Apple increases UK apps price: Why iOS apps will be more expensive from today

If you go onto the Apple App Store today, you may notice the paid-for apps are rather more expensive than earlier in the week.

Apple increases UK apps price: Why iOS apps will be more expensive from today

According to an email sent to iTunes Connect members, seen by Apple Insider, changes to the pricing matrix in the EU, Iceland, Norway, Russia and Canada have been brought about in response to changes in tax legislation in the respective countries.

Apple increases UK apps price: Why iOS apps will be more expensive from today

In the EU, companies operating within the bloc were able to charge VAT according to where the company is based, rather than the location of the purchaser, allowing Apps to be sold at a flat rate across the union.

For example, UK residents were able to pay just 4% tax on apps bought through the App Store, rather than 20%, as transactions were routed through Luxembourg. However, this had been seen by many politicians, including chancellor George Osborne, as a tax loophole that needed to be closed and new legislation, which came into effect on 1 January, was brought in to deal with it.

The knock-on effect is that Apple – and potentially other companies, such as Amazon, Google and Microsoft, that are located in Luxemourg or other low-tax jurisdictions – will pass this increase, which also applies to ebooks and other digital goods, onto customers.

However, there’s no need to panic just yet, as the increase will be a matter of pence in the pound, although heavy purchasers will, of course, feel the effects of the change more.

Will the changes in pricing policy for apps and ebooks change your buying habits? Let us know in the comments.

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