you cant avoid tax, steam will also tax you with the same percentage for France. The only difference between steam and itch.io is the developer getting more money than steam.
Viewing post in Tax when buying from Europe
Euh ?
> The only difference between steam and itch.io is the developer getting more money than steam
So why on earth a game sold à 25% on itch.io is more expensive of the same game on steam ( the final price I really pay ) ? It' s a nice declaration but that's not true and aquadine is an example but each try a get the same conclusion.
For the same price or a small diff, I will buy on itch.io but I don't like to pay more just to use itch.io.
Either steam find a way to pay less tax, either there is something wrong is your declaration. ( the fact that steam take more is true I agree ).
Note that in all cases, itch.io sell game in $, steam sell game in europe in €;
Example: Aquadine (https://softcolors.itch.io/aquadine) : 25%sale : 14,99 $ --> Tax: $3.00 (20%) --> $17.99 --> 14,7 €
Steam : normal price --> 16, 79€ --> 25% --> 12,6 € ( ~13% sale from itch.io price )
To be honest, this is not a big deal, this is just a feedback I want to provide to itch.io. feel free to ignore. In aquadine case, I may even take the game at the normal price to participate and encourage the dev.
The reason itch.io is American dollars is because it is following rules about being an American company and following EU/UK tax laws that are set in law. This can change if itch.io has people working in a EU location just like Steam, Nintendo, Microsoft, etc. However itch.io does not have money for such things.
Another thing is that Steam has broken many laws both EU and US. The current new one is about Valve Corp threatening indie developers and lawyers believing Valve corp breaking antitrust laws: https://mybroadband.co.za/news/gaming/396295-steam-allegedly-threatened-to-remov...
https://www.stropse.com/lawsuit-accuses-valve-of-abusing-steam-to-keep-game-pric...
In EU, the same thing: https://www.cnbc.com/2021/01/20/eu-fines-pc-gaming-giant-valve-for-antitrust-pra...
https://www.engadget.com/2019-09-19-french-court-valve-steam-resold.html
the legitimacy of steam following tax laws is up in the air because unlike Nintendo, Microsoft and Playstation who have offices in EU, Valve does not in theory.
also yes someone did try to get information on EU offices: https://steamcommunity.com/discussions/forum/1/617329505861178146
Luxembourg is a well known tax avoidance or evasion: https://en.wikipedia.org/wiki/Soci%C3%A9t%C3%A9_%C3%A0_responsabilit%C3%A9_limit...
https://www.investopedia.com/ask/answers/100115/why-luxembourg-considered-tax-ha...
This is the answer as to why Steam offers lower price, they may or may not be doing something illegal.