App Store Tax & Price Updates February 2025: Developer Guide

Apple has announced upcoming changes to the App Store's automated price equalization system, reflecting evolving tax and currency conditions across global markets. The update, which impacts both apps and in-app purchases, aims to maintain price parity while complying with local tax regulations in multiple regions.

Overview of the App Store Pricing Update

Apple's global storefront currently supports 175 markets and 43 currencies, relying on publicly available exchange rate and tax data to maintain consistent user pricing. The latest revision ties directly to new and adjusted tax rates in nine countries, requiring corresponding updates to developers' proceeds and app pricing.

Key Countries and Adjustments

New taxes introduced:

• Bhutan: 5% goods and services tax (GST)
• Mauritius: 15% value-added tax (VAT)

Increased existing rates:

• Kazakhstan: VAT up from 12% to 16%
• Russia: VAT up from 20% to 22%
• Zimbabwe: VAT adjusted from 15% to 15.5%

Reduced or removed taxes:

• Finland & Lithuania: Lower VAT on news, books, magazines, and audiobooks
• Ghana: Removal of the COVID-19 Health Recovery Levy
• Türkiye: Digital services tax reduced from 7.5% to 5%

These changes will alter developer proceeds from eligible app and in-app sales starting this cycle.

Policy and Agreement Updates

Apple will revise its Paid Applications Agreement to include the new tax collection and remittance responsibilities for Bhutan and Mauritius. This aligns developer contracts with local government requirements and ensures full compliance with new regimes.

In Mauritius, further changes are planned for mid-to-late February:

• If Mauritius is not set as the developer's base storefront, Apple will adjust local prices to reflect the new VAT, maintaining balance across other regions.
• If Mauritius is the base storefront, prices there remain stable, with corresponding adjustments elsewhere.

Importantly, auto-renewable subscriptions will be unaffected, retaining their existing price levels. Developers who manually set their pricing outside Apple's automated equalization will also see no changes.

What Developers Should Do Next

Adapting Pricing and Marketing Strategies

With these tax-related changes, developers should review their regional pricing tiers and analyze how the new VAT adjustments could influence local purchasing power and conversion rates. Countries experiencing price increases, such as Russia and Kazakhstan, may see temporary dips in purchase frequency, while regions with lower taxes (e.g., Türkiye and Ghana) may present new opportunities for pricing optimization or promotional campaigns.

From an ASO (App Store Optimization) perspective, developers should:

• Update app descriptions and promotional messages to align with potential pricing shifts, especially for seasonal or freemium apps.
• Reassess keyword strategies in emerging markets like Mauritius and Bhutan, which are gaining greater App Store infrastructure integration.
• Monitor user feedback and conversion data in App Store Connect to evaluate whether new price points are affecting engagement or retention.

Additionally, marketing teams can leverage this transition period to test localized offers, bundle promotions, and subscription models that better reflect new market conditions.

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Implementation and Developer Access

Apple has already updated App Store Connect to display the new and upcoming price modifications in the Pricing and Availability section.

Additionally, translated versions of the revised agreements will be published on the Apple Developer Website over the next few weeks, ensuring all impacted regions have clear compliance guidance.

Editor's Comments

Apple's pricing adjustments illustrate the increasing complexity of managing digital distribution across rapidly changing fiscal landscapes. By leveraging automated equalization and timely tax data, Apple continues to uphold consistent global pricing—minimizing regional disparities while protecting developer earnings.

For developers and marketers, this serves as both a challenge and opportunity. The key to sustaining growth lies in adaptive ASO, localized pricing sensitivity, and real-time response to tax-driven price movements. As global regulations evolve, aligning pricing strategies with market data will be an essential competitive advantage for visibility and revenue stability.