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30% Tax what does it mean?

A topic by Danakos created Jun 22, 2020 Views: 703 Replies: 5
Viewing posts 1 to 3

Hi there! Sorry, this is probably an overanswered question, but it's still not very clear to me if I release a game, then regardless of the my geographic position do I have to compile USA taxes? From what I understood, once you release a game 30% of your income would go to  the VAT, but does this mean I have to compile foreign tax documentation? Does the Collected by itch.io (Payouts) means that it's itch.io that takes care of this part?

 I'm a student, I don't have an income to declare because I don't have a job, would I need to register as a professional freelancer If I wanted to compile the tax form in my country (Italy)? And If I start earnining from a game ( a big BIIIIIG IF) and start paying the VAT, do I have to continue paying it or is it only if I earn something? 

Sorry for the broken english and probably repetitive question

Have a nice day! :)

Moderator moved this topic to Questions & Support
Moderator(+1)

Uh, no, the 30% sales tax is NOT the same as VAT. It's something Itch has to pay for you because you're technically selling out of the US where the site is based. VAT is applied on top of the base price, and yes, Itch also takes care of it for you if you choose that option.

You only have to worry about the money Itch sends to you; ask a local accountant to be sure, because it depends on your country's laws.

Ok, I see, thank you very much!

but I still have to pay the 30% one to the usa?

Moderator

No, you don't have to pay that. Itch pays it for you and sends you the difference. And if you fill in your tax interview correctly, it's possible to have that tax reduced or waived, depending on trade accords that might exist between your country and the US.

ooooooh, ok thanks!

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