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What exactly is in the tax interview?

A topic by Inbar Koren created 34 days ago Views: 363 Replies: 5
Viewing posts 1 to 2

Hi there! I'm just starting out here on itch.io and I need to select my payment method. It looks like the one that would be most comfortable for me is the one where itch.io handles the payments, but to set that up I they asked for a tax interview on the website, and tbh I'm kind of scared to put my details there and I don't even know what they ask for since I've never done anything like this before. What do they ask there? What do I need to expect? (I live outside of the US btw, I saw that it's important for this thing)

(2 edits) (+3)

Itch is a company located in the USA, so they can charge for your games and then legally give you that money. These transactions must be reported to the US tax authority (the IRS), and to do so, you must be identified by completing the interview.

So, it's not a whim of Itch, but rather a legal step you must take to be able to use Itch or any other company located in the USA. If you want to sell on Steam, for example, you must also go through a similar process.

A couple of things you should be clear about:

The interview isn't validated by Itch; rather, it's a third-party company specialized in the subject. If I recall correctly, it's the same company that validates the interviews if you sell on Steam.

Validating the interview costs $3, which is deducted from your first withdrawal. So, even if you complete the interview today, it typically won't be validated before you request your first withdrawal.

If someone in the US buys your game, the government requires Itch to withhold 30% of that sale as taxes. Depending on the country you live in, this percentage may be lower, even 0%, but it depends on the treaties between your country of residence and the US.

I don't remember the exact questions, but basically it's your country of residence, full legal name, legal address, and usually the tax identification number you use in your country.

--------------------------------------------

The other alternative is for you to sell directly, in which case you would be a company selling from your country. This avoids the interview, but you, as a company, are responsible for managing all applicable taxes.

thank you! That's a really detailed explanation and it helped a lot ☺️

Do you know if “Validating the interview costs $3, which is deducted from your first withdrawal” is explained by Itch.io somewhere we can all read it? I don’t remembering coming across that in any of the official terms.

https://itch.io/docs/creators/payments#tax-interview

Tax Identity — Upon completing your tax interview we used a third-party service to verify the identity you provided. This is a federal requirement. A flat fee of $3.00 will be applied to your account once.

Thank you! I must have forgotten that fee is associated with the tax interview.

It’s kind of odd. My tax interview for another distributor using the same service was pretty much applied automaticaly to Itch.io and approved when I visited the offered link. That costs $3? (rhetorical question) I guess it’s nice not to repeat the steps for every site.