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If you’re being charged for something by Apple that you don’t understand, you’re not alone. Many people have questions about Apple’s charging practices, and we’re here to help clear things up.
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In-App Purchases
Non-Consumable In-App Purchases
Non-consumable in-app purchases are one-time purchases that unlock features or content within your app. Once a customer makes a non-consumable purchase, they will have access to that content forever. These types of purchases are good for premium content, subscriptions, storage, and cloud services. You can offer non-consumable in-app purchases for as little as $0.99 or as much as $999.99.
Consumable In-App Purchases
When you make a Consumable In-App Purchase, you use or consume the content immediately. For example, if you purchase coins in a game or additional lives in a game, you use those items when you play the game. Once you use all of the consumable items, you can purchase more.
Non-consumable In-App Purchases
Non-consumable In-App Purchases are ones that you only have to buy once. An example of this would be an app that removes ads. You make the purchase, and then the ads are gone forever. Other examples might be upgrading to a premium version of an app or unlocking certain features in an app.
Subscriptions
If you’re being charged for a subscription, but you don’t see it in your list of subscriptions, it might be billed through someone other than Apple. If so, you should be able find the subscription in your account with that company.
Subscriptions that are billed through Apple can be viewed in apple id account settings.
To view and manage your subscriptions from your iPhone or iPad, go to Settings > [your name] > iTunes & App Store. Under Subscriptions, select Manage Subscriptions. You can do the same thing on a Mac or PC in iTunes:
Open iTunes Sign in with apple id From the menu bar at the top of your screen or the top of the iTunes window, choose Account > View My Account. On the Account Information page, scroll down to Settings and click Manage next to Subscriptions.
App Store Fees
With every purchase made through the App Store, Apple charges a 30% fee for all digital goods and services. For some, this 30% cut may not seem like much. Others, however, may feel that Apple is taking advantage of its users. Let’s take a closer look at this fee and whether or not it’s fair.
Apple Developer Program Membership Fee
An Apple Developer Program membership is required to distribute apps on the App Store. The annual fee is $99 and it must be renewed each year. Apple Developer Program membership includes access to beta versions of iOS, macOS, tvOS, and watchOS software, as well as developer forums and advanced app capabilities.
If you’re developing an app for macOS, you can also sign up for the Macintosh Developer Program. The annual fee is $499 and it includes all benefits of an Apple Developer Program membership, plus additional resources for developing on macOS.
App Store Commission
As a reminder, the App Store commission is a 30% revenue share that is charged for all digital goods and services sold through the App Store, including in-app purchases, subscriptions, and paid apps. In-app purchases are also subject to a 7% value-added tax (VAT) in some countries.
Apple commission fees are generally deducted from the total amount of your sale, including any VAT. For example, if you sell a digital good or service for $1.00 USD in an eligible country, Apple will deduct $0.30 USD as a commission fee, plus any applicable VAT.
The following sections provide more information about how commissions are calculated and what types of transactions are subject to commission fees.
Commission Fees
Apple charges a commission fee on all eligible digital goods and services sold through the App Store, including in-app purchases, subscriptions, and paid apps.
The commission rate for most items is 30% of your net sales proceeds*, but some items have a reduced commission rate of 15%.* The following types of items have a reduced commission rate:
-Subscriptions to your app or service that renew automatically**
-In-app purchases that allow users to access virtual goods or content in your app (e.g., game currency or expansion packs)**
-Paid apps that provide access to additional content or services (e.g., subscriptions to news or video channels)**
* Net sales proceeds are the total amount of your sale minus any applicable taxes. See “Taxes” below for more information.
** These types of transactions are also subject to VAT in certain countries. See “Value-Added Tax (VAT)” below for more information
iTunes Connect Fees
If you’re an iOS developer, you probably know that Apple charges $99/year for a developer account. But what you might not know is that Apple also charges $0.30/transaction for in-app purchases. So, if you’re selling a $0.99 app, Apple will take 30 cents out of that.
iTunes Connect Developer Fee
If you’re new to developing for Apple platforms, you can learn about different types of development programs and accounts that are available. If you’re ready to distribute apps to customers, the App Store offers a great opportunity to reach millions of potential customers.
To submit your first app to the App Store, you must enroll in the Apple Developer Program. Enrolling in the Apple Developer Program is free. Once you’ve enrolled, sign in to iTunes Connect with your developer account credentials to access resources and submit your apps.
iTunes Connect is a suite of web-based tools for managing apps sold on the App Store. As a member of the Apple Developer Program, you’ll use iTunes Connect to submit and manage your apps, invite users to test with TestFlight, add tax and banking information, access sales reports, and more.
When you enroll in the Apple Developer Program or register as an individual developer, you’ll be asked to agree to the iTunes Connect terms and conditions. One of those terms is that developers must pay a $99 USD membership fee each year.
Taxes
The tax system is a method the government takes money from its citizens through different means. The system is also a tool to facilitate the government in its spending. This is why you may find yourself being charged taxes on different items.
US Sales Tax
Apple is required to collect sales tax on orders shipped to customers in the United States. The tax rate applied to your order will generally be the combined state and local sales tax rate for the address where your order is being delivered. To see the sales tax that may be applied to your order, please view your shopping cart. The total estimated taxes will be displayed on the Order Summary page prior to placing your order.
Some states require that we charge local sales tax on the full amount of the order, even if the item is shipped out of state. This is because a portion of our business activity takes place in each state, including but not limited to: Solicitation of orders through representatives or agents; Advertisement in newspapers and magazines; Maintenance of a website from which you may place orders; Fulfillment and shipping of orders from distribution centers
VAT and Other International Taxes
When you purchase items from the iTunes Store, App Store, or iBooks Store in certain countries or regions, you might be charged VAT (value-added tax) or other taxes based on the price of the item. For example, if you’re located in the European Union, Norway, or Switzerland and you purchase an app for $0.99, Apple might charge you an additional $0.08 VAT based on your country’s VAT rate.
If you’re being charged VAT or other taxes based on the price of an item and you believe that the tax shouldn’t have been applied to your purchase, please contact Apple.
