It’s about to get more expensive to go app shopping…
Apple has announced that they are increasing the prices in the Apple App Store as a result of tax changes being introduced to the digital market.
The minimum price of an app in the store will now start at €0.99 and come into effect immediately.
Apple confirmed the news and price updates to software developers yesterday, crediting the decision to increase the minimum price for paid-for apps as a result of changes to VAT rules and foreign exchange rates.
The move follows the introduction of new EU rulings that came into effect at the beginning of this year, which will see all digital products charged VAT at the rate of the customer’s home country. It’s believed the move could see VAT charges raise from 3% for some companies who had originally moved to other countries for production costs, to 20% for the consumers buying the product.
Critics of the tax hike have branded the move as a ‘serious hit’ to e-commerce, with small businesses likely to be affected by the rising costs to the consumer.
