Apple has sent an email to iOS developers reminding them of an upcoming value-added tax rate policy changes, that are calculated for App Store purchases in the European Union.
Starting January 1, 2015, the company will charge the value-added tax, or VAT, rate based on the country which they are from rather than calculating a flat VAT rate for all countries in the European Union. That means, that residents of the countries, where value-added taxes are higher than users are currently being charged, could actually see their app prices go up.
According to the email, Apple says:
“On January 1, 2014, value-added tax (VAT) rates for apps will change for all territories in the European Union. VAT will be based on the customer’s country of residence instead of being the same across all EU territories.”
Apple’s tax practices recently came under fire from government authorities.
There is no information on whether Apple plans to apply the new tax rule to all iTunes purchases, including music, movies and e-books. It is also unclear how huge of an impact this will have on customers.