From Google:

We’re writing to let you know that Google Play will be supporting tax-inclusive prices in Brazil. Prices set in the Developer Console must be tax inclusive. We encourage you to log into your Developer Console  and make any necessary adjustments to your pricing. To learn more, please visit our Help center at http://support.google.com/googleplay/android-developer/bin/answer.py?hl=en&answer=138000

We would also like to remind you that we have introduced Buyer’s Currency in Brazil. All prices for this locale will be in the Brazilian Real (BRL) currency.

IMPORTANT:  If you have not manually set pricing for Brazil in the Google Play Android Developer Console by Dec 17, 2012, Google Play will automatically assign Brazilian Real prices for your products. Google Play assigns a Brazilian Real price based on the price of your app in your home currency, converted to Brazilian Real using the exchange rate on that day. Google Play will also automatically add taxes based on the tax rate you defined in the Google Checkout Merchant Center.  This is a one-time conversion associated with the transition to the new Buyer’s Currency model. If you have already set your per-currency prices manually, Google Play will not override them.

You can continue to set and adjust the prices of your apps at any time, in your home currency and in any Buyer’s Currency available.

For more information about how Buyer’s Currency works, please visit the Google Play Help Center:

http://support.google.com/googleplay/android-developer/bin/answer.py?hl=en&answer=1169947

We are aware that in our communication from December 12, 2012, we listed wrong currency for Brazil. Rest assured that the currency we are supporting is Brazilian Real. Please accept our sincerest apologies for the confusion.

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