[Q] Google Play app VAT/Sales Tax

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By killzusall, Junior Member on 3rd July 2014, 12:41 AM
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**Really sorry if I shouldn't have asked a question here, but wherever I try to post it, it pops up with a message saying it's not a Q&A forum, but I can't see where I should put it, plus the answer would be really useful to others I should imagine**


Just over a week ago I released my first Android app, I made an ad supported free version, and a paid version with no ads in it.

Since having a look around the settings in my Google Merchant account, I discovered a section about setting tax rates for my apps.

I have been through the hassle of getting the rates for each country I want my apps sold in.

I am wondering whether that was the correct thing to do, I have seen things on various forums saying I don't need to collect VAT unless I earn over 81,000 (I'm in the UK btw, and I'd be quite happy to make 100), others have said only put in the tax rate for the country which I'm selling from, others have said input for every country selling to.

I'm confused as to which I should have done.

Also, I saw that it said that Google will take the VAT off the gross price, then take their 30% off the net price, they will then pass on the gross price minus their cut, e.g.:

if app is 1
UK VAT is 20% so 1 minus 20% is 0.80
Google will take 30% of the 0.80, so this would be 0.24
They will then pass on the gross price minus their cut, so pass on 0.76

The way I read that I have 0.20 which is VAT sitting in my bank account, am I supposed to pay this in somehow, even if I'm not VAT registered, do I have to do that for every country around the world that I sell my apps to? And can I pay it all to the UK government or do I have to pay each relevant government their cut?

It's only a 69p app, I'm an unknown, I don't expect it to make huge amounts of money, I just wanted to learn and see how far I could get, might even look good on my CV, but the "paperwork" side of getting this thing up and running has been a headache.

For a multi billion dollar company, I think Google have done a really bad job of trying to encourage people that aren't part of large companies to develop apps, Apple deal with it all for you!
Last edited by killzusall; 3rd July 2014 at 01:03 AM. Reason: .
3rd July 2014, 01:51 PM |#2  
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Money Saving Expert (great UK forum for anything to do with money have answered the question for me, as being a No don't put tax rates on as charging VAT when not VAT registered (due to being below the threshold) is fraud
Last edited by killzusall; 3rd July 2014 at 01:54 PM.
3rd July 2014, 04:34 PM |#3  
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Business opportunity
My name is Odette and I represent Marimedia, an international mobile advertising network traded in the AIM London stock exchange.
I would like to evaluate collaboration with you by promoting your app using sophisticated technology that has been developed by our sister company, Taptica, in order to maximize advertiser's ROI .

please contact- Skype: odette.marimedia , email:
15th July 2014, 03:18 PM |#4  
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I'm from Italy and I'm blocked on this question too.

Is there somebody who knows The Answer?
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android, google play, tax

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