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

Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple's iPhone Driver's License Feature Now Available in 11 U.S. States

Tuesday September 30, 2025 6:40 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
maxresdefault

New iPad Pro With M5 Chip Leaked in Unboxing Video

Tuesday September 30, 2025 8:39 am PDT by
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom. The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak. Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
fcc vision pro leak

FCC Accidentally Leaks Apple's Next Vision Pro

Tuesday September 30, 2025 3:48 pm PDT by
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset. One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro. The FCC's uploads are transmission tests, SAR test reports, and...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
macbook pro prime day 2025

FCC Leaks Upcoming MacBook Pro and More

Tuesday September 30, 2025 1:58 pm PDT by
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch. The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
space black mbp

Here's Every New Apple Product That Leaked Yesterday

Wednesday October 1, 2025 8:27 am PDT by
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests. The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...