Steve Jobs Weighs in on iPad International Pricing and Taxes - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Steve Jobs Weighs in on iPad International Pricing and Taxes

220232 ipad uk

With Apple's announcement on Friday regarding availability of the iPad in nine new countries later this month, a number of potential customers expressed dismay at the apparent higher prices in those countries relative to those in the United States. Several of those customers took the time to email Apple CEO Steve Jobs with complaints on the issue, two of whom shared his identical responses with us.

Please educate yourself. UK prices must by law include VAT, which is around 18%. US prices do not include tax.

Value added tax (VAT) is similar to the sales tax that is familiar to most residents of the United States, but is applied uniformly throughout the country for a given type of item and is included in the advertised pricing. Sales tax in the United States is not included in advertised pricing, as it varies significantly by region, even down to the municipality level.

The standard VAT rate in the UK is 17.5%, meaning that the 429 base price for the 16 GB Wi-Fi iPad in the UK is actually only 365 in "pre-tax" pricing. At current exchange rates, this corresponds to approximately $540 in the United States, or an approximately $40 premium for U.K. customers. While the price difference is not insignificant, it is considerably smaller than it might appear at first glance.

Apple has long offered somewhat higher international pricing on his products than it does in the United States, even accounting for difference in taxation practices. These differences are possibly due to increased overhead for distribution and "cost of business" in other countries, as well as the need to account for foreign exchange rates that can fluctuate over time.

Meanwhile, users in Germany have discovered that their iPad prices are higher than in other European countries, even when accounting for tax differences. At least one reader also emailed Jobs about this issue and reported to fscklog that he noted a special copyright tax imposed by the government there.

Blame your government. Germany just added a new copyright levy for computers.

The report notes that iPad prices in Germany are about 15 euros higher than those in France and Italy, with the extra copyright tax being applied due to the iPad's classification as a "PC without burner".

Popular Stories

iOS 27 on iPhone 17 1

iOS 27 Will Add These New Features to Your iPhone

Saturday May 2, 2026 8:43 am PDT by
Apple is expected to unveil iOS 27 during its WWDC 2026 keynote on June 8, and there are already many rumored features and changes for iPhones. The first developer beta of iOS 27 will likely be available immediately following the keynote, and a public beta typically follows in July. Following beta testing, the software update should be released to all users with a compatible iPhone in...
Apple Event Logo

Apple Just Released a New Accessory

Monday May 4, 2026 8:13 am PDT by
Apple today released a new Pride Edition Sport Loop for the Apple Watch. The band features a rainbow design with 11 colors of woven nylon yarns. The new Pride Edition Sport Loop is available to order now on Apple.com and in the Apple Store app in 40mm, 42mm, and 46mm sizes, and it will be available at Apple Store locations starting later this week. In the U.S., the band costs $49. There...
Apple Announces 2026 Pride Band Watch Face and iPhone Wallpaper Article 2

iOS 26.5 Coming Soon With These New Features

Monday May 4, 2026 8:40 am PDT by
iOS 26.5 is expected to be released next week, following more than a month of beta testing. The update is relatively minor, but there are a couple of new features and changes across the operating system that we have recapped below. iOS 26.5 lays the groundwork for end-to-end encryption for RCS in the Messages app and ads in the Apple Maps app, and it will include a new Pride wallpaper and a...
Related Apple News: Travel | Iphone | South Africa | Health | Ipad