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Sayid Ahmed

VAT for in-game currency?

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In the UK, does your company have to charge VAT on selling in-game currency for an online game? I guess another question would be: is VAT applicable to any online transaction you charge?

Assuming you are already VAT registered and yadaya.

Thanks.

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Might I suggest asking the VAT helpline?

They're the ones who are likely to know.

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Unless you can conceivably demonstrate that your game and thus in-game currency passes as a form of "book", "sport", "health" or "stuff for disabled people" (I strongly assume it won't pass as "food"), your government will in general want to see money from you.

On a more serious note, you may (possibly) be able to evade VAT under "betting, gaming, and lotteries" (VAT notice 701/29), but this will open a lot of other problems that you probably want to avoid (minors). Note that subscriptions are not exempt.

If your customers are outside the EU, you may also not be required to charge VAT, but there's some considerable administrational burden with that, which is probably not worth it. It's very likely a lot easier and cheaper to simply have everyone pay VAT.

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