VAT for streaming services
Streaming media has changed the way media services are being delivered to customers. From brick and mortar stores with physical products to digital streaming of content being broadcasted directly to homes and personal devices worldwide.
Supply and transaction chains are more difficult to track, making the VAT process hard to follow and stay compliant.
Fourth industrial revolution
As streaming services transform the gaming landscape, VAT compliance becomes increasingly complex. With shifting revenue models, such as subscriptions, microtransactions, and cross-border digital services, ensuring accurate VAT handling is crucial.
Companies must address varying regional VAT regulations, reporting standards, and digital transaction frameworks to stay compliant while adapting to the fast-growing demand for game streaming services. Our solutions streamline VAT management, helping gaming businesses maintain compliance effortlessly as they scale in this dynamic market.
The streaming revolutions started with the music industry that shifted from being delivered by physical means, to streaming service platforms like Spotify, Pandora or Apple music. This means that the customers shifted away from physical music ownership to continual music rental through subscription services.
The second streaming revolution belongs to video streaming. With the introduction of YouTube back in 2005, this industry has evolved to the point where every media company has launched (or is about to launch) their own OTT and VOD services. Companies such as Disney or Apple have introduced their own services to get a fair share of the market which is now dominated by Netflix.
The next major shift in entertainment will be game streaming, with leading companies like Sony and Microsoft adopting this model. Game streaming, along with the “as-a-Service” (aaS) business model, will play a crucial role in a video game industry projected to exceed $300 billion by 2025. These innovations bring new compliance challenges, especially for VAT, as companies move from physical sales to digital, subscription-based models that require meticulous regulatory oversight.
VAT challenges on streaming media
Global VAT Compliance has the knowledge and experience to ensure your company fully VAT compliant for streaming media services wherever you are delivering your content, experiences, or services.
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 digital services this is required, such as Switzerland, Serbia and Albania.
GVC is up to date with all the new and ever changing regulations as so your company is complying with local tax requirements so you can focus on your business and expansion opportunities across the globe.
What to know more? Contact us and focus on your business expansion.