How to VAT & Taxes on CSGO/CS2 Skins

The question of whether and how skin sales are subject to VAT is often a source of uncertainty. This article provides an overview of the most important VAT aspects.

Entrepreneur or Non-Entrepreneur?

VAT obligations only arise to those of you who are entrepreneurs. If you are not an entrepreneur and live in the EU, you do not need to worry about anything. The same applies to residents of most other countries.

From the perspective of most countries (including the EU), whether you are an entrepreneur depends in particular on whether you sell skins on a regular basis and generate income that goes beyond purely private activity.

This classification is not always easy, especially if you sell valuable skins on a regular basis. If you are unsure, you should consult a tax advisor. It is important that you provide Skinport with accurate information about your entrepreneurial status. This is also the only way to ensure that you fulfil your VAT obligations.

Entrepreneurs: Do I Owe VAT?

If you are a seller who is an entrepreneur for VAT purposes, you may owe VAT.

For sellers from the EU, this depends in particular on whether skin sales are so-called electronically provided services (automated and with minimal human intervention). Although the skin sale is processed via an online platform, the sale is triggered in each individual case by your human action – for example, by selecting the skins to be offered, setting the price, and releasing the transfer. However, the sale is triggered in each individual case by your human action – for example, by selecting the skin to be offered, setting the price, and approving the transfer. In our view, this essential human intervention is a strong argument against an automated, purely electronic service. Nevertheless, we must point out that this legal question has not yet been finally clarified.

If your sales are not electronically provided service, the following applies within the EU:

• For sales to non-entrepreneur customers or entrepreneurs in the same country, you as the seller must pay VAT in your own country.

• For sales to entrepreneurs in another EU country, the VAT liability is reversed – the buyer is responsible for the VAT.

Similar rules apply in most countries outside the EU. However, some countries (e.g., Australia, New Zealand, Singapore) have a different approach. However, these regulations usually stipulate that Skinport must fulfil all additional obligations.

Does Skinport Pay My VAT?

One final remark is very important to us: Skinport is not allowed to fulfil your VAT obligations for you. Consequently, Skinport does not pay your VAT. If you are an entrepreneur for VAT purposes, you must therefore handle your VAT obligations yourself.

In this context, it is often argued that skin sales are automated. However, as you know, you must initiate skin sales manually in each individual case. This is because you can only sell a skin once. That the Skinport platform supports you in the sale and is subject to a certain degree of automation does not change this. Your human intervention is essential for a sale to take place.

No Legal Advice

This analysis includes a current VAT assessment and is for general guidance only. This information does not constitute legal advice. If you are unsure whether you are an entrepreneur or liable for VAT, please consult a tax advisor.

If you have any questions, please contact info@skinport.com at any time – we will be happy to recommend a suitable contact person.