Apple sent out an email today letting publishers and authors know how it's going to handle the VAT changes for EU customers starting in January 2015.

Basically they say that the prices we put on our books are customer facing and will not be adjusted (Amazon has said they will add the tax to the customer facing price).

What this means is that VAT tax will be taken off the top, then Apple will take their split and the balance will go to the author/publisher.

This will reduce revenue to the author for every book sold on iTunes.

Will authors now raise their prices in the iTunes store, and have different prices in different countries? It will be interesting to see.

For the time being anyway, I will not be increasing my prices in the iTunes store, however we will have to see what the overall impact of this change does to pricing in general.   

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