Grace Ashiru
From July 25, 2023, Apple plans to adjust app prices and in-app purchases in Egypt, Tanzania, and Nigeria. This decision is attributed to changes in tax laws, foreign exchange rates, and the introduction of Value Added Tax (VAT).
The price adjustments set by Apple in these markets will affect both app developers and users. Apple states that the updates must align with recent changes in tax regulations and currency exchange rates. For instance, Egypt’s implementation of a 14% VAT and Tanzania’s introduction of an 18% VAT along with a 2% digital tax are among the reasons behind these adjustments.
In a statement, Apple clarified that they occasionally need to update prices on the App Store in specific regions or adjust proceeds when tax regulations or foreign exchange rates change. These updates are based on publicly available exchange rate information from financial data providers. The purpose behind such adjustments is to maintain price parity for apps and in-app purchases across all storefronts, ensuring a consistent experience for users and developers alike.
The 2021 Finance Act states that the Nigerian federal government will impose a six per cent tax on revenue from overseas enterprises providing digital services to Nigerian customers.
According to Apple’s statement, if developers have selected Egypt, Nigeria, Tanzania, or Türkiye as the base storefront for their app or in-app purchase (excluding auto-renewable subscriptions), the prices on those specific storefronts will remain unchanged. However, prices on other storefronts will be adjusted to ensure they align with the chosen base price. For developers whose base storefront is not in Egypt, Nigeria, or Tanzania, prices will be increased on the storefronts of these three countries.
While Apple has identified Egypt and Tanzania as markets where they will directly collect and remit taxes, the statement does not explicitly mention the same for Nigeria.
