If you are building an AI or SaaS product with an iOS app in the EU, 30% is no longer the fixed cost of doing business on the App Store. The Digital Markets Act changed the options available to you. It did not make the decision simple.
EU iOS developers have three ways to cut Apple's cut on digital subscriptions: sell on the web and only authenticate in the app (Web2App, 0% to Apple), qualify as a reader app (0%), or use an in-app external link (about 10 to 20% to Apple in the EU as of 2026). Each path makes you the seller of record.
This article breaks down every path, what each one actually costs (the full stack, not just the headline rate), and how to choose based on your app.
What changed and why 30% is no longer the only number
Apple's 30% commission is still real. It still applies to any app running Apple's native in-app purchase (IAP) without the small business discount or the one-year subscription rate. But for apps distributed in EU storefronts, it stopped being the only number in March 2024, when Apple published new fee structures and entitlements to comply with its Digital Markets Act obligations.
The Digital Markets Act (DMA) required Apple to allow EU developers to link to external payment flows and use alternative billing methods. Apple's response was a set of new contractual terms, two addenda covering different commitment levels, and a tiered fee structure based on which App Store services a developer uses. The headline number changed. The underlying question, what it actually costs to leave IAP, got more complicated.
The three paths at a glance
Two questions determine which path applies to your app.
First: where does the purchase happen? A payment made on the web, outside the app, sits entirely outside Apple's fee calculations. A payment triggered inside the app depends on your app type. If your app is not a reader app, you are permitted to open checkout in an in-app browser – that triggers Apple's external fee stack. If your app is a reader app, in-app browser checkouts are not allowed at all; the transaction must complete on the external web, fully outside the app
Second: does your app qualify as a reader app? If the app's purpose is giving users access to content they bought elsewhere (news, books, audio, video), Apple offers a separate entitlement that allows one in-app link to the website at 0%.
Those two questions produce three working paths for EU founders.
Web2App. The user subscribes and pays on the web. The app authenticates them and unlocks access. No link inside the app, no Apple entitlement required, no Apple fee.
Reader App entitlement. For content apps in eligible categories. One in-app link to the website for sign-in and account management. No Apple IAP in the same app. Zero Apple fee.
In-app external purchase link. A link inside the app routes the user to an external payment flow. How that flow opens depends on your app type: if your app is not a reader app, you are permitted to open checkout in an in-app browser; if your app is a reader app, in-app browser checkouts are not allowed, and the user must complete the purchase on the external web outside the app entirely. Either way, this requires Apple's External Purchase Link Entitlement, a disclosure sheet shown before the user exits the app, and monthly transaction reporting to Apple. Apple charges a fee stack on every sale
What each path costs in the EU right now
For Web2App and Reader App, the Apple cost is zero.
For in-app external links, the total depends on which tier of Apple store services the app uses.
Path | Apple fee (mid-2026) |
|---|---|
Web2App | 0% |
Reader App entitlement | 0% |
External link, Tier 1 store services | 10 to 12% |
External link, Tier 2 store services | 18 to 20% |
Apple IAP, standard | 15 to 30% |
Tier 1 covers app delivery, App Review, trust and safety, and exact-match search. Tier 2 adds App Store discovery: ratings and reviews, broad-match search, personalized recommendations, editorial featuring, and analytics dashboards. Apps that acquire customers through their own funnel rather than App Store search can apply to move to Tier 1. The switch is allowed once per quarter, per storefront.
The external link fee is built from three components: an initial acquisition fee (2%, or 0% at the reduced rate) applied to purchases within six months of install; a store services fee (5% for Tier 1, 13% or 10% reduced for Tier 2); and a Core Technology Commission of 5%.
Under the Alternative Terms Addendum, the Core Technology Commission converts to a flat 0.50 EUR per install above one million installs per year. For most early-stage apps, that threshold is never reached, making the Alternative Terms cheaper per transaction. Whether the broader contractual commitment that comes with those terms is appropriate is a legal and finance decision specific to your situation.
The rule nobody mentions: no IAP and external links in the same app
This does not appear prominently in most coverage, but it is the constraint that catches founders unprepared. Once an app uses the External Purchase Link Entitlement, it cannot also offer Apple IAP for the same digital goods. The two coexist only under conditions Apple has not made broadly available. In practice, choosing the external link path means replacing IAP.
This matters most for apps with existing subscribers on Apple IAP. Moving them to an external payment path requires planning around subscription continuity, the billing relationship, and how the transition is communicated to users. None of that is a reason to avoid the switch. It is a reason to schedule it properly rather than treat it as a configuration change.
The part the fee tables leave out
Fee comparisons focus on the headline rate. The headline rate is not the full cost.
