Apple will raise App Store prices in Japan due to tax changes

Apple today announced to developers some upcoming App Store pricing changes in Japan as a result of higher taxes in the country. According to the company in a post to Apple’s Developer website, starting in October 2019, the Japan Consumption Tax (JCT) will increase from 8% to 10%. This will make apps and in-app purchases available on the App Store more expensive for Japanese customers, except for auto-renewable subscriptions.

Despite that, the increase in prices will be minimal. “Tier 1” apps will remain the same, while “Tier 2” will increase from ¥240 to ¥250 and “Tier 3” from ¥360 to ¥370.

All the apps available in Japan will be automatically updated with the new pricing tier. Apple also says it will not administer the collection of taxes and remittance of the Japan Consumption Tax. Developers will be responsible to collect and remit sales tax as required by local law.

The full letter Apple is sending to developers can be read below:

When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store. Starting October 2019, the Japan Consumption Tax (JCT) will increase from 8% to 10%, resulting in a price increase for apps on the App Store and in-app purchases (excluding auto-renewable subscriptions) in Japan. Once the change goes into effect, the Pricing and Availability section of My Apps will be updated and your proceeds will be increased accordingly. You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. For subscriptions, you have the option to preserve prices for existing subscribers.

Note that Apple does not administer the collection and remittance of JCT applicable to sales to customers purchasing content on the App Store in Japan. You will continue to be responsible for the collection and remittance of such taxes to the appropriate tax authorities, as may be required by local law.

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