Google Play is not the seller of record, they only act as a payment processor (similar to Stripe or Paypal). You are responsible for paying and collecting tax.

Google Play is not the seller of record, they only act as a payment processor (similar to Stripe or Paypal). You are responsible for paying and collecting tax. Check section 3.2 of the Google Play agreement: "Developer is responsible for determining if a Product is taxable and the applicable tax rate for the Payment Processor to collect for each taxing jurisdiction where Products are sold. Developer is responsible for remitting taxes to the appropriate taxing authority." Note: Developer is responsible, not Google. (Apple handles this differently.) As for VAT filings only being necessary for selling physical product: you need to look more closely at EU Council Directive 2002/38/EC: "From now on, these services [digital delivery of software and computer services] will be taxed in the country where the customer resides rather than where the supplier is located.... For the non-EU supplier whose EU customers are non-business individuals or organisations, there will now be an obligation to charge and account for VAT on these sales just as EU suppliers have to do." http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-commerce/article_1610_en.htm http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-...