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Tax rates & value-added tax (VAT)

In some countries, prices shown to buyers on search and detail pages must equal the amount paid at time of payment. This means that all taxes (including VAT) must be included in the price.

We currently support tax-inclusive pricing in the following countries:

  • Australia, Austria, Belgium, Brazil, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Israel, Japan, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, United Kingdom

Region & country-specific VAT guidelines

European Union

Due to VAT laws in the European Union (EU), Google is responsible for determining, charging, and remitting VAT for all Google Play Store digital content purchases by EU customers. Google will send VAT for EU customers' digital content purchases to the appropriate authority.

You don't need to calculate and send VAT separately for EU customers. Even if you're not located in the EU, this change in VAT laws will still apply.

See an example
Before EU VAT change on January 1, 2015 After EU VAT change on January 1, 2015

Assuming app price in country is £1 and VAT is 20%

Developer revenue after 70/30 split & remitting VAT: £0.58

  • Example: £0.83 * 0.7 = 0.58
  • Pre-VAT price * 70%

Buyer is assessed EU VAT: £0.17

  • Example: £1 - (£1 * 1/1.2) = £0.17
  • App price - (App price * 1/(1+tax rate))

Developer receives from Google: £0.75

Developer remits EU VAT: £0.17

Assuming app price in country is £1 and VAT is 20%

Developer revenue after 70/30 split & remitting VAT: £0.58

  • Example: £0.83 * 0.7 = 0.58
  • Pre-VAT price * 70%

Buyer is assessed EU VAT: £.17

  • Example: £1 - (£1 * 1/1.2) = £0.17
  • App price - (App price * 1/(1+tax rate))

Developer receives from Google: £0.58

Google remits EU VAT: £0.17

For developers who didn't set VAT rates for apps and content for applicable EU countries, here's how the change can affect you:

Before EU VAT change on January 1, 2015 After EU VAT change on January 1, 2015

Assuming app price in country is £1 and developer didn't set VAT rate.

Developer revenue after 70/30 split

  • Example: £1 * 0.7 = 0.70
  • App price in country * 70%

Developer receives from Google: £0.70

Assuming app price in country is £1 and VAT is 20%

 

Developer revenue after 70/30 split & remitting VAT: £0.58

  • Example: £0.83 * 0.7 = 0.58
  • Pre-VAT price * 70%

Buyer is assessed EU VAT: £0.17

  • Example: £1 - (£1 * 1/1.2) = £0.17
  • App price - (App price * 1/(1+tax rate))

Developer receives from Google: £0.58

Google remits EU VAT: £0.17

VAT rates used for EU customer app and content purchases

Here's how to check the VAT rates used for EU customer app and content purchases.

  1. Sign in to your Play Console.
  2. On the left menu, click Settings Settings > Payment Settings > Manage sales tax.
  3. Under "European Union," click Show.
South Korea

Developers located in South Korea

If you're located in South Korea, you're responsible for determining, charging, and remitting VAT for all Google Play Store digital content purchases by customers in South Korea.

Developers located outside of South Korea

Due to tax laws in South Korea, Google is responsible for determining, charging, and remitting a 10 percent VAT to the appropriate authority for all Google Play Store paid apps and in-app purchases by customers in South Korea for developers located outside of South Korea.

As a result, if you're located outside of South Korea, you don't need to calculate and send VAT separately for purchases by customers in South Korea. If you were previously collecting VAT in South Korea, you no longer need to do so.

Japan

If you offer paid apps or in-app purchases to customers in Japan, beginning October 1, 2015, a change in Japan Consumption Tax Law (JCT) affects your tax responsibilities in Japan. If you have specific questions related to your tax responsibilities in Japan, consult your tax advisor.

Developers located outside of Japan

If you're located outside of Japan and offer paid apps or in-app purchases to customers in Japan, you're responsible for charging, remitting, and reporting on any JCT to the National Tax Agency in Japan.

Developers located in Japan

If you're located in Japan and offer paid apps or in-app purchases to customers in Japan, beginning October 1, 2015, the 30% Google Play transaction fee charged by Google Asia Pacific Limited is now considered a business-to-business (B2B) transaction.

