We have noticed that Android subscribers in certain states are being charged sales tax on their subscription. For example, our monthly set price is $6.99, but the subscriber is being charged $7.48 ($.49 in tax).
Does anyone know if this is related to us setting up business/tax documents wrong, or if Android users need to pay sales tax based on their state laws? We are providing a basic subscription app service and not selling digital goods. I have tried editing the tax settings in Google Play, but some states are uneditable so Google’s preset is taking priority.
Thanks for any assistance here!