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  • 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
    Comments 9 Comments
    1. Mc-Lovin_341's Avatar
      Mc-Lovin_341 -
      I'm sorry but I will stop purchasing music if this is the case, I already pay £2000 a year tax and I'm sick off seeing all these people on job seekers who have no intention of working because the get more on dole.
    1. *T*'s Avatar
      *T* -
      Quote Originally Posted by Mc-Lovin_341 View Post
      I'm sorry but I will stop purchasing music if this is the case, I already pay £2000 a year tax and I'm sick off seeing all these people on job seekers who have no intention of working because the get more on dole.
      What a cohesive sentence you have there.
    1. Karlanthonyuk's Avatar
      Karlanthonyuk -
      Quote Originally Posted by Mc-Lovin_341 View Post
      I'm sorry but I will stop purchasing music if this is the case, I already pay £2000 a year tax and I'm sick off seeing all these people on job seekers who have no intention of working because the get more on dole.
      +1
    1. ProfessorJack's Avatar
      ProfessorJack -
      +2 ill go to amazon
    1. Gervs's Avatar
      Gervs -
      Quote Originally Posted by ProfessorJack View Post
      +2 ill go to amazon
      The law will apply to all digital sales so amazon will also be affected.
    1. windowsdan's Avatar
      windowsdan -
      I do hate this country!! Taxed on wages, taxed on buying a car to get to work, taxed on the fuel I put in it, taxed with the road tax I have to put on it, taxed on insurance I have to have to legally drive it, taxed on the MOT that is also legally required, etc. etc. I pay about £2,000 a month in tax and, no, I am not a large earner! Who could be in this country. Just cause I have one vice, smoking, I have to pay so much tax on it that it is 1 1/2 hours work on minimum wage to buy on 20 cigarettes!!!! (For American people, 20 cigarettes costs us $14.17

      Looks like I might give up buying music and apps now too. Better still, increase the speed at which I am saving to emigrate out of this rubbish country!
    1. jtanner's Avatar
      jtanner -
      Quote Originally Posted by windowsdan View Post
      I do hate this country!! Taxed on wages, taxed on buying a car to get to work, taxed on the fuel I put in it, taxed with the road tax I have to put on it, taxed on insurance I have to have to legally drive it, taxed on the MOT that is also legally required, etc. etc. I pay about £2,000 a month in tax and, no, I am not a large earner! Who could be in this country. Just cause I have one vice, smoking, I have to pay so much tax on it that it is 1 1/2 hours work on minimum wage to buy on 20 cigarettes!!!! (For American people, 20 cigarettes costs us $14.17

      Looks like I might give up buying music and apps now too. Better still, increase the speed at which I am saving to emigrate out of this rubbish country!
      I strongly agree! You'd need an entirely new thread purely for UK Government / Tax debates etc, but this government is certainly failing Britain
    1. se23's Avatar
      se23 -
      Remember when cinema was cheap and we used to go about 3 times a month even if the films were crap! Prices went up insanely so everybody pirates. What do the gov think will happen when prices of apps go up? I didn't mind spending £269 on both my kids iPads because in the long run it worked out cheaper on software.....you see where I'm going with this but I guess it's just business right? After all the uk citizens were outraged that Apple, Amazon etc paid so little tax so is the gov just listening to their cries?
    1. Robertsdp's Avatar
      Robertsdp -
      Wouldnt it be possible to use a VPN service and then purchase the music/apps? That way in essence you would be purchasing the items from another country and to another country? avoiding the UK entirely...