Prices in the App Store and iTunes in the UK May Increase by up to 20%
There may be a price increase next year in Apple’s App Store and iTunes downloads when new UK laws take effect. According to The Guardian, the budget that was recently introduced closes a loophole that let digital downloads get away with UK taxes. The document stated:
As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue.
Currently, digital download retailers Amazon and Apple, avoid UK’s 20% VAT because they sell from countries like Luxembourg where the tax rate is only 3% to 15%. When the new law takes place, UK customers will be seeing higher tax rates, at 20% for downloads. The least affected may be apps because it is already currently being taxed at the higher range of 15%, therefore, there would only be a 5% increase.
The change will take affect starting January 1, 2015, and will affect all digital downloads ranging from music to e-books and apps.
Source: The Guardian
This article was originally published in forum thread: Prices in the App Store and iTunes in the UK May Increase by up to 20% started by Akshay Masand View original post
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