Google Play Sales Tax & VAT Guide for U.S. Developers 2025

2025-09-17

If you're a U.S. developer selling apps or subscriptions through Google Play, this guide will tell you exactly:

Which U.S. sales taxes Google handles for you
Where Google collects international VAT/GST
What tax obligations remain your responsibility
How to stay compliant with official requirements

Quick Answer for U.S. Developers

U.S. Sales Tax:

Google collects and remits sales tax in 45 states plus DC plus Alaska localities
Your responsibility: Submit W-9, monitor economic nexus thresholds, potentially file $0 returns

International VAT/GST:

Google collects and remits VAT/GST in 80+ countries and regions as merchant of record
Your responsibility: Submit tax forms in Google Play Console and monitor withholding tax reports
Key exception: Local developers in certain countries must handle VAT themselves (typically doesn't affect U.S. developers)

Last updated: September 2025 based on official Google documentation

Talk to a sales tax expert

Get guidance tailored to your business

U.S. Sales Tax: What Google Handles

Google as Marketplace Facilitator

Google's Role: Google collects and remits sales tax as a marketplace facilitator in 45 states plus DC plus Alaska localities.

Official Coverage: Google is registered to collect sales tax in: Alabama, Alaska Localities, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

States NOT Covered by Google (No State Sales Tax):

Delaware, Montana, New Hampshire, Oregon: These states have no statewide sales tax, so there's no tax for Google to collect
Alaska: No statewide sales tax, but Google does collect in Alaska localities that impose local sales taxes

What This Means:

Google is responsible for determining, charging, and remitting sales tax for Google Play Store app and in-app purchases by customers in covered locations using Google Play's billing system
You don't need to calculate and send sales tax separately for customers in these locations. Even if you're not located in the United States, this treatment will still apply
The 4 states not covered have no sales tax to collect anyway

Official Source: Google Play - Tax rates and VAT

Your U.S. Sales Tax Responsibilities

1. Submit Required Tax Forms

W-9 Form: Must be completed in Google Play Console
Reference: Google Play - Payments FAQs

2. Alternative Billing Responsibility

For purchases made by customers in these locations using an alternative billing system, you are responsible for determining, charging, and remitting any sales tax due on the transaction to the relevant authorities.

3. Economic Nexus Compliance

Even though Google collects the tax, your Google Play sales count toward state economic nexus thresholds.

Monitor Thresholds: Sales through Google may still require registration and $0 returns in some states
Reference: Streamlined Sales Tax - Marketplace facilitators

International VAT/GST: Where Google Collects

THE COMPLETE OFFICIAL LIST

Based on Google's official tax documentation, Google collects VAT/GST in these countries:

Tax-Inclusive Pricing Countries (80+ Countries)

Google currently supports tax-inclusive pricing in: Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bermuda, Bosnia and Herzegovina, Brazil, British Virgin Islands, Bulgaria, Cameroon, Chile, Colombia, Côte d'Ivoire, Croatia, Cyprus, Czechia, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Kenya, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Moldova, Montenegro, Morocco, Nepal, Netherlands, New Zealand, Nigeria, Norway, Oman, Peru, Philippines, Poland, Portugal, Puerto Rico, Republic of North Macedonia, Romania, Russia, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Tajikistan, Tanzania, Thailand, Türkiye, Uganda, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Uzbekistan, and Zimbabwe.

Additional VAT/GST Collection Countries

Google is responsible for determining, charging, and remitting VAT or GST in the following additional locations: VAT: Albania, Georgia, Kazakhstan, Morocco, Senegal and Türkiye; GST: New Zealand

Official Source: Google Play - Tax rates and VAT

Your International VAT Responsibilities

1. Tax Information Submission

W-9 completion for U.S. entities
W-8BEN for non-U.S. entities (not applicable to U.S. developers)
Reference: Google Play - Payments FAQs

2. Monitor Withholding Tax

Due to requirements in some local markets, withholding taxes (WHT) may apply to developers offering Google Play Store app and in-app purchases made in those countries

Countries with WHT: Brazil, Egypt, India, Kuwait, Myanmar, Sri Lanka, Taiwan, and Tanzania
Your Action: Download WHT statements from Google Play Console for tax filing purposes
Reference: Google Play - Withholding tax

When You Must Handle Taxes Yourself

1. Alternative Billing Systems

When Google Doesn't Collect: If you use user-choice billing or alternative billing systems (where available)
Your Responsibility: Calculate, collect, and remit both sales tax and VAT
Reference: Google Play - Alternative billing

2. Countries Where Local Developers Handle VAT

Based on the official documentation, Google does not collect VAT for local developers in these countries:

Local Developers Must Handle VAT Themselves:

