Google Play Sales Tax & VAT Guide for Developers 2025

2025-09-16

If you sell apps or subscriptions through Google Play, you may wonder:
Who is responsible for sales tax and VAT: Google, or you as the developer?

The Short Answer (for U.S. sellers)

U.S. sales tax: In the U.S., developers are often the merchant of record under the Developer Distribution Agreement. But because of state marketplace facilitator laws, Google usually collects and remits sales tax on your behalf. In some cases, Google is itself the seller of record. (Google Play – On sales by Google vs. sellers)
International VAT/GST: Google also collects and pays VAT/GST in most countries. Some exceptions apply for local developers.
Your part: Submit your tax forms in Google Play Console (like a W-9 if you’re U.S.-based).
Nexus rules: Even if Google collects the tax, your Google Play sales may count toward state economic nexus thresholds. Some states may require you to register and file $0 returns.
Exceptions: In some countries, especially if you are a local developer, Google does not handle tax for you. In those cases, you must register and file yourself.

Last updated: September 2025

Quick Reference (2025)

Topic	What you need to know
U.S. sales tax	Developers are usually merchant of record in the U.S., but Google collects/remits sales tax as a marketplace facilitator in most states. In some cases, Google is the seller of record itself. (Google Play – Tax Information)
VAT / GST abroad	Google collects and remits VAT/GST in most countries using Google Play billing. In many regions, prices must be tax-inclusive (customers see VAT included in the price). Local developers may still be responsible in some countries. (Google Play – Tax rates and VAT)
Economic nexus	Your sales through Google may count toward state thresholds. Some states may require you to register and file $0 returns. (Marketplace facilitators)
Tax forms	You must submit tax forms in Google Play Console (W-9 for U.S., W-8BEN for non-U.S.). (Google Play – Payments FAQs)
Reports	You can download payout and tax reports in Google Play Console for your records. (Google Play – Reports)

Google as Merchant of Record

Globally, Google is the merchant of record for Play Store transactions in most countries.

But in the U.S., the situation is mixed:

Per the Developer Distribution Agreement (DDA §3.4–3.5), developers are usually the merchant of record.
Still, under state marketplace facilitator laws, Google collects and remits sales tax on your behalf in nearly every state.
In some cases (see Google Play Help), Google is itself the seller of record in the U.S. and directly responsible for tax.

What this means in practice:

Customers see final prices that include tax where required.
Google handles the tax collection/remittance, whether as marketplace or seller of record.
You receive your proceeds after Google’s service fee.

U.S. Sales Tax

In the U.S., developers are usually merchant of record under the DDA.
However, Google collects and remits sales tax as a marketplace facilitator in most states.
In some cases, Google itself is the seller of record and directly collects/remits tax.

Google is currently registered to collect tax in these states (when purchases use Google Play billing):

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.

In accordance with sales tax requirements, Google is responsible for determining, charging, and remitting sales tax for Google Play Store app and in-app purchases by customers in these states using Google Play’s billing system. Google will collect and remit sales tax to the appropriate tax authority, as applicable.

You don't need to calculate and send sales tax separately for customers in these states. Even if you're not located in the United States, this treatment will still apply.

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.

You still need to:

Submit your W-9 form in Google Play Console.
Keep Google’s payout and tax reports for your records.

Sources:

Economic Nexus Rules

Even though Google collects the sales tax, your Google Play sales can count toward state economic nexus thresholds (like $100,000 sales or 200 transactions).

In some states, if you cross the threshold, you must register and file returns.
Your return may show Google sales as gross sales, then deduct them as marketplace sales (often ending in a $0 tax due).
Other states do not require registration if all your sales are through marketplaces.

Streamlined Sales Tax Governing Board

VAT / GST Outside the U.S.

In most countries, Google collects and remits VAT or GST on app sales.

For a U.S. developer:

You do not need to register for or file VAT/GST returns on Google Play sales.
Google provides payout and tax reports in Google Play Console for your records.

Google Play – VAT overview

Tax Forms in Google Play Console

When you set up your account, you must submit tax forms in Google Play Console:

U.S. developers: W-9 form.
Non-U.S. developers: W-8BEN or other applicable form.

Google uses these forms to determine what tax information to report and how to handle your payments.

Google Play – Payments FAQs

Reports You Can Download

From Google Play Console you can download:

Financial reports (earnings, service fees, taxes).
Payout reports (how much you were paid each cycle).
Tax forms (like 1099-MISC for U.S. developers).

Google Play – Financial reports

When You Handle Tax Yourself

Alternative billing methods: In some countries, Google allows user-choice billing or alternative billing. If you use these, you may be responsible for calculating, collecting, and remitting tax on those transactions.

Google Play – Alternative billing

Withholding tax

Withholding tax (WHT) in certain countries: Some countries require Google (or its payment processors) to deduct withholding tax from developer payouts. This tax is taken before funds reach you.

Countries with WHT rules include: Brazil, Egypt, India, Kuwait, Myanmar, Sri Lanka, Taiwan, and Tanzania.
Google provides an annual WHT statement in Play Console, showing how much tax was withheld.
In India, Google also provides Form 16A quarterly (15 days after each quarterly filing date).
These WHT statements are informational and not official government documents. Always consult your tax advisor on how to use them.

Google Play – Withholding tax (WHT) rules and reports

Exceptions

Google’s Developer Distribution Agreement and Tax responsibilities by country explain that in some countries, Google does not handle all taxes. In those places, local developers must register, collect, and remit taxes themselves.

Key Agreement Language

From Section 3.4 and 3.5 of the Developer Distribution Agreement:

Google is the merchant of record for sales in most countries.
In some countries/territories, you remain the merchant of record. That means you must:
- Determine if the sale is taxable.
- Charge and collect the correct tax.
- Remit it to the tax authority.
- Provide required invoices or documentation.
If Google collects tax on your behalf, you may recognize a “deemed supply” to Google for tax purposes (depending on local law).

Countries where Google does not collect tax for local developers

(Developers must register and handle VAT/GST themselves)

Australia
New Zealand
India
Indonesia
Malaysia
Singapore
Thailand
Vietnam
Other country-specific cases listed in Google’s official documentation (see full list)

Other special cases

EU, UK, and India: Prices must be shown tax-inclusive; Google builds VAT/GST into the customer-facing price.
South Korea & India: If you use alternative billing instead of Google Play billing, you are responsible for taxes.
Service Fees: Google’s service fees are calculated on the sales price excluding tax. Developers may owe VAT/GST on the service fee itself, depending on local law.

What this means as a U.S. developer:
You generally don’t need to worry about these exceptions unless you set up as a local entity in one of these countries or opt into alternative billing. If you do, you may need to register and file VAT/GST there yourself.

FAQ

Does Google collect sales tax for Google Play sales in the U.S.?

Yes, but with nuance. In the U.S., developers are usually merchant of record under the DDA. However, due to state marketplace facilitator laws, Google collects and remits sales tax on Play Store transactions. In some cases, Google is itself the seller of record.

Do I need to file VAT if I’m a U.S. developer selling through Google Play?

Usually no. Google collects and remits VAT/GST in most countries. As a U.S. developer, you most likely do not need to register or file VAT returns for Google Play sales. Check via Tax rates and VAT details.

What about economic nexus rules in U.S. states?

Even if Google collects the tax, your Google Play sales may count toward state economic nexus thresholds (for example, $100,000 sales or 200 transactions). Some states may require you to register and file $0 returns.