Apple has announced that it is increasing the price of its apps and in-app purchases on its App Store in markets that have introduced measures for the taxation of digital services. This includes that prices will be increased in the coming days in response to tax changes in Chile, Mexico, Saudi Arabia, and Turkey, with proceeds of developers adjusted accordingly and calculated based on the tax-exclusive price:
- Chile: New value-added tax of 19%
- Mexico: New value-added tax of 16%
- Saudi Arabia: Increase in value-added tax from 5% to 15%
- Turkey: New digital services tax of 7.5% (in addition to the existing value-added tax of 18%)
The announcement also provides that proceeds of developers will be adjusted in Germany, France, Italy, and the UK, and will be calculated based on the tax-exclusive price, although prices on the App Store will not change:
- Germany: Reduced value-added tax rate from 19% to 16% (effective July 2020)
- France: New digital services tax of 3% (in addition to the existing value-added tax of 20%)
- Italy: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
- United Kingdom: New digital services tax of 2% (in addition to the existing value-added tax of 20%)
In addition to Apple, Google has reportedly informed advertising customers that it is increasing the cost of online advertising served on Google and YouTube in Austria, Turkey, and the United Kingdom as a result of the digital services taxes introduced in the three countries. The cost will be increased through an additional fee starting on 1 November 2020 equal to 5% in the case of Austria and Turkey and 2% in the case of the UK. Amazon has also announced that it will be increasing seller's fees in the UK to offset its 2% digital services tax.