If you're a developer selling apps in a European Union member country, there will be some changes in the way taxes are handled on your apps and in-app purchases. In response to some changes to Value-Added Tax (VAT) laws in the EU, Google will be responsible for calculating and remitting VAT for EU Google Play customers.
In a statement on Google's developer support site, the company says:
Starting January 1, 2015, due to a change in Value-Added Tax (VAT) laws in the European Union (EU), Google will be responsible for determining, charging, and remitting VAT for all Google Play Store digital content purchases for EU customers. Google will send VAT for EU customers' app purchases to the appropriate authority.
If you're a developer that sells apps in one of the tax-inclusive countries, Google explains how this will affect you:
If you sell apps in one of these countries, the tax rate set in your Google Wallet Merchant Center will be applied to your existing tax exclusive prices.
In countries where developers are responsible for remitting VAT to the appropriate tax authority, Google will pass on the entire tax amount collected to the developer, and calculate the 30% transaction fee off the net price of the product.
In addition, while Google already supports tax-inclusive pricing in a number of countries, it is expanding the structure to 8 new countries at the beginning of next year: