Egypt begins collecting taxes from Apple’s “App Store” on this date

Apple has decided to update the prices of apps and purchases within the App Store (excluding auto-renewing subscriptions) for its users in a number of countries, including Egypt, Nigeria, Tanzania and Turkey, starting from July 25. Which will take into account the tax changes taking place.

And “Apple” indicated in a statement on its website to developers that it will deduct a tax of 14% on the value added in Egypt, and introduce a value-added tax of 18% and a digital service tax of 2% in Tanzania, in addition to raising the value-added tax rate from 18% to 20% in Turkey.

The App Store’s commerce and payments system was built to enable developers to create and sell their products and services on a global scale in 44 currencies across 175 App Store storefronts.

“These updates are made using publicly available exchange rate information from financial data providers to help ensure that app prices and in-app purchases remain equal across all storefronts,” Apple said.

How does that affect pricing?

And the company stated that if you select any of the countries: Egypt, Nigeria, Tanzania, or Turkey, as a primary storefront for your application or for in-app purchase (except for auto-renewable subscriptions), the price will not change in this storefront. Prices will be updated in other application interfaces to maintain parity with the base price you have chosen.

Whereas if your app’s primary storefront or in-app purchase (excluding auto-renewing subscriptions) is not in Egypt, Nigeria, Tanzania, or Turkey, prices will increase in those countries’ storefronts.

This means, for example; The new increase will apply to apps made by developers for whom Egypt is not their primary storefront in the case of “Egypt”.

The company also noted that if your in-app purchase is an auto-renewing subscription or if you manually manage prices on app interfaces instead of using auto-equal pricing, your prices won’t change.

The company said that the price updates will be available in the “App Store Connect” to display the upcoming price changes.

Apple will collect and remit applicable taxes in Egypt and Tanzania, according to the statement.

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