Apple Updated In-App Purchases & Subscriptions for Select Territories

September 5th, 2025

by Anh Nguyen

COO & Co-Founder at Gummicube, Inc

Apple periodically updates its App Store policies, pricing structures, and tax collection practices to ensure global consistency. While these updates are rooted in compliance with tax regulations and foreign exchange standards, the ripple effect extends to developers.

On August 21, 2025, Apple announced tax and price updates impacting in-app purchases and subscriptions across select territories. For app developers, these changes can affect proceeds and pricing structures and could potentially carry important implications for App Store Optimization (ASO) strategies.

Building a cohesive ASO strategy means optimizing app metadata and creatives and staying ahead of structural changes within the App Store. Price shifts and tax updates may feel administrative, yet they could influence purchase behavior or app subscriptions over time, especially if an update occurs for a region you have localized your app in.

In this week’s App Store News, we will review Apple’s latest announcement, explore the markets affected, and examine how developers should adapt their strategies to maintain app visibility.

AN OVERVIEW OF APPLE’S ANNOUNCEMENT

Apple announced that effective August 21st, proceeds from the sale of eligible apps and in-app purchases have been modified in several territories. These changes are tied to new or update taxes, Value Added Tax (VAT) increases, and in certain regions, shifts in how Apple remits proceeds.

The key Apple updates include:

Brazil: An Imposto Sobre Operacoes Financeiras (IOF) of 3.5 percent has been added
Canada: The digital services tax (DST) is no longer applicable, providing a potential boost to proceeds.
Estonia: VAT has increased from 22 percent to 24 percent.
Romania: VAT increased from 19 percent to 21 percent, with the reduced VAT rate on news, magazines, books, and audiobooks rising from 5 percent to 11 percent.
The Philippines: A 12 percent VAT has been introduced for developers based outside of the Philippines.
Vietnam: Multiple updates include:
- VAT increased from 5 percent to 10 percent for organizations based outside of Vietnam.
- Replacement of corporate income tax with personal income tax (PIT) for individual developers outside of Vietnam, set at 5 percent.
- Elimination of reduced VAT rates for news, magazines, and books, now taxed at standard rates.
- Introduction of new remittance structures for organizations and individual developers based in Vietnam, including PIT at 2 percent and a 5 percent foreign contractor tax (FCT) on Apple’s commission.

In addition, Apple updated its Paid Applications Agreement to reflect these changes and clarified that pricing for apps and in-app purchases in the Philippines and Vietnam will automatically update starting September 8, 2025, unless developers have designed these storefronts as their base.

Apple will adjust prices to reflect local tax and exchange considerations. Subscriptions set as auto-renewable will remain unaffected unless developers choose to manually adjust them.

WHY THESE CHANGES MATTER BEYOND COMPLIANCE

Pricing influences the customer journey, from discovery to retention. An increase in VAT or local pricing can impact perceived affordability and willingness to subscribe. Which could, in turn, influence your app’s conversion rates.

For example, users in Romania may perceive a sharper price increase in digital content such as audiobooks or magazines, where the reduced VAT rate has doubled. In Vietnam, the broader restructuring of VAT and PIT creates a new dynamic for local developers, balancing profitability and competitive pricing. Even in markets like Canada, where taxes have been removed, developers must consider how proceeds are reflected in reinvestment for their growth and marketing.

This news reinforces the importance of monitoring not just metadata and performance of your app listing, but also the economic environment in which an app competes. Price sensitivity differs across territories, and ASO strategies must account for localized behavior.

ASO IMPLICATIONS

ASO is often framed around two pillars: app visibility and conversion rates. Tax and pricing changes can intersect with both of these factors.

App Visibility

If an app’s price increases in one market, it may shift how users compare alternatives, especially in subscription-heavy verticals like streaming, fitness, or education apps. A cohesive ASO strategy requires ongoing competitor analysis to ensure pricing remains aligned with perceived value, especially if your app is localized for different regions.

App Conversion Rates

Conversion rates cannot be controlled directly, but app developers can do their best to optimize their listings to be as competitive as possible. While developers cannot avoid taxes, they can manage perceptions through optimized product pages. Clear value communication in your app listing can help offset any hesitation surrounding increased costs. Highlighting unique features or benefits could help reduce any sensitivity involving pricing for your app or subscriptions.

App Localization

Tax updates underscore why proper localization is critical in ASO. Localization goes beyond translating your metadata and creatives into a different language. Understanding purchasing behavior in each region is imperative in tailoring your creative assets and messaging to resonate with your audience.

STAYING COMPETITIVE WITH ASO BEST PRACTICES

While Apple’s update highlights the importance of understanding local tax and pricing changes, these adjustments are just one piece of a larger picture. Developers who want to stay competitive cannot focus solely on process and pricing structures. Long-term success can depend heavily on the work it takes to create a data-driven and adaptable ASO strategy.

App Creative Optimization

Your app’s first impression is often your creative assets. Screenshots, app store videos, and icons can often be a deciding factor for whether a user installs or scrolls past your app listing. Be sure to regularly optimize your visuals in order to reflect trends, seasonal themes, or updated features.

App Metadata Optimization

Keyword targeting and metadata refinement play a major role in your app’s visibility and how they are found in search results. Use ASO tools to help with keyword research in order to make data-driven decisions in your app’s title, subtitle, screenshots, and description.

App Listing A/B Testing

User behavior is constantly shifting. A/B testing your app listing elements allows developers to validate creative or metadata decisions in real time. By experimenting with alternative screenshot designs, screenshot order, and title or subtitle messaging, developers can uncover what resonates best with their target audience. A/B testing takes the guesswork out of ASO and gives developers confidence in their next move.

FINAL THOUGHTS

Apple’s August 2025 announcement demonstrates how developers must stay up-to-date on all updates in the app stores. This most recent pricing update may be applicable to select regions, but it reminds developers to always stay alert and ready for a shift in the marketplace. Staying competitive in the app marketplace starts with a strategic, data-driven ASO strategy. These strategies must be a part of your regular routine, instead of just being thought of as a one-time effort.

LET’S CHAT!

If you need help navigating the evolving landscape of the App Store, Gummicube’s ASO services can elevate your app listing and help you stay competitive. From localized keyword optimization to creative mobile app A/B testing, we can provide opportunities for your app to stay prepared and ready to grow with this evolving market. Contact us today to learn how tailored ASO strategies could help your app reach its full potential.

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