Tax handling on Gamefound

NOTE: Tax rates for any project can be reviewed in the Locations and Sublocations tabs of Shipping & Taxes settings in the project admin view.

Gamefound functions as a marketplace facilitator in the EU and UK. In practice, this influences how orders from backers in these regions are processed and may impact the way taxes are handled.

VAT in the EU

All depends on i) whether you are established in the EU, and ii) if the parcel you are sending to the backer is dispatched from the EU territory or not. Based on that, following scenarios are possible:

	EU VAT treatment
Where are your headquarters based?	Parcels sent to EU backers from outside of EU directly (e.g. from China).	Parcels sent to EU backers from EU-based hub/factory (imported in bulk containers or manufactured in the EU).
European Union	VAT is collected during checkout. Gamefound handles VAT for orders under 150 EUR; for orders above this threshold, the creator is responsible.	Creator is responsible for handling VAT.
Rest of the World	VAT is collected during checkout. Gamefound handles VAT for orders under 150 EUR; for orders above this threshold, the creator is responsible.	Gamefound handles VAT - tax is collected during checkout.

What happens if Gamefound is responsible for handling VAT:

VAT is collected on pledges during all phases of the project (Crowdfunding, Late Pledge, Pledge Manager).
Backers pay VAT at the time their pledge payment is processed.
The applicable VAT rate depends on the customer’s country.
Gamefound remits VAT funds to the appropriate authority.

VAT in the UK

The rules are very similar to those outlined for the European Union. Following scenarios may apply:

	UK VAT treatment
Where are your headquarters based?	Parcels sent to UK backers from outside of UK directly (e.g. from China).	Parcels sent to UK backers from UK-based hub/factory (imported in bulk containers or manufactured in the UK).
United Kingdom	VAT is collected during checkout. Gamefound handles VAT for orders under 135 GBP; for orders above this threshold, the creator is responsible.	Creator is responsible for handling VAT.
Rest of the World	VAT is collected during checkout. Gamefound handles VAT for orders under 135 GBP; for orders above this threshold, the creator is responsible.	Gamefound handles VAT - VAT is collected during checkout.

Similarly as in the EU, when Gamefound is responsible for VAT:

VAT is collected on pledges during all phases of the project (Crowdfunding, Late Pledge, Pledge Manager).
Backers pay VAT at the time their pledge payment is processed.
The applicable VAT rate depends on the customer’s country.
Gamefound remits VAT funds to the appropriate authority.

NOTE: We do not provide services as a VAT agency because, under the regulations, we are the entity responsible for the VAT. As an Online Marketplace, we are obligated to account for and remit VAT directly, rather than acting on behalf of the Creator.

Tax Configuration

Before you launch the campaign, you must check the tax configuration in countries where Gamefound does not handle taxes. Make sure the default tax rate for each location is correct (set to 0 by default), or change it according to your tax jurisdiction.

To change tax value, go to "Shipping" -> "Locations" and select a location from the list by clicking "View details". There, you will be able to change the tax rate for that Location.

Different tax rates for various products

Your project may contain rewards that should be taxed with reduced VAT rates in certain jurisdictions. In such a case, contact your Account Manager to request the proper tax rate configuration.

How to obtain tax documentation

Once you are ready to fulfill your campaign please reach out to your Account Manager in order to receive all the necessary documentation/information.