Taxes FAQ

Reporting

Q. What annual tax reporting of our earnings will Valve provide to partners? A. The answer depends upon a number of factors including the type of income and the information you provided to us through the tax interview, but revenue share payments are classified as a royalty and reported as follows:



If you submitted a W8 as a non-US tax payer, you will receive a 1042-S showing your US Source income and the amount of Withholding Tax paid by Valve on your behalf.

If you submitted a W9 as a US Tax payer, you will receive a Form 1099 unless you are a C or S Corporation (or LLC filing as a C or S Corporation.) We are not required by the IRS to provide Corporations with a Form 1099 for royalty payments. In prior years, we provided a Form 1099 to all US partners, but starting with the calendar year 2018, we no longer will send 1099s for C or S Corporations. To calculate your earnings, please refer to your payment history in Steamstats reports at: https://partner.steamgames.com/doc/finance/payments_salesreporting

The answer depends upon a number of factors including the type of income and the information you provided to us through the tax interview, but revenue share payments are classified as a royalty and reported as follows: Q. When should I expect to receive these annual tax forms? A. We provide annual tax forms to partners in accordance with the IRS’ deadlines. The IRS requires us to send 1099 forms by January 31st and 1042-S forms by March 15th. If you elected electronic delivery of your tax forms, they will be emailed to you. If not, they will be physically mailed to you. We encourage the use of email for faster, secure and more efficient delivery. Please ensure that we have a valid, working email in our system and update your mailing address as needed.



Please watch for an email from taxclientsupport-valve@taxidentity.com with the subject line "MESSAGE FROM VALVE - [1099 or 1042S] DOCUMENTATION ENCLOSED". Please check your spam/junk folders if you cannot locate it. Please do not delete this email. If you do not receive this email, you may contact us at financevalve@valvesoftware.com.

Withholding Taxes

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:



http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties-A-to-Z





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: http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties-A-to-Z 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.





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.





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.





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. What is the meaning of "US Share" on my monthly report? A. This is a memo column that represents the portion of your payment that is derived from sales made in the US - or the U.S. source income. This is used to calculate your withholding tax, if applicable, by multiplying the US Share by the appropriate withholding tax rate.





This is a memo column that represents the portion of your payment that is derived from sales made in the US - or the U.S. source income. This is used to calculate your withholding tax, if applicable, by multiplying the US Share by the appropriate withholding tax rate. Q. How do I see what my withholding rate is? A. Please login to your partner account to see the results of your tax interview including the withholding tax rate we will use. Your tax information is at the bottom of the page under Users & Permissions/Company Details. Please note that you must have Actual Authority permissions to access this information.

US TINs

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:

http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties-A-to-Z



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.





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: http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties-A-to-Z 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.





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.





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.





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.



http://www.irs.gov/pub/irs-pdf/fss4.pdf 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/GST/JCT work on Steam Sales? A. Please see the Current Tax Rates section below for the list of countries where this type of tax is collected and the applicable tax rate. The list is updated as new laws become effective. In all other countries, we are selling cross-border and are not required to collect. Steam pricing is VAT inclusive in all countries where amounts are collected. On a periodic basis, Valve remits the tax collected on sales to the appropriate tax authorities.



Please see the Current Tax Rates section below for the list of countries where this type of tax is collected and the applicable tax rate. The list is updated as new laws become effective. In all other countries, we are selling cross-border and are not required to collect. Steam pricing is VAT inclusive in all countries where amounts are collected. On a periodic basis, Valve remits the tax collected on sales to the appropriate tax authorities. Q. Do you charge sales tax and if yes, in what states? A. We charge sales tax in states as required by applicable law. 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.



We charge sales tax in states as required by applicable law. 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.



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

Currently Collected

Country (?) Country Name Tax Rate Tax Type Effective Date AE United Arab Emirates 5% Inclusive 15 Feb, 2018 AT Austria 20% Inclusive 1 Jan, 2015 AU Australia 10% Inclusive 1 Jul, 2017 BE Belgium 21% Inclusive 1 Jan, 2015 BG Bulgaria 20% Inclusive 1 Jan, 2015 BY Belarus 20% Inclusive 1 Jan, 2018 CH Switzerland 7.7% Inclusive 1 Jan, 2018 CL Chile 19% Inclusive 10 Aug, 2020 CO Colombia 19% Inclusive 3 Dec, 2018 CY Cyprus 19% Inclusive 1 Jan, 2015 CZ Czech Republic 21% Inclusive 1 Jan, 2015 DE Germany 16% Inclusive 1 Jul, 2020 DK Denmark 25% Inclusive 1 Jan, 2015 EE Estonia 20% Inclusive 1 Jan, 2015 ES Spain 21% Inclusive 1 Jan, 2015 FI Finland 24% Inclusive 1 Jan, 2015 FR France 20% Inclusive 1 Jan, 2015 GB United Kingdom 20% Inclusive 1 Jan, 2015 GR Greece 24% Inclusive 1 Jun, 2016 HR Croatia 25% Inclusive 1 Jan, 2015 HU Hungary 27% Inclusive 1 Jan, 2015 ID Indonesia 10% Inclusive 1 Jul, 2020 IE Ireland 21% Inclusive 1 Sep, 2020 IM Isle of Man 20% Inclusive 16 Feb, 2016 IN India 18% Inclusive 28 Sep, 2017 IS Iceland 24% Inclusive 1 Mar, 2017 IT Italy 22% Inclusive 18 Jan, 2019 JP Japan 10% Inclusive 1 Oct, 2019 KR Korea, Republic of 10% Inclusive 1 Mar, 2017 LT Lithuania 21% Inclusive 1 Jan, 2015 LU Luxembourg 17% Inclusive 1 Jan, 2015 LV Latvia 21% Inclusive 1 Jan, 2015 MC Monaco 20% Inclusive 16 Feb, 2016 MD Moldova, Republic of 20% Inclusive 1 Aug, 2020 MT Malta 18% Inclusive 1 Jan, 2015 MX Mexico 16% Inclusive 1 Jun, 2020 MY Malaysia 6% Inclusive 1 Jan, 2020 NL Netherlands 21% Inclusive 1 Jan, 2015 NO Norway 25% Inclusive 1 Jan, 2017 NZ New Zealand 15% Inclusive 1 Mar, 2017 PL Poland 23% Inclusive 1 Jan, 2015 PT Portugal 23% Inclusive 1 Jan, 2015 RO Romania 19% Inclusive 1 Jan, 2017 RS Serbia 20% Inclusive 1 Apr, 2017 RU Russian Federation 20% Inclusive 1 Jan, 2019 SA Saudi Arabia 15% Inclusive 1 Jul, 2020 SE Sweden 25% Inclusive 1 Jan, 2015 SG Singapore 7% Inclusive 1 Jan, 2020 SI Slovenia 22% Inclusive 1 Jan, 2015 SK Slovakia 20% Inclusive 1 Jan, 2015 TR Turkey 18% Inclusive 15 Feb, 2018 TW Taiwan 5% Inclusive 1 May, 2017 XC XC 6% Inclusive 1 Sep, 2020 ZA South Africa 15% Inclusive 1 Apr, 2018

To Be Collected in the Future

Country (?) Country Name Tax Rate Tax Type Effective Date DE Germany 19% Inclusive 1 Jan, 2021 IE Ireland 23% Inclusive 1 Mar, 2021

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.