simultaneously (Apple likes to batch transactions), then the total sales tax is added at the end rather than individually to the items.
- tyingq 4y agoWhile it's feasible now, part of the reason it's historically not shown is that tax can vary by city borders, or even intersections of city/county borders where a city spans two counties. Zip codes aren't even enough granularity to get the right rate.
- a9ex 4y agoYou can still use the alternate € 0.49 or € 0.99 tiers.
- ipqk 4y agoIt was 1.09€ before Aug 2021 and decreased to 0.99€ then.
- f1shy 4y agoAs Milton Friedman said: "you cannot tax a company, you tax people". This is the result of a law trying to get some of the money the big Techs make in Europe... They still take the same money, but we have to pay more, so that our government can spend more money on us... oh wait!...
- sofixa 4y agoIsn't this more attributable to the high inflation rates currently? A roughly 10% increase corresponds to the 9.1% annual inflation (as of August 2022), with some margin for some previous years. Not to mention the USD/EUR rate, which also probably impacts them a bit. Which tax are you talking about? Considering the amount of profits and cash reserves this company has, I don't see why some people are so opposed to taxing them. They're swimming in more money they can possibly use, what use is it? Close the loopholes and make them pay their fair share, they'll barely notice the difference anyway.
- TheSpiceIsLife 4y agoWhat loophole? The one where a business gets to decide what they charge? The free market loophole? The loophole where business pass costs on to customers? Do you propose governments should set prices?
- cycomanic 4y agoSo here I thought the free market always finds the lowest price based on supply and demand and costs had very little to do with it.
- qeternity 4y agoCost is the largest factor of the supply curve…
- ReptileMan 4y agoExcept app store is not free market but monopoly. So it should be treated like one. The moment sideloading/root or alternative appstores are allowed - then then can charge whatever they feel like. Vendor lock in is bad towards the customer so limiting it actually increases the free market. What you think of is Laissez-faire
- fomine3 4y agoApple USDJPY rate is going to jump from 120 to 160, that's huge jump but it's just applying real forex. Rate difference to real forex is same as last rate change in 2019 (about +11.2%, maybe for 10% consumption tax and exchange fee/margin).
- davidkuennen 4y agoWait, they didn't include taxes in in app purchases before like they do in subscriptions?
- deleted 4y ago[deleted]
- jaimex2 4y agoWho benefits here?
- RNAlfons 4y agoInvestors?
- ipqk 4y agoThe last Euro change was in Aug 2021 when it decreased from 1.09€ to 0.99€. The Euro/USD was at about 1.2/1 then, where as now it's at parity.