Apple store to Change its Pricing System in Tanzania

According to Apple, Tanzania had implemented an 18% VAT plus a 2% digital tax, while Egypt had instituted a 14% VAT, and Turkiye had increased the VAT rate from 18% to 20%.

Apple will introduce changes in pricing or in-app purchases made through the App Store.

The changes, which will start on July 25, 2023, will have an effect on app developers and consumers in three African markets, including Tanzania, Nigeria, and Egypt.

Also, the price increase will be implemented in Turkiye.

Through the statement available on their website, Apple mentioned the implementation of Value Added Tax (VAT) and a rise in taxes in the affected countries as the reasons for the changes, which suggests that the prices will increase even though the company did not specify whether it would be an upward or downward adjustment.

The company claims that pricing in the impacted nations is being revised to reflect recent changes in tax laws and foreign exchange rates.

According to Apple, Tanzania had implemented an 18% VAT plus a 2% digital tax, while Egypt had instituted a 14% VAT, and Turkiye had increased the VAT rate from 18% to 20%.

It, however, did not disclose the information seen on the Nigerian VAT and added tax.

"The App Store’s commerce and payments system was built to empower you to conveniently set up and sell your products and services on a global scale in 44 currencies across 175 storefronts. When tax regulations or foreign exchange rates change, we sometimes need to update prices on the App Store in certain regions and/or adjust your proceeds,"

Apple relayed via a statement.

It adds: These updates are done using publicly available exchange rate information from financial data providers to help ensure prices for apps and in‑app purchases stay equalized across all storefronts. On July 25, pricing for apps and in-app purchases (excluding auto-renewable subscriptions) will be updated for the Tanzania, Egypt, Nigeria, and Turkiye storefronts.

"If you’ve selected Egypt, Nigeria, or Tanzania, as the base storefront for your app or in-app purchase (excluding auto-renewable subscriptions), the price won’t change on that storefront. Prices on other storefronts will be updated to maintain equalization with your chosen base price,"

the company communicated.

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