When you buy a game. does the VAT go to america or the local goverment?

by orenog. Posted on Jul 01, 2020    1    5


for example if I buy a game in russian rubles, what taxes go to the USA and what goes to RUSSIA?


Comments

Runiat

I am not familiar with Russian law.

Within the EU, buying a game (or anything else) from a non-EU country while within the EU worth ~€10 or more is subject to the VAT of the country you're in, and the VAT is paid to that country.

The country you're buying from makes it's own laws and could apply it's own VAT to sales made from within the country. Most would rather apply no VAT at all to foreign individuals to encourage extra spending in duty free shops, boosting the country's trade balance.

) note: items worth less than ~€10 are also subject to VAT, but it's not enforced as rigorously.

Jondycz 4

Wrong. In EU, vat goes to either Belgium or Luxemburg, wherever valve is officially located in the EU. It's illegal to charge eu members a price without VAT and then expect them to pay something. So you pay more to the company who sells the item and then the company pays all of the VAT it has collected to the country it is based in.

Not sure if EU ruled yet, but I believe it still hasn't, but in the future, companies will be forced to pay VAT in the countries of their customers. Meaning if you're from Germany, steam will have to pay German government, etc. For now, it's not like that. Unless I've been living under rock for the past year.

Runiat

>Wrong. In EU,

How can I be wrong about something I don't talk about?

DakotaThrice 3

How can you not be talking about it when you commented on it.

vertualx 3

It goes to the home country.