Q. How much withholding taxes will be deducted from my payments?A. At the conclusion of the tax interview, the withholding rate % will be provided to you. The withholding rate may range from 0% to 30% withholding on U.S. source income, based on the information you provided during the tax interview. If your withholding rate is 30% and your country of residence has a tax treaty with the U.S., you may want to retake the tax interview and provide a U.S. or foreign TIN in order to reduce the withholding rate. Countries that have tax treaties with the U.S. can be found here:
Q. What happens if there is no income tax treaty between my country of residence and the United States?A. We will be required by the IRS to withhold 30% of your revenue share payment and remit these taxes to the IRS. You may want to consult with your tax advisors on whether you can recover these taxes as a foreign tax credit on your tax return.
Q. Why does my tax information show two withholding rates - one for royalty copyright and one for royalty film?A. These are separate tax rates that are applied depending on the content type of your sales. The royalty copyright rate will apply to US sourced sales on games and related DLCs. The royalty film rate will apply to US sourced sales on film and video. These rates do not accumulate for a higher rate of withholding and only one rate will be applied depending on the type of sales.
Q. If I update my tax interview to include a US or foreign TIN and reduce my withholding rate will Valve refund previous amounts that have been withheld from my payments?A. No, Valve does not refund withholding taxes when there is a rate change triggered by providing a TIN, as Valve would have already remitted those taxes to the IRS. You will need to consult with a tax specialist to understand if / how you will be able to recoup these funds.
Q. Why do I need to obtain an Individual Taxpayer Identification Number (ITIN)?A. Generally, a foreign person is subject to U.S. tax on its U.S. source income. Most types of U.S. source income received by a foreign person are subject to a U.S. tax rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign person's country of residence and the United States. In order to exercise the benefits under the tax treaty, you will need to complete a Form W-8BEN and that requires either a foreign TIN or a US TIN. Countries that have tax treaties with the U.S. can be found here:
If your country of residence is Slovakia, you will need to provide a US TIN in completing the Form W-8BEN to claim tax treaty benefits and apply an exempt withholding rate. A foreign TIN is not sufficient.
Q. Does applying for a TIN require me to file a U.S. tax return?A. Applying for an ITIN for purposes to exercise the benefits under the tax treaty does not require you to file a U.S. tax return.
Q. What types of US TINs are there?A. For non-U.S. persons, a TIN may be an Employer Identification Number (EIN) for individuals and businesses or an Individual Taxpayer Identification Number (ITIN) for individuals only.
Q. If I’m an individual, can I choose to apply for an EIN or ITIN?A. Yes, an individual can apply for either an EIN or ITIN.
Q. How do I obtain a US TIN?A. An Employer Identification Number (EIN), for individuals (you need to indicate you are a sole proprietor) and businesses, may be obtained over the telephone by calling (267) 941-1099. This is not a toll-free number and long distance charges may apply. An EIN may also be obtained through filing “Form SS-4, Application for Employer Identification Number” by fax which takes approximately four business days and by mail which takes approximately four weeks. More information about Form SS-4 is available on the IRS website.
Q. How long does it take for the IRS to issue an Individual Taxpayer Identification Number (ITIN)?A. It may take a few months or longer to obtain an ITIN.
VAT and Sales Tax
Q. How does VAT work on Steam Sales?A. We collect VAT in the following countries: Switzerland, South Korea, Japan, New Zealand, Iceland, South Africa, India, and all EU countries. In addition, we will be adding Australia, Serbia, and Taiwan when their laws become effective in 2017. In all other countries, we are selling cross-border and are not required to collect VAT. Steam pricing is VAT inclusive in all countries where amounts are collected. On a periodic basis, Valve remits VAT collected on sales to the appropriate tax authorities.
Q. What is the VAT rate on Steam Sales?A. Please see the Current Tax Rates section below for the current taxes which we collect.
In the summer of 2012, we began doing business in the European Union through a new, wholly-owned Luxembourg subsidiary, Valve S.a.r.l. The VAT rate was determined by where the seller is located (i.e. Valve S.a.r.l.) and therefore, we were using the Luxembourg's VAT rate of 15% on all EU sales. Effective January 1, 2015, VAT regulations were changed such that the VAT rate is determined by the location where the customers is based rather than where the seller is located. Therefore, EU country-specific VAT rates of where the customer is located apply and we are no longer be able to use a flat 15% VAT rate on EU sales. For all non-EU countries, the standard VAT rate for the applicable country applies.
Q. Do you charge sales tax and if yes, in what states?A. We charge sales tax on Illinois and Washington state sales only. Sales tax is calculated and then added on top of the Steam Price. On a periodic basis, Valve remits sales tax to the revenue authorities.
Q. Do you pay us on amounts, net of taxes?A. We pay you based on Net Revenues which is Gross Revenues less Applicable Adjustments. Gross Revenues includes VAT and sales tax, if applicable. Applicable Adjustments include taxes, returns and chargebacks. Net revenue is then multiplied by the revenue share % resulting in the amount to be paid to you, net of applicable withholding taxes. Please refer to the Steam Distribution Agreement which you signed for further details on Revenue Share Payment.
Q. What is my responsibility regarding VAT, sales tax, or other similar taxes?A. We can only provide you with information on how we handle VAT and sales taxes. You will need to consult with your tax advisors on your own tax obligations. In the monthly Steam Sales Report which can be viewed on the secure partner site (https://partner.steampowered.com/) under the "Reports Tab", you will find a link at the bottom of the report called "Steam Sales by Country". This may assist you in calculating your own tax obligations, if any.
Current Tax Rates
Steam currently collects the below taxes. Taxes may be inclusive, meaning that they are included in the price; or additive, meaning that they are added at checkout.
In addition to the taxes in this table, we collect sales tax in some US jurisdictions. These US sales taxes are always additive.
|Country (?)||Country Name||Tax Rate||Tax Type|
|IM||Isle of Man||20%||Inclusive|
|KR||Korea, Republic of||10%||Inclusive|