When a purchase runs through Apple IAP, Apple is the seller of record. It handles refunds, disputes, VAT across EU member states, and the entire billing relationship with the customer. The developer receives a net payout.
When a purchase runs outside Apple IAP, whether through Web2App, a reader app, or an external purchase link, the developer or their platform becomes the seller of record. That transfers several obligations.
VAT. Digital services sold to EU consumers require VAT registration or a compliant VAT mechanism across EU member states. Rates vary by country. This obligation does not disappear because Apple is no longer collecting it.
Refunds. The policy, the decision, and the processing now belong to the seller.
Chargebacks. Card disputes go to the seller, not to Apple.
Billing infrastructure. Subscription logic, failed payment recovery, and renewal handling need to live in your stack or your platform's stack.
These obligations do not erase the savings from leaving IAP. For a SaaS product at meaningful revenue, the math still favors external payments by a significant margin. But the correct comparison is Apple's 30% against Apple's 0 to 20% plus the cost of owning the compliance and billing layer.
Where a merchant of record fits
Web2App is the path most commonly recommended: zero Apple fee, no entitlement, no reporting. That recommendation sometimes skips the next question. Who owns the billing and compliance layer that Apple used to handle?
A merchant of record (MoR) takes that role. The MoR is the legal entity that handles VAT registration and remittance across jurisdictions, disputes and chargebacks, and the billing infrastructure including subscription logic and payment recovery.
For founders who want the economics of Web2App without building a payments and compliance stack from scratch, an MoR is the practical option. tiun is one option in this category. It operates as an EU-native MoR with a Swiss legal entity, handles VAT across EU countries, and for founders using the in-app external link path, pre-formats the monthly Apple transaction report in Apple's required file structure so the developer signs and files it rather than building the reporting layer.
An MoR charges a fee. The question is whether that fee, combined with a reduced or zero Apple cost, produces better unit economics than Apple IAP alone. For most SaaS apps past early growth, the answer is yes.
How to choose by app type
Pure SaaS or AI tool with a web product. Web2App is almost always the right starting point. Users subscribe and pay on the web. The iOS app authenticates them. Zero Apple fee, no entitlement, and no monthly reporting to Apple. The billing stack lives entirely outside the App Store.
Content app (news, books, audio, video). Check whether the Reader App entitlement applies. If the app's core purpose fits the eligible categories and no IAP is in the same app, this is a clean 0% path with an in-app link permitted for account management.
App where in-app conversion is core to the funnel. If moving the purchase to the web would materially harm conversion and cannot be restructured, the external link path is the option. Move to Tier 1 if App Store discovery is not your primary acquisition channel, and run the full cost stack (including VAT and disputes) before comparing it to your current IAP rate.
Frequently asked questions
Can I switch from Apple IAP to external payments for existing subscribers?
Yes, but it is a migration, not a toggle. Existing subscribers on Apple IAP stay on Apple's billing until their subscription lapses or you actively move them. You cannot apply the External Purchase Link Entitlement and simultaneously retain IAP for the same digital goods. The practical approach is to grandfather existing subscribers on IAP, stop new IAP subscriptions, and route all new sign-ups through the external path. Plan for subscription continuity communication well before the cut-over date.
Does Web2App work if my iOS app has any in-app purchase at all?
Web2App is not an entitlement and has no formal Apple approval process. It simply describes an architecture: subscription and payment happen on the web, the app authenticates the user and delivers access. If your app contains no IAP and makes no in-app purchase requests, there is nothing for Apple to review or restrict. The constraint is that your app cannot prompt the user to pay inside the app, display pricing, or use Apple's payment sheet. If any of those exist, you are in external link territory, not Web2App.
What exactly do I have to report to Apple under the external link path?
Every month, you file a transaction report to Apple covering all external purchases made by users who arrived via your external purchase link. The report is a structured JSON file submitted to Apple's External Purchase Server API, signed with your App Store Connect private key, and due within 15 days of the end of each calendar month. The report includes transaction IDs, amounts, currencies, and purchase dates. Apple uses it to calculate and invoice the store services fee. Missing a filing or filing incorrectly can result in your entitlement being revoked. Platforms like tiun pre-format this report in Apple's required structure, so the developer signs and submits rather than building the reporting pipeline.
Do these EU external payment rules apply if my app is also on the US App Store?
No. Apple's DMA-driven external payment options apply only to apps distributed on EU storefronts. In the US, a separate legal process is underway following the Epic v. Apple case. As of mid-2026, US developers can include an in-app link to an external website for purchases, but the fee and entitlement structure is different from the EU framework. If your app operates across both regions, you may need separate payment architectures per storefront. The EU paths described in this article do not carry over to the US automatically.