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Apple’s App Store Tax and Price Updates: App Developer Insights

May 23rd, 2025

Apple’s App Store Tax and Price Updates: App Developer Insights
David Bell

by David Bell

CEO at Gummicube, Inc.

WHAT’S CHANGING AND WHEN

Apple has once again updated its App Store pricing and tax policies across several markets. This time, targeted changes are impacting developers monetizing in Brazil, Kazakhstan, and parts of the European Union. For developers who rely on paid apps or in-app purchases, these changes carry important implications for pricing strategy, App Store visibility, and long-term revenue performance.

Apple’s latest announcement outlines changes taking effect in two waves: beginning May 16 and continuing through August. These updates stem from shifts in international tax law and Apple’s ongoing effort to maintain price consistency across markets based on foreign exchange rates.

Effective May 16

CIDE Tax in Brazil: A new 10% Contribuições de Intervenção no Domínio Econômico (CIDE) tax will apply to developers located outside Brazil. This applies to sales of eligible apps and in-app purchases in the Brazilian App Store.

Proceeds Adjusted: Apple will reduce payouts accordingly for non-Brazilian developers to account for this tax.

Effective June 2

Price Changes for Brazil and Kazakhstan: If you have not selected Brazil or Kazakhstan as your base storefront, Apple will adjust prices in those markets to equalize with the currency value of your current base storefront.

Manual Price Settings and Subscriptions Unaffected: These changes do not apply if you:

  • Use manual pricing across storefronts
  • Sell auto-renewable subscriptions
  • Have selected Brazil or Kazakhstan as your base storefront

These adjustments reflect Apple’s broader strategy to streamline international pricing. However, they introduce more complexity for developers operating across multiple markets.

What’s Coming In August

Another key update arrives August 4, with implications for apps using auto-renewable subscriptions in the European Union.

Consent Required in Austria, Germany, and Poland: Starting August 4, users in these countries must explicitly agree to any subscription price increases before their subscriptions can renew. Apple will notify users through email, push notifications, and in-app alerts until they respond.

No Consent, No Renewal: If the user does not accept the new price before the current billing cycle ends, the subscription will lapse and not renew.

Pre-August 4 Changes Follow Current Rules: Price increases scheduled before August 4 will operate under current notification procedures, even if renewals occur afterward.

This is a significant change for developers depending on subscription revenue. The consent requirement introduces potential friction that could lead to increased churn if not strategically managed.

ASO CONSIDERATIONS: STRATEGY ADJUSTMENTS FOR DEVELOPERS

With tax and price adjustments now layered into multiple markets, developers must adapt their App Store Optimization (ASO) strategy in parallel with pricing updates. These updates are more than just backend accounting—they directly affect how your app is perceived, discovered, and chosen by users. Pricing changes can disrupt keyword rankings, influence conversion rates, and alter how value is perceived in highly competitive categories. As Apple’s price tiers shift based on foreign exchange rates and taxation policy, so must your ASO approach to evolve and preserve performance.

Developers should think beyond simple price adjustments and consider how perceived value aligns with local pricing expectations. An increase in price may not only reduce conversions but also lead to a decline in review sentiment or uninstall rates if users feel caught off guard. Anticipating these reactions through thoughtful ASO alignment is essential.

Below, we explore the practical implications and tactical steps developers should take to protect their visibility and revenue.

Reevaluate Your Base Storefront

Your base storefront dictates how pricing is equalized across countries. If Brazil or Kazakhstan represents a high-value region for your app, you may want to select one of them as your base to gain greater control over future price adjustments. Failure to do so could result in automatic pricing shifts that harm your app’s competitiveness or visibility in these localized storefronts.

Monitor Pricing In High-Revenue Regions

Currency and tax-driven changes can increase prices unexpectedly, potentially deterring new installs or purchases. This is especially true in price-sensitive regions. Developers should actively monitor App Store Connect’s Pricing and Availability section and make proactive adjustments to maintain market share.

If prices shift too aggressively, even temporarily, it could weaken keyword rankings or damage conversion rates. Early detection and price testing can help avoid revenue shortfalls.

Adjust Your ASO Strategy

Visibility, conversion, and retention are influenced by perceived value. If Apple’s updates impact your pricing in a key region:

  • Refresh your app’s screenshots and app store videos to reinforce your app’s value
  • Localize creative and metadata (title, subtitle, and description) elements for Brazil, Kazakhstan, Austria, Germany, and Poland
  • Revisit your app keyword strategy if changes in pricing affect download velocity or category ranking

Even a minor pricing shift can ripple through your ASO funnel. Ensuring your listing reflects the right level of value is critical to weathering market disruptions.

Align Aso Messaging With Subscription Consent Changes

Starting in August, subscription price increases in Austria, Germany, and Poland will require user consent. This shift demands careful coordination across ASO, product, and marketing channels.

Use your title, subtitle, screenshots, and descriptions to communicate the ongoing value of your subscription offer. Highlight premium features, new content, and any enhancements you have delivered. This not only supports the conversion of new users but also reinforces value to existing users who will be prompted to accept pricing changes.

Preparation should extend beyond your App Store listing:

  • Create in-app messaging that introduces the update and underscores ongoing value
  • Incorporate reminders into onboarding flows or feature unlocks
  • Consider segmented email campaigns to build trust and encourage acceptance of new pricing

Consent friction is not just a legal hurdle. It is a moment to either strengthen your value proposition or lose a subscriber. Make sure your ASO and lifecycle messaging work together to retain revenue.

FINAL TAKEAWAYS: WHAT THESE UPDATES MEAN FOR YOUR APP STRATEGY

Apple’s newest round of pricing and tax policy changes brings real consequences for developers—both operationally and financially.

The 10% CIDE tax in Brazil cuts directly into earnings for non-Brazilian developers. Developers who have not selected Brazil or Kazakhstan as their base storefront may see automated price changes that affect their discoverability or competitiveness in those regions.

Meanwhile, the EU consent requirement for subscription pricing introduces a new source of churn risk. Developers must now convince users to stay subscribed, not just through features, but through communication that clearly demonstrates ongoing value.

These aren’t just billing adjustments. They are market shifts that require active management across pricing, localization, and ASO.

To safeguard and grow revenue under these new rules:

  • Reevaluate your base storefront selection in App Store Connect
  • Track regulatory and currency developments in key markets
  • Audit your global pricing models to ensure competitiveness
  • Update your App Store creatives and metadata to reinforce value
  • Coordinate lifecycle marketing around upcoming EU consent prompts

Failing to act could result in stalled growth or unexpected drops in revenue. App developers who stay agile, informed, and strategic will be in the best position to maintain momentum through the next round of App Store changes.

LET’S CHAT!

Wondering how these updates could impact your app’s ASO, conversion, or monetization? Whether you need help crafting value-driven messaging for subscription renewals or creating a new ASO strategy, we’re here to help. Our team of experts will create a winning strategy with our ASO services- reach out today to start the conversation.

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