pricing of app changed in Google store with taxes increment

Yesterday I uploaded my new paid app. I priced it at 1.95 euro’s. But when the app appeared in the store, it was priced as 2.45. Finally I succeeded in having the price in the store on 2,00 euro’s, after I entered a price of 1.65 in my store backend. A couple of month’s ago, exactly the same price appeared in the store, but now Google seems to include an increment for taxing. But where does this money go? To the US taxes? Or to my country taxing? Do others have noticed this change as well?

Are you talking about VAT? We in EU have to pay it, so it goes to us and then we pay it to our country’s tax office.

So the tax goes to you. I suppose if you are in a country where there is no VAT you win. Otherwise you have to pay it.
In case of very, very big revenues things get more complicated (because there are limits of VAT in each of the countries after achieving which you have to create a division of your company in that country and pay taxes there - the limits are very, very high though).

I just had my first sell of this app I talked about, to a Canadian, who apparently paid the equivalent of 1,65 euros. I understand now what is happening. Only in the Netherlands the pricing differs, as Google seems to have made a deal with the Government to include 21% VAT in the selling price. In other countries my pricing of 1,65 euros is the same in backend and in the Google Store.

What happens if you are from UK and someone from another country buys your app? Where then do you pay tax? I’m asking this because you need to set tax in your merchant center for each and every country…

I put for 0.59 Euro and it was same amount. In the google developer console you can calculate automaticlly for other countries too.