APPLE

Tax changes imposed by France, United Kingdom and Italy penalize european developers on the app store

Apple has adjusted its developer revenue formula in several countries. The reason was changes in tax rules. Several governments have introduced new taxes for technology companies. This is reported on the website of the platform holder.
Tax changes in European countries:
-French authorities have introduced a new 3% digital tax;
-The Italian authorities have introduced a new digital tax of 3%;
-The UK authorities have introduced a 2% VAT tax.
In addition, Apple will change the way it calculates developer revenue in Chile, Mexico, Saudi Arabia and Turkey. The authorities of all the countries above have also raised taxes. The exception was Germany, where the authorities reduced VAT by 3% (from 19% to 16%). In eastern countries, the company is offsetting costs by raising prices on the App Store
The discussion of a new digital tax in Europe has been going on for several years. European authorities are unhappy that American IT giants pay very little tax in the territories where they operate and maintain their profits in other jurisdictions.
The United States opposed the digital tax - Finance Minister Stephen Mnuchin argues that the new requirements should apply to all sectors. In June, American officials announced their withdrawal from the discussion. For them, the negotiations are at an impasse. Despite this, French Finance Minister Bruno Le Mer took these actions as a provocation and said European countries are still planning to introduce new taxes.

AVnews