You're responsible for assessing and reporting JCT for the B2B services provided by a foreign entity to the National Tax Agency in Japan. JCT will not be automatically added to your app's transaction fees.

Russia

Developers located in Russia

If you're located in Russia, you're responsible for determining, charging, and remitting VAT on all Google Play Store paid app and in-app purchases made by customers in Russia.

Developers located outside of Russia

Due to tax laws in Russia, Google is responsible for determining, charging, and remitting an 18% VAT to the appropriate authority for all Google Play Store paid app and in-app purchases made by customers in Russia.

You don't need to calculate and send VAT separately for purchases made by customers in Russia. If you were previously collecting VAT in Russia, you no longer need to do so.

Other countries & regions

Due to VAT and Goods and Services Tax (GST) laws, Google is responsible for determining, charging, and remitting VAT or GST for all Google Play Store paid app and in-app purchases made by customers in the following locations:

  • VAT: Albania, Morocco, Norway, Taiwan
  • GST: New Zealand

Google will send VAT or GST for paid app and in-app purchases made by customers in these countries to the appropriate authority. You don't need to calculate and send VAT or GST separately for customers in these countries.

Here's how to review the VAT or GST rates used for paid app and in-app purchases in these countries:

  1. Sign in to your Play Console.
  2. On the left menu, click Settings Settings > Payment Settings > Manage sales tax.

Change app prices

To learn how to set up and change app prices, go to set up prices & app distribution.

If you offer apps in tax-inclusive countries, the tax rate set in your Play Console will be applied to your existing tax-exclusive prices.

In countries where developers are responsible for remitting VAT to the appropriate tax authority, Google will pass on the entire tax amount collected to the developer, and calculate the 30% transaction fee off the net price of the product.

See an example
Assuming app price in country is 100JPY and VAT is 20%:

Developer receives from Google: 75JPY

Developer remits VAT: 17JPY

  • Example: 100JPY - (100JPY * 1/1.2) = 17JPY
  • App price - (App price * 1/(1+tax rate))

Developer revenue after 70/30 split & remitting VAT: 58JPY

  • Example: 83JPY * 0.7 = 58JPY
  • Pre-VAT price * 70%
Importing CSV files for in-app products

If you're importing CSV files with in-app products, please keep tax-inclusive pricing in mind.

  • If you use auto-converted pricing, you can provide a tax-exclusive default price. Tax-inclusive prices will be auto-converted.
  • If you don't use auto-converted pricing, prices must include tax.

Local prices for in-app products

To prevent the local price for your country's default currency from being auto-filled for in-app products, you need to specify the in-app products' price twice in the CSV files you import:

  • The first price sets an in-app product's default price.
  • The second price sets an in-app product's local price.

Note: To import CSV files with in-app products, go to administer in-app billing.

Other countries

If you're offering apps in a country other than those listed above, you're responsible for determining the applicable tax rate for your apps in all jurisdictions and for remitting the taxes to the appropriate taxing authority (which may be different to the tax authority in your own location). The tax rates you specify automatically apply when the buyer checks out. Google is unable to provide you with tax advice and you should consult your own tax advisor.

Check your tax rates

  1. Sign in to your Play Console.
  2. On the left menu, click Settings Settings > Payment Settings > Manage sales tax.
  3. Find the region where you'd like to change tax settings.
  4. Next to "Tax rates," select the pencil icon Pencil icon.
  5. Enter the tax rate.
  6. Click Save.
See an example

The sales tax rate will be a percentage of the price of your app. For example:

Sales tax rate App price Sales tax Total app price
20% $10 $2.00 $12.00

For developers in India & Argentina

At this time, if you're a developer in one of these countries offering apps on Google Play, please be aware that there is not a mechanism provided for collecting sales taxes, value added taxes, or other taxes. It is your responsibility as the merchant of record to:

  1. Determine if you are legally required to collect taxes,
  2. Gross-up the application price to include any taxes, and
  3. Remit any required taxes to the relevant taxing authority. You're responsible for any withholding taxes arising from the sale of the apps, and any payments from Google will be made net of withholding taxes.
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