Australia: If you're located in Australia, you're responsible for determining, charging, and remitting GST on all Google Play Store paid app and in-app purchases made by customers in Australia
Belarus: If you're located in Belarus, you're responsible for determining, charging, and remitting VAT for all Google Play Store paid app and in-app purchases by customers in Belarus
Canada: You are responsible for determining, charging, and remitting GST/HST for all Google Play paid apps and in-app purchases made by customers in Canada if you are located in Canada and provide Google with your Canada GST/HST ID
Chile: If you're located in Chile, you're responsible for determining, charging, and remitting VAT for all Google Play Store paid app and in-app purchases by customers in Chile
Colombia: If you're located in Colombia, you're responsible for determining, charging, and remitting VAT for all Google Play Store paid app and in-app purchases by customers in Colombia
India: If you're located in India, it is your responsibility to determine whether you need to obtain a Goods and Services Tax Identification Number (GSTIN)
Japan: If you're located in Japan, you're responsible for determining, charging, and remitting Japan Consumption Tax (JCT) for all Google Play Store paid app and in-app purchases by customers in Japan
Malaysia: Local developers handle service tax
Mexico: If you're located in Mexico, you're responsible for determining, charging, and remitting VAT for all Google Play Store digital content purchases by customers in Mexico
Philippines: If you're located in the Philippines, you're responsible for determining, charging, and remitting VAT for all Google Play Store paid app and in-app purchases made by customers in the Philippines
Singapore: If you're located in Singapore, you're responsible for determining, charging, and remitting 9% Singapore Goods and Services Tax (GST)
South Korea: If you're located in South Korea, you're responsible for determining, charging, and remitting Value Added Tax (VAT) for all Google Play Store digital content purchases by customers in South Korea
Switzerland: You are responsible for determining, charging, and remitting VAT on all Google Play Store paid app and in-app purchases made by customers in Switzerland
Tanzania: You are responsible for determining, charging, and remitting VAT on all Google Play Store paid app and in-app purchases made by customers in Tanzania
Thailand: If you're located in Thailand, you're responsible for determining, charging, and remitting Thailand Value Added Tax (VAT)
Vietnam: If you're located in Vietnam, you're responsible for determining, charging, and remitting VAT for all Google Play Store paid app and in-app purchases made by customers in Vietnam
Zimbabwe: You are responsible for determining, charging, and remitting VAT on all Google Play Store paid app and in-app purchases made by customers in Zimbabwe

Impact on U.S. Developers: These exceptions only apply if you establish a local business entity in these countries. As a U.S.-based developer, Google handles VAT collection for your global Play Store sales.

3. Service Fee VAT

In certain countries, local developers may owe VAT on Google's service fee itself, separate from customer transactions.

Specific Country Requirements for U.S. Developers

Countries Where Google Always Collects (Non-Resident Treatment):

European Union: For customers in the UK and EU Member States, Google is responsible for charging, collecting, and remitting the VAT on sales
United Kingdom: Google is responsible for determining, charging, and remitting VAT for all paid apps and in-app purchases of digital content and services by UK customers using Google Play's billing system
South Korea (Non-Resident): Google is responsible for determining, charging, and remitting a 10% 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
Russia: Google is responsible for determining, charging, and remitting a 20% VAT to the appropriate authority for all Google Play Store paid app and in-app purchases made by customers in Russia
Saudi Arabia: Google is responsible for determining, charging, and remitting a 15% VAT to the appropriate authority for all Google Play Store paid app and in-app purchases by customers in Saudi Arabia

Countries with Special Withholding Tax Rules:

U.S. developers should monitor WHT reports for:

Brazil, Egypt, India, Kuwait, Myanmar, Sri Lanka, Taiwan, Tanzania

Compliance Checklist for U.S. Developers

Initial Setup

Complete W-9 in Google Play Console
Review Google's official tax coverage list for your target markets
Research economic nexus thresholds for U.S. states not covered by Google
Verify any countries NOT in Google's coverage where you have significant sales

Ongoing Compliance

Download monthly financial reports from Google Play Console
Monitor withholding tax statements for applicable countries
Track U.S. sales by state for nexus monitoring
Review state marketplace facilitator requirements annually
Check Google's tax documentation updates

Record Keeping

Maintain Google's payout and tax reports
Keep WHT statements for tax filing
Document any direct tax payments (if using alternative billing)

Frequently Asked Questions

Do I need to collect U.S. sales tax on Google Play sales?

No. Google collects and remits sales tax in 47 states + DC as a marketplace facilitator. However, you may need to register in some states for reporting purposes if you exceed economic nexus thresholds.

Do I need to file VAT returns for international sales?

No, for Google Play sales. Google collects and remits VAT/GST in 80+ countries as merchant of record. You only handle VAT if using alternative billing or establishing local business presence.

What about withholding tax?

Monitor reports. Google provides WHT statements for Brazil, Egypt, India, Kuwait, Myanmar, Sri Lanka, Taiwan, and Tanzania. Download these from Play Console for your tax filings.

How do I find current tax rates and coverage?

Check official sources:

Google Play Console tax reports for actual rates charged
Google's official tax documentation for complete coverage

What if I use alternative billing?

You handle everything. Google doesn't collect any tax when you use alternative billing systems. You're responsible for calculating, collecting, and remitting both U.S. sales tax and international VAT where required.

What about economic nexus in U.S. states?

Monitor carefully. Your Google Play sales count toward state thresholds. Some states require registration and $0 returns even when Google collects. Requirements vary by state.