Apple set to change its pricing system in Tanzania, Nigeria and Egypt

Apple will on July 25, 2023, begin introducing a change in pricing or in-app purchases made through the App Store with App developers and consumers in 3 African markets, including Tanzania, Nigeria and Egypt would be impacted by the price changes.

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 corporation 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 likewise implemented an 18% VAT plus a 2% digital tax, while Egypt had instituted a 14% VAT, as seen in the Nigerian business news platform, Nairametrics.

“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.

“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 Egypt, Nigeria, Tanzania, and Türkiye storefronts,” the statement also reads.

It is important to note that all offshore businesses that provide digital services to local clients in Nigeria are required to pay a 6% tax on their revenue under the terms of the 2021 Finance Act. Apps, high-frequency trading, electronic data storage, and internet advertising are all included in this.

“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.

Source: Business Insider