Foreign Sales Tax

Discussion in 'In App Purchases' started by nicKz470, Oct 15, 2016.

  1. nicKz470

    nicKz470 Boxer

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    I'm not sure if this is the correct place to ask this question but I have tried to find sources from google but I cant seem to find any answer. I am absolutely new to game developing and i would want to understand all the process before I starting to develop my own game.

    If i am to develop a game with IAP and publish to Play Store, how would us as an Indie Developer handle foreign sales tax from the IAP?

    According to Google, if the Purchaser is from a country with taxation (although Developer is from a country without taxation), the Developer will still have to collect and remit the tax. Am I correct?
     
  2. spicedbeangames

    spicedbeangames Miniboss Boxer

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    Google takes care of all the taxes from sales. An example would be that VAT is added to all transactions outside the EU - Google adds this to the cost of the purchase automatically during the sale. So if you charge £1 for your IAP - the seller will see £1.20 with a VAT of 20%. When the sale is made, Google take the 20p and give it to the EU, you get your £1 minus Googles cut.
     
  3. nicKz470

    nicKz470 Boxer

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    But i found these from Google Developer Console Help:

    If you're offering apps in a country other than those listed above, you're responsible for determining the applicable tax rate for your apps in all jurisdictions and for remitting the taxes to the appropriate taxing authority (which may be different to the tax authority in your own location). The tax rates you specify automatically apply when the buyer checks out. Google is unable to provide you with tax advice and you should consult your own tax advisor.

    If you're located outside of Japan and offer paid apps or in-app purchases to customers in Japan, you're responsible for charging, remitting, and reporting on any JCT to the National Tax Agency in Japan.
     
  4. trudnai

    trudnai Miniboss Boxer

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    This case the seller is Google, you are like a subcontractor... Google takes care of the tax in the buyers side and you take care of the tax for your earnings... You do not want to deal with tax in 128 countries :)
     
  5. nicKz470

    nicKz470 Boxer

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    Yes it will be horrible if I will need to deal with taxes from that many countries!
    Just to make sure, basically developer dont have to worry about tax nor include tax rate for different country in Google Merchant Center, Google will automatically adjust our IAP price to include tax if tax is applicable. Is that correct?
     
  6. nicKz470

    nicKz470 Boxer

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    Could anyone confirm whether I have the right idea as above mentioned? Im worried as what I understand from Google guides is kinda different.
     

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