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TIGSource ForumsDeveloperBusinessUnderstanding VAT When Selling Through Steam, Other Vendors
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MrBones
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« on: July 28, 2015, 09:49:55 AM »

Hey everyone. Pretty stupid question here, but I'm inexperienced with business.
I've been reading up on VAT and such lately especially in the terms of usage for vendors such as Steam, and I'm wondering how exactly VAT responsibilities work for US/North American citizens. Do these big vendors such as Steam, GMG, GoG, and Humble handle VAT for you since they're technically the sellers? If not, do you actually have to register in every single country to pay out VAT responsibilities?


Thanks in advance.
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StrayCatRock
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« Reply #1 on: July 28, 2015, 10:43:53 PM »

Hey everyone. Pretty stupid question here, but I'm inexperienced with business.
I've been reading up on VAT and such lately especially in the terms of usage for vendors such as Steam, and I'm wondering how exactly VAT responsibilities work for US/North American citizens. Do these big vendors such as Steam, GMG, GoG, and Humble handle VAT for you since they're technically the sellers? If not, do you actually have to register in every single country to pay out VAT responsibilities?

Practically, the store vendors (Steam & co) collect the VAT from European customers and remit it to the VAT offices so you don't have to care about it.

Now if you were to sell things yourself without any third-party then you would have to comply to the EU VAT law for digital goods but you would probably die under all the paperwork  Wink
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm#one_stop

EDIT: a good example of the administrative things it implies is on Itch.io between choosing to collect the money directly from the customer to your paypal account or choosing Itch.io to collect the money and get a payout later.
« Last Edit: July 28, 2015, 10:50:55 PM by StrayCatRock » Logged

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