Apple cuts revenue for App Store developers in France and UK due to tax hikes

Apple cuts revenue for App Store developers in France and UK due to tax hikes


Apple has adjusted its developer revenue formula in a number of countries. The reason was the changes in the rules of taxation. A number of governments have introduced new taxes for technology companies. This is reported on the site of the platform holder.

Tax changes in European countries:

  • French authorities introduced a new digital tax of 3%;
  • Italian authorities introduced a new digital tax of 3%;
  • The UK authorities have introduced a 2% tax on VAT.

In addition, Apple will change how it calculates developer revenue in Chile, Mexico, Saudi Arabia and Turkey. The authorities of all of the above countries have also raised taxes. The exception was Germany, where the authorities lowered the VAT by 3% (from 19% to 16%). In eastern countries, the company is offsetting the costs by raising prices in the App Store.

The discussion of a new digital tax in Europe has been going on for several years. The European authorities are unhappy that the American IT giants pay too little taxes in the territories where they operate and keep their profits in other jurisdictions.

The United States opposed the digital tax – Finance Minister Stephen Mnuchin argues that the new requirements should apply to all industries. In June, US officials announced their withdrawal from the discussion. In their opinion, the negotiations are at an impasse. Despite this, French Finance Minister Bruno Le Mer called these actions a provocation and said that European countries are still planning to introduce new taxes.



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