Due to new laws, digital retailers such as Apple, Amazon, and various others may have to increase their prices by up to 20% to comply with new VAT laws. According to The Guardian:
The budget document said: “As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue.”
Large companies currently get around the UK’s 20% VAT rate by selling their digital goods from countries within Europe that have lower rates. That trick, under the updated law, would be illegal.