Starting January 1, 2015, value-added tax (VAT) for the sale of digital content in the European Union (EU) is determined based on the purchaser's country. Google is responsible for determining, charging, and remitting VAT for Google Play Store purchases, so publishers do not need to take any action to comply with this law.
Tax inclusive prices: If you provide tax inclusive prices for sales in the EU, your revenue will normally be higher, as we will deduct the local tax rate rather than the 23% we previously deducted (the rate for Google's location in Ireland).
Effect on revenue share
Tax exclusive prices: If you provide tax exclusive prices for sales in the EU, your revenue share will not change, because revenue share has always been calculated on a tax exclusive basis.Tax inclusive prices: If you provide tax inclusive prices for sales in the EU, your revenue will normally be higher, as we will deduct the local tax rate rather than the 23% we previously deducted (the rate for Google's location in Ireland).