Google Play Sales Tax: Do You Need To Collect It? (U.S. Developer Guide 2025)

2025-09-17

If you sell apps or subscriptions through Google Play, Google Play sales tax rules are confusing.

Google collects some taxes for you. In other cases, you are still on the hook. This guide explains how it works for U.S. developers in plain language.

Quick answer: Do I need to collect sales tax on Google Play sales?

Short version:

For most app and in app purchases that use Google Play billing, Google is treated as marketplace facilitator or merchant of record. Google calculates, charges, and remits sales tax or VAT where it is responsible.
Your main work is to give Google correct tax info, track state economic nexus, and watch for withholding tax in certain countries.
You only calculate and charge tax yourself when you use alternative billing, run a local entity in certain countries, or sell in places where Google is not responsible for indirect tax.

U.S. sales tax:

Google collects and remits sales tax in most states plus some Alaska local jurisdictions.
You may still need to register in some states and file zero dollar returns once you cross economic nexus thresholds.

International VAT and GST:

Google collects and remits VAT or GST in many countries, often using tax inclusive pricing.
You still need to monitor withholding tax on your payouts and keep your records in order.

Last updated: September 2025 based on official Google Play tax documentation.

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U.S. sales tax: what Google handles

Google as marketplace facilitator

For Google Play billing transactions, Google usually acts as a marketplace facilitator or similar role. That means Google:

Decides when a sale is taxable
Calculates the correct tax rate based on the buyer’s location
Charges the tax to the customer at checkout
Sends the tax to the right state or local agency

For those purchases:

You do not add a separate U.S. sales tax line.
You do not remit that specific tax to the state. Google already did it.

States with no state sales tax:

Delaware, Montana, New Hampshire, and Oregon do not have statewide sales tax. There is no state sales tax for Google to collect.
Alaska has no state sales tax, but some local governments have their own sales tax. Google collects in many of those local jurisdictions.

The current list of where Google collects is in the official help article Tax rates and VAT.

Your U.S. sales tax responsibilities

1. Submit required tax forms in Play Console

If you are a U.S. developer:

Complete the W 9 in Google Play Console.
Make sure your legal name and tax ID match IRS records.

If details do not match, you can see payout holds or backup withholding, so it is worth checking this carefully.

See Google Play Payments FAQs for screenshots and steps.

2. Watch alternative billing

If a purchase uses an allowed alternative billing system instead of Google Play billing, Google does not handle tax on that sale.

In that case, you are responsible for:

Deciding if the sale is taxable
Charging the correct tax rate
Registering and filing returns with the tax authorities

This applies to both U.S. sales tax and foreign VAT or GST for those specific transactions.

See Alternative billing for Google Play for rules and scope.

3. Track economic nexus

Even when Google collects the tax, your Google Play revenue still counts toward state economic nexus thresholds.

In practice this means:

Some states expect marketplace sellers to register once they pass a sales or transaction threshold, even if a platform collects tax.
Many of those states then require ongoing filings. Often the return will show gross sales, marketplace sales, and zero tax due.
Other states are looser and do not require registration if you only sell through marketplace facilitators like Google.

To manage this:

Use Google Play reports to track sales by state.
For states where you are near or above thresholds, check state guidance or speak with a tax advisor.

The Streamlined Sales Tax marketplace facilitator guidance and state DOR sites describe these rules in more detail.

International VAT and GST: where Google collects

How tax inclusive pricing works

In many countries, Google uses tax inclusive pricing for Google Play. You set a list price in Play Console. Google treats that as the price including any VAT or GST that applies.

Behind the scenes, Google:

Works out how much of the price is tax
Withholds that tax and sends it to the local tax authority
Pays you the rest, after its service fee and any withholding tax

From your point of view:

The buyer sees a single price.
Google handles the VAT or GST part for in scope sales.

Regions where Google usually collects VAT or GST

Google keeps the detailed list in Tax rates and VAT. As of 2025, Google is responsible for VAT or GST in many countries and territories across:

Europe, such as EU member states, the United Kingdom, Norway, and Switzerland
Asia Pacific, such as Australia, India, Japan, New Zealand, South Korea, and others
The Americas, such as Brazil, Mexico, Chile, Colombia, and some Caribbean locations
The Middle East and Africa, such as Saudi Arabia, United Arab Emirates, South Africa, and others

For a U.S. developer, the key idea is simple. If that article says Google calculates and remits VAT or GST for Google Play billing transactions in a country, you normally do not file a VAT return in that country just for those Google Play sales.

Your international VAT and GST responsibilities

1. Keep tax info current in Play Console

You already give Google your W 9 as a U.S. developer. If you later open a non U.S. entity, you will also need to give that entity’s tax details.

