Question

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

G
Badge +6

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!

 

 

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2 replies

G
Badge +6

Thanks @cody. Quick update that we have not been able to find a good answer for this question.

From what we can tell, iOS subscribers pay 0% in tax. However, Android subscribers in certain states are paying tax each month on the subscription amount. Unfortunately we don’t have the option to disable the tax amount in the Google Play admin, so we were hoping to confirm if any other customers are also charging tax to Android users.

cody
Rank
Userlevel 6
Badge +8

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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