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Value added tax for foreign income

March 24, 2019 | 30,00 EUR | answered by Steuerberater Knut Christiansen

Hello!
First of all, thank you for your help.
My question is specifically about value-added tax.
I am a streamer (content creator) on the online platform Twitch (similar to YouTube but live).
Twitch is an American company. When I stream there, my viewers can subscribe. I receive money for that. They can also donate bits, of which I also receive a share.
Now to my question, do I have to pay value-added tax on these income? I was told that these income from Twitch are taxed in America and therefore I do not have to pay tax again in Germany?

Thank you for your help!

Steuerberater Knut Christiansen

Good morning,

I assume that you are working with Twitch and receive compensation (a kind of commission) from Twitch. In this case, the place of supply according to paragraph 3a(2) of the German VAT Act is in the USA and would be subject to sales tax in the USA. In this case, the so-called reverse charge procedure generally applies, where the recipient of the service (Twitch) is liable for the sales tax. If you are billing customers directly, please let me know and I will further clarify the situation.

Best regards,

Knut Christiansen
Tax advisor