VAT and international shipping

VAT (value-added tax) is a consumption tax charged in most countries outside the United States, including every EU member state, the UK, and Australia (where the equivalent is called GST). Standard VAT rates in Europe mostly range from about 17 to 27 percent, with 19 to 21 percent typical in the biggest markets. For a publisher, the key fact is that VAT applies to games entering these markets, either collected at the border on import or charged on the sale, and someone has to account for it.

For bulk imports, the pattern is straightforward: when your container clears customs in Germany or the UK, import VAT is charged on the shipment value. If you are VAT registered in that country you can typically reclaim or offset it against VAT you collect on sales. Most small publishers do not register in every country. Instead they lean on their fulfillment partner or an Importer of Record service, which imports the goods under its own registration and handles the tax accounting as part of its fee. Ask any prospective EU or UK fulfillment partner exactly how they handle import VAT before signing.

For crowdfunding specifically, backer pledges to EU and UK addresses are generally treated as sales that owe VAT. The clean solution is the customs-friendly regional model: import in bulk, settle VAT on import through your partner, and deliver domestically so backers never see a tax bill. The messy alternative, shipping individual parcels internationally, means each backer risks paying VAT plus a carrier "disbursement fee" at their door, which reliably generates furious messages.

Two more specifics worth knowing. Since Brexit, the UK is a separate VAT regime from the EU, so a campaign serving both needs both handled. And the EU's IOSS scheme (Import One-Stop Shop) simplifies VAT on low-value parcels under 150 euros shipped from outside the EU, which can help with pledge manager add-ons and replacement parts. VAT rules change and vary by country, so for a large campaign it is worth an hour with your fulfillment partner's compliance team, or an accountant, before you promise anything to backers.