Apple on Tuesday introduced a new feature called “Tax Category” to App Store Connect, which is the platform used by developers for submitting apps to the App Store. With this new option, developers can easily determine taxes for different content or regions.
As Apple pointed out on the Apple Developer website, the company manages the fees on behalf of developers in 64 of the 175 territories where the App Store is available. However, developers can now easily assign taxes based on app content and also find out which tax regulation applies in each territory.
To assign a category to your apps, visit the Pricing and Availability section in App Store Connect. Categories can be defined for apps or also for individual in-app purchases. Apple says the adjustments will be applied for future transactions with more details available in the next Transaction Tax report.
Now App Store Connect provides the ability to assign tax categories to your apps and in-app purchases. These categories are based on your app’s content (for example, videos, books, or news publications) and determine which tax regulations apply in each territory, allowing Apple to administer tax for you at specific rates.
If a developer does not update the rate settings, Apple will keep the same tax rate currently used based on the App Store software category.
More information about the tax categories can be found in the App Store Connect Help.
If you choose not to make any changes, your apps and in-app purchases will be assigned the App Store software category at the same tax rate used today. Adjust these settings at any time as the characterization of your apps or in-app purchases evolve or as tax legislation changes.
