Question

Are Android subscribers required to pay sales tax in some states?

  • 3 May 2022
  • 1 reply
  • 21 views

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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!

 

 


1 reply

Userlevel 4
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Hey @Gravy Developer!

Google will automatically collect taxes for applicable transactions, and I’m not sure it’s something that is configurable. You can read more about their automatic tax collection here: https://support.google.com/googleplay/answer/2850368

Since we’re not the payment processor, we unfortunately don’t have a lot of insight into how they are collecting taxes and in what scenarios outside of their documentation. You can also reach out to Google Play Developer Support directly if that doesn’t help: https://support.google.com/googleplay/android-developer/answer/7218994

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