Apple recently told developers that App Store Connect provides new features to help developers assign tax categories to apps and in-app purchases. Apple pointed out that developers need to assign tax categories based on the content classification of the app (such as videos, books, or news publications, etc.) and the tax regulations applicable to each region.
To assign tax categories, developers need to visit the Price and Sales Range section of the App in App Store Connect. Developers can choose the most appropriate category for each App, and this category will be applied to the App and all its associated in-app purchases. If necessary, developers can also manage each in-app purchase individually.
According to reports, the developer’s choice will be applied to future transactions. One month after the tax category is set, developers will be able to view the new transaction tax report. If the developer chooses not to make any changes, the tax category of the App and its in-app purchases will default to App Store Software and will be calculated at the same tax rate currently used. If the tax nature of the developer’s app or in-app purchases changes, or the relevant tax regulations change, the tax category needs to be revised accordingly.