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.
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
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.
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.