Global developers brace for changes as Apple unveils new tax and pricing policies on a worldwide scale

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Apple has announced significant changes to its tax and pricing structures for apps, In-App Purchases, and subscriptions, effective August 21, 2025. The updates aim to address new tax laws and currency fluctuations in various markets.

The changes affect developers across seven countries, including Brazil, Canada, Estonia, Romania, the Philippines, and Vietnam. Notably, developers in the Philippines and Vietnam will see modifications in their tax collection and remittance responsibilities, as reflected in Exhibit B and C of the Paid Applications Agreement.

In Vietnam, both foreign and domestic developers face comprehensive changes. The country introduces Personal Income Tax (PIT) for foreign individual developers and implements a 2% PIT for Vietnamese-based individuals. Additionally, Vietnam undergoes structural changes in its Foreign Contractor Tax (FCT) mechanism, affecting international business transactions. Apple will apply a 5% FCT on its commission for both organizations and individual developers.

Meanwhile, Canada eliminates its Digital Services Tax (DST) requirement and Digital Services Tax, demonstrating evolving governmental approaches to digital taxation. Brazil implements a 3.5% Imposto sobre Operações Financeiras (IOF) on digital transactions.

Romania experiences a dual change, with standard VAT rates rising from 19% to 21%, while reduced VAT rates for news, magazines, books, and audiobooks increase from 5% to 11%. Estonia increases its Value-Added Tax (VAT) from 22% to 24%. The Philippines introduces a 12% VAT for developers operating outside the country.

Developers utilizing the Philippines or Vietnam as their base storefront will maintain current pricing structures, while other storefronts undergo price adjustments to preserve equalization with the chosen base price.

The App Store Connect platform receives enhanced functionality through the updated Pricing and Availability section. This update allows developers to better manage their applications across global storefronts and displays upcoming price changes.

In-App Purchases of digital goods and services face the same tax modifications as standalone apps, with pricing adjustments scheduled for September 8 in affected markets. Recurring payment digital services, such as auto-renewable subscriptions, receive special protection from automatic price changes.

Apple's system maintains consistent relative pricing across global markets despite currency fluctuations and tax variations, a process known as pricing equalization. The updates to the Pricing and Availability section on the App Store Connect platform reflect this commitment to preserving fair pricing for developers worldwide.

These changes come amid ongoing regulatory pressure affecting Apple's App Store practices. Recent court rulings have impacted commission structures and payment system requirements, creating a complex regulatory landscape for developers to navigate.

In conclusion, Apple's tax and pricing adjustments aim to address the evolving regulatory landscape in the digital marketplace while preserving fair pricing for developers worldwide. The updates, effective August 21, 2025, will affect developers across seven countries, with the App Store Connect platform receiving enhanced functionality to better support developers in managing their global storefronts.

Global developers brace for changes as Apple unveils new tax and pricing policies on a worldwide scale