Tax and compliance settings for paid apps, subscriptions, and in-app products

If you’re distributing a paid app, or if your app offers subscriptions or in-app products, you may need to provide information about the product that you’re distributing for consumer law or tax purposes.

You can provide this information in the "Tax and compliance" section when setting your apps prices in Play Console, and when managing prices for subscriptions or in-app products.

Providing tax and compliance information in Play Console

You can set and manage prices from the following pages in Play Console:

  • App pricing (Monetize > Products > App pricing)
  • In-app products (Monetize > Products > In-app products > Create product or View in-app product)
  • Subscriptions (Monetize > Products > Subscriptions > Create subscription or View subscription > Edit subscription details)

When setting your apps prices, and when managing prices for subscriptions or in-app products, the selections listed below are available in the “Tax and compliance” section. Any adjustments that you make to the tax categorization and associated tax treatment of your products will take effect only for future transactions.

Digital Content or Service classification

If your app can be distributed to users in the European Economic Area (EEA), you must tell us whether your product is Digital Content or Service.

You must consult the Directive 2011/83/EU of the European Parliament and of the Council and the Directive (EU) 2019/770 of the European Parliament and of the Council to determine if your product should be classified as a "Service' or as a "Digital Content." If in doubt as to whether your product is  Digital Content or Service, you can classify it as a "Service.'

Note: The withdrawal regime under EEA consumer laws depends on this classification. For products classified as Digital Content, the right of withdrawal will be excluded. Products classified as a "Service" are eligible for a refund within 14 days of purchase.

Reduced VAT rates

Developers who sell digital news, magazines, newspapers, books, video, music, audio, or audiobooks in various countries/regions may be eligible for reduced VAT rates. It is your responsibility to evaluate local regulations to determine your eligibility.

Once you have determined any reduced rates you qualify for, you can select the appropriate rates for each country/region where you are eligible.

Important: Your app must be in the appropriate category (for example, "Music and Audio" or "Video players") for you to view and select any reduced rates you're eligible for.

U.S. Communications and Amusement Taxes

If you want to collect applicable state communications and amusement taxes in the United States using Play Console, you must specify that your app or product is a streaming product and select the appropriate streaming category. You can find additional information about the states where you can collect communications and amusement taxes in Check or change sales tax rates.

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