Starting next year, Google will automatically deduct as much as 25% tax from apps sold in Europe
Changes coming soon to Google Play’s Terms of Service could leave some app developers with a little less money in their pockets. Well, the ones who weren’t already paying Value-Added Tax for apps sold in the European Union.
Starting January 1st, Google will make things “easier” on developers by automatically deducting VAT (which can be as much as 25%) for any and all applications sold to the EU. Previously left up to app developers to pay on their own, this is, in addition to the 30% “transaction fee” Google already takes for purchases in the Google Play Store. The changes will be reflected in the Google Play Developer Console, with Google recommending developers head there to adjust pricing accordingly.
This post was more of a PSA than anything, so developers aren’t blindsided when they see smaller revenues from apps sold to their European customers. It’s just part of doing business internationally, we suppose.