Keep these up to date:

Legal name
Legal address
Tax identification numbers

This matters for payment reporting, withholding rules, and in some cases how Google treats VAT on its service fee.

2. Monitor withholding tax on payouts

Some countries require platforms to withhold a slice of your revenue as income tax at source. Google calls this withholding tax or WHT.

You may see WHT for sales to customers in countries listed in Withholding tax on Google Play.

What you should do:

Turn on and download WHT statements from Play Console.
Share those statements with whoever files your business tax returns.
They can often claim a credit for that foreign tax, so the money is not lost.

When you must handle taxes yourself

1. You use alternative billing

If you use user choice billing or any other allowed alternative payment solution, Google steps out of the tax role for those transactions.

That means:

You calculate and charge any U.S. sales tax.
You calculate and charge any foreign VAT or GST.
You register in each jurisdiction that needs a registration.
You file and pay the tax yourself.

This is similar to running your own direct checkout on the web.

See Alternative billing for Google Play for details.

2. You have local entities in certain countries

Google’s tax guidance notes countries where local developers are responsible for VAT or similar taxes. For example, local entities in places such as Canada, Australia, Japan, and others often have separate obligations on their own sales.

If you only have a U.S. company:

These local developer rules usually do not apply to you.
Google continues to act as merchant of record for Google Play billing in those markets.

If you open a subsidiary in another country:

That subsidiary may have its own VAT or GST registration and filing needs.
At that point, you should talk to a local tax advisor before routing Play revenue there.

For the merchant of record structure in each country, see Merchant of record and tax collection by country.

3. VAT on Google’s service fee

Some countries treat Google’s service fee to you as a taxable service. You may see VAT on invoices from Google to your company, separate from VAT on customer purchases.

In that case:

Store those invoices with your accounting records.
Your accountant will decide how to treat that VAT for income tax and, if you are registered, for input tax credit.

You do not charge this VAT to app customers. It is a cost or credit at the business level.

Compliance checklist for U.S. developers

Setup checklist

Fill out W 9 in Google Play Console and confirm details match IRS records.
Confirm you are using Google Play billing for all in app purchases, or list where you use alternatives.
Read Google’s current tax coverage list for the countries where you have real revenue in Tax rates and VAT.
Note which U.S. states you have the most Google Play sales in.

Ongoing checklist

Download monthly payout and tax reports from Play Console.
Download and store WHT statements for countries that withhold, using Withholding tax on Google Play as a guide.
Track your U.S. revenue by state to watch economic nexus thresholds.
Once a year, review marketplace facilitator rules in your top states or ask a tax advisor to do a quick check, starting from Streamlined Sales Tax marketplace facilitator guidance.
Skim Google Play tax help pages a few times a year for changes.

Record keeping checklist

Save payout reports, VAT and GST details, and WHT statements by month and year.
Store invoices from Google that show VAT on service fees.
Keep copies of any state or foreign tax registrations and returns related to Google Play sales.

Common questions from U.S. developers

Does Google Play collect U.S. sales tax for my apps?

For most in scope Google Play billing transactions in covered states and Alaska localities, yes. Google calculates the sales tax, charges it to the customer, and remits it. You do not add a separate tax line on top of that.

For current coverage, see Tax rates and VAT.

Do I need to collect U.S. sales tax on top of what Google collects?

Usually no, but you might still have to register and file returns. Your revenue counts toward state economic nexus thresholds. Some states want marketplace sellers to register and file even if all sales tax is collected by platforms like Google.

You can start research from Streamlined Sales Tax marketplace facilitator guidance and state DOR sites.

Does Google Play collect VAT or GST on international sales?

In many countries, yes. When Google is merchant of record, it handles VAT or GST for Google Play billing transactions. That is why the list price you set often includes tax by default in those regions.

See Tax rates and VAT for the country list.

When am I fully responsible for tax on Google Play sales?

You are fully responsible when:

You use an alternative billing system instead of Google Play billing.
You route sales through a local entity in a country where developers, not Google, must handle VAT or similar taxes.
You have other revenue streams outside Google Play, such as direct web sales, that are not covered by marketplace rules.

How do I see what tax Google applied?

Use Google Play Console:

Financial reports show sales, tax amounts, and payouts.
WHT reports show foreign income tax withheld from your payouts.

For tax info from the buyer side, there is also Tax information for Google Play purchases.

Give these reports to your accountant. They are often enough to handle filings and credits without a separate data pull.

Official documentation

Google sources:

Government and policy sources:

Streamlined Sales Tax marketplace facilitator guidance
State Department of Revenue sites for nexus and marketplace rules
Local tax authority guidance in any country where you have a legal entity or significant sales