Beginning 1 July 2017, due to a change in Goods and Services Tax (GST) laws in Australia, Google will be responsible for determining, charging and remitting a 10 percent GST on Google Play Books purchases by customers in Australia on behalf of most partners (see exclusion below).
Google will apply this change to all paid books purchases made by customers in Australia. (If you are on agency terms with Google Play Books and your business is located in Australia, you will remain responsible for determining, charging and remitting GST for Google Play Books purchases by Australian customers, as applicable.)
This change may affect your earnings on sales to customers in Australia, as follows:
- Tax exclusive prices: If you provide tax exclusive prices for Australia (AU), your revenue share for sales in Australia will not change, because revenue share has always been calculated on a tax exclusive basis. However, customers will need to pay the tax, and so the effective price of your books will increase.
- Tax inclusive prices: If you provide tax inclusive prices for Australia (AU), your revenue for sales in Australia will decrease by roughly 10 percent, as we will deduct the 10 percent GST from the List Price before calculating the revenue share.