Apple to impose VAT on SA App Store – report

Tech giant Apple has notified developers it will be imposing 14 per cent value added tax (VAT) on items in the South African App Store, in line with the country’s regulations, according to a report.

9to5mac reports developers have been sent correspondence highlighting the price increases that will see consumers paying higher prices for apps.

“Within the next 24 hours, pricing on the South African App Store will change to account for VAT (Value Added Tax), which has been introduced at a rate of 14 per cent,” the company said.

“Price adjustments on the App Store are made periodically due to the changes in foreign tax rates.”

HumanIPO reported in March the South African National Treasury published amendments to the VAT Act, changing how foreign electronic services would be taxed in the future.

However, the legislation only came into effect on June 1, giving “businesses sufficient time to get their systems ready”.

“There is a need to modernise current governmental processes to better incorporate technological innovations in the electronic services sector and to ensure that South Africa keeps abreast with international developments in this area, and is competitive,” the National Treasury said.

According to the 9to5mac report, it is likely the change in price will affect the iTunes Store as well as the iBookstore in future.

Image courtesy of Shutterstock

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