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App Store apps, in-app purchases to get expensive in India

App store applications and in-app purchases to cost more.   | Photo Credit: Reuters

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App Store applications and in-app purchases to cost more in India as Apple adds 2% equalisation levy.

"When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store," Apple said in a statement.

The new equalisation levy of 2% is in addition to the existing goods and services tax of 18%, Apple added.

The levy is applicable on the online sales of any goods or provision of any services by or through a non-resident e-commerce operator.

The levy was initially introduced in the Finance Act 2016, and amended four years later in the Finance Act 2020 at 2%.

Apple has also updated its prices for app and in-app purchases on the App Store in Brazil, Colombia, Indonesia, Russia, South Africa, Iceland and Albania.

The Pricing and Availability section of My Apps will be updated, once the changes are effective. The proceeds will be adjusted and calculated based on the tax-exclusive price, Apple said.

The iPhone maker said it will implement the changes in the next few days, but this will exclude the apps with auto-renewable subscriptions.

However, the company will allow the developers to change the price of their apps and in-app purchases including auto-renewable subscriptions. This can be done at any time in App Store Connect.

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Printable version | Nov 29, 2020 11:57:22 PM | https://www.thehindu.com/sci-tech/technology/app-store-apps-in-app-purchases-to-get-expensive-in-india/article32952431.ece

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