Hi guys, I'm pretty much new to Itch.io. I am reading the ToS and Tax info. I do want to publish a game. Now, If I choose "Payment collected by Itch.io", it also says the following
"

In order to receive payouts from itch.io you must complete a tax interview so we can correctly prepare tax documents for you at the end of the year."

What does it mean to "prepare tax documents for me", do I have to submit those at the end of the year somewhere in my country or I don't have to do anything at all? After auto-paying VAT and withholding tax and what not. It does sound like a lot of work for a small game. Thanks.

Hi! I just finished creating and publishing my asset pack a few days ago and have went through this "tax interview". From what I understood, and if I'm wrong someone please correct me, it's just that itch.io will prepare a yearly organized document that includes all your sales so you can efficiently process your tax remittances in your respective country.

So basically, itch.io says "Hey, here's all the sales you made this year, go through it and makes sure you process your taxes at your country properly with this information". Though you still need to do something for the interview, which is to provide a tax number. If you're a US citizen I think you need to provide some more info but from what I remember it doesn't seem to much of a hassle (Im not a US citizen so I skipped them). 

I see. So We do need to submit the document to our respective country and they will tax us based on it.  Ah man, 21st century can't make a dime on the side without being taxed. I got it.

The tax interview is for your itch.io to know whether they must deduct tax from your earnings or not. Because they are based in the US, they must withhold tax from your earnings unless you live in a country that has a bilateral tax treaty with the US and they need proof of that, like your foreign income tax number. 

It doesn't have anything to do with whether you'll owe  taxes or not. That is country specific. Some countries don't tax hobby income, or side income below a certain threshold, other countries do. Even if itch.io by law must withhold tax, it doesn't follow that you'll owe the tax. You would need to fill in a tax return and claim it back if you don't owe it.