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Google Play Store Sales Tax?

M

manutdc

Member
Bought a game off the Google Play Store today. I know they charge sales tax, but I got charged 20% for a purchase in Maryland, where the sales tax is 6%. See below:

playstoreorder.png


Am I missing something here, or did I get charged the wrong sales tax? Just want to be sure before I go to customer support. Thanks in advance for any insight!
 
That's strange. I've never been charged sales tax for app purchases on the Play Store. I'm in GA where we have 7% sales tax. I purchased Stars Wars Pinball game last week for $1.99 and there was no sales tax added.
 
ponyo said:
That's strange. I've never been charged sales tax for app purchases on the Play Store. I'm in GA where we have 7% sales tax. I purchased Stars Wars Pinball game last week for $1.99 and there was no sales tax added.
Click to expand...

most states you don't pay sales tax unless the seller has an actual physical presence in the state - whether that is offices or somethign like that.

that's why online retailers were having a blast on online orders and brick and mortars were pissed, and it's understandable why.

i remember when NY passed a law that makes sales tax applicable to online orders. states are also mad they don't get that cut now either.

in NJ i pay no sales tax on Amazon orders, but i do for google play orders. not sure what google has here in NJ. Amazon is building a warehouse in NJ so after that we will pay sales tax.

what is interesting is that if you look for jobs on Amazon, they have jobs listed in NJ - at some companies they seem to own like Audible, but yet no sales tax. one would think that could count as a physical presence but maybe they are not full owners or something. not sure of the details.
 
PixelSquish said:
most states you don't pay sales tax unless the seller has an actual physical presence in the state - whether that is offices or somethign like that.

that's why online retailers were having a blast on online orders and brick and mortars were pissed, and it's understandable why.

i remember when NY passed a law that makes sales tax applicable to online orders. states are also mad they don't get that cut now either.

in NJ i pay no sales tax on Amazon orders, but i do for google play orders. not sure what google has here in NJ. Amazon is building a warehouse in NJ so after that we will pay sales tax.

what is interesting is that if you look for jobs on Amazon, they have jobs listed in NJ - at some companies they seem to own like Audible, but yet no sales tax. one would think that could count as a physical presence but maybe they are not full owners or something. not sure of the details.
Click to expand...

I know how online sales tax work. I get charged sales tax from the Google Play Store if I buy physical item like Nexus 4, 7, etc. But no sales tax for app purchases. Same for Apple. If I purchase from the Apple online store, I get hit with sales tax for items like the iPad, Macbook Air, etc. But I've never been charged sales tax for app purchases from the App store.
 
I'm in Maryland and I've never been charged sales tax on any Android app.
That is very strange indeed.

***EDIT***
I just did a preview test and tried purchasing that particular app, and it's showing sales tax.
Either it's a serious bug or the app developer has a physical presence in the state of Maryland.
Can someone that lives in another state try to buy the app and see what comes up in the order preview?
https://play.google.com/store/apps/...wiY29tLm5ld3N0YXJnYW1lcy5uZXdzdGFyc29jY2VyIl0.
 
Last edited:
in NJ i don't remember paying taxes on apps from google play, but i do on movies and tv shows from them.

lothar said:
I'm in Maryland and I've never been charged sales tax on any Android app.
That is very strange indeed.

***EDIT***
I just did a preview test and tried purchasing that particular app, and it's showing sales tax.
Either it's a serious bug or the app developer has a physical presence in the state of Maryland.
Can someone that lives in another state try to buy the app and see what comes up in the order preview?
https://play.google.com/store/apps/...wiY29tLm5ld3N0YXJnYW1lcy5uZXdzdGFyc29jY2VyIl0.
Click to expand...


shows the same .60 tax for me in NJ. must be an app specific screw up
 
Thanks for the confirmation guys. Seems really odd, I would imagine that Google Play adds in the sales tax, not the app? Developer is from the UK, afaik.

I'll see if I can get the money back!
 
I just tested that app and it's charging me 20% tax too. And I'm in GA. It has to be a bug. 20% tax is crazy. There shouldn't be any tax on app purchases at the Google Play Store or Apple App store.
 
Speaking as a developer, tax on the Apple App Store is automatic. Tax on the Google Play Store is up to whatever the developer decides based on settings in Google Checkout.
 
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