Developers, adjust the price of your apps, they will charge you VAT

Google has changed its policy regarding Google Play and developer applications. Basically, it has become necessary to comply with the new revision of the VAT law in the European Union. Now you will have to pay VAT for each app that is purchased. And this can affect developers a lot if they do not adjust the price of the apps.

The revised VAT law stipulates that users will have to pay VAT for apps purchased with their smartphones or tablets on Google Play if they reside in any of the European Union countries. Although this tax is 25% in some regions of Europe, and is lower in others, in Spain it is 21%, which means that we will have to pay 21% VAT for each application purchased.

This will not change almost anything in the case of users, and we say almost because we will have to fill in some more information, such as the address in which we live, and the telephone number, so that the purchase can be made, as we already explained to you, something you may have already done if you've been trying to buy an app lately.

The problem is that developers should be very attentive to this. Precisely so that users do not have to pay a higher price than the one set by the developer, this VAT will be charged from the base price that the user has set for the application. If before the application was sold for 99 cents, now 21% will be deducted from those 99 cents and Google will declare it. Developers have to readjust the price of their applications. If they do not mind losing some money, in the form of VAT, then they will have to leave the same price, but if they want to earn the same, they will have to recalculate the price taking into account that VAT will be included in that price.

Google has in its platform for application developers the possibility of including different prices for apps in different countries, so it will be necessary to modify the price of the countries of the European Union, taking into account the VAT of each of these .