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VAT / GST on video games

 

The Video Game industry is evolving rapidly, and the digital distribution of video games and Gaming as Digital Services are becoming the norm.

New supply and transaction chains are making hard to apply the correct VAT treatment which might lead to inaccurate VAT calculations and allocations.

Global VAT Compliance - VAT on video games

A multi million industry

There are 2 main factors that are revolutionizing the video games industry, which have a direct impact in VAT and you should be aware of them:

 

1. New Supply Chain

Video game development now relies on multidisciplinary teams—Artists, Content Creators, Animators, Audio Engineers, Game Designers, and Programmers—often spread across the globe. The shift from physical to digital distribution has extended game life cycles through DLCs, cross-platform play, and online interaction. Additionally, the rise of mobile gaming and advancements in cloud-based gaming services are set to impact the VAT supply chain.

2. New Monetization Models

As game technology, connectivity, and distribution evolve, so do revenue models, affecting VAT positions. Beyond traditional retail, digital distribution through platforms like Epic Games, Steam, and PlayStation Store now dominates, alongside mobile app stores. Subscription models and microtransactions further capitalize on digital opportunities.

VAT challenges on Video Games

The Video Game industry is evolving rapidly, and the digital distribution of games and Gaming as Digital Services is becoming the norm. New supply and transaction chains are making hard to apply the correct VAT treatment which might lead to inaccurate VAT calculations and allocations.

 

Global VAT Compliance has the knowledge and experience to make your company fully VAT compliant while you deliver more creative, interactive and immersive gaming experiences to customers all over the world.

Interested in VAT on Video Games?

Is your digital company VAT compliant?

GVC is up to date with all the new and ever changing regulations. This ensures that your company is complying with local tax requirements so you can focus on your business and expansion opportunities across the globe.

 

We offer comprehensive coverage across the globe providing services in Europe, the Asia Pacific region, Middle East and South and North America. Global VAT Compliance is able to provide Fiscal Representation in countries where even for Video Game companies this is required, such as Switzerland, Serbia and Albania.

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