I have some doubts as to how taxation works for the Unreal Market, especially for international sellers. I could ask directly to Epic but thought that having a public response would be more interesting for the community.
So as I understand the tax breakdown is somewhat like this:
Asset Value: 100% (the value show in the marketplace listing)
VAT (Value Added Tax): varies but internationally around 20% - some countries demand that it is computed in the price before, others that it is added at checkout.
Epic’s Cut: 30% of the post VAT value
Tax Withhold: from 0% to 30% depending if your country has double taxation agreement with Switzerland (Epic’s home)
Bank transfer fees and currency conversion fees: can vary a lot.
Local taxes: according to your country’s regulation.
Epic Royalties (5%?): Do you pay Epic’s royalties for assets sold (not games)?
- 100% - VAT (eg. 20%) = 100% * 80% = 80%
- Epic’s Cut (30%) = 70%* 80% = 56%
- Tax Withhold (eg. 30%) = 70% * 56% = 39.2%
- Transfer/Conversion fees (eg. 7%) = 93% * 39.2% = 36.45%
- Local Taxes (eg. 15%) = 85% * 36.45% * 30.98%
- Epic Royalties (5%?) = 30.98% - 5% = 25.98%
So a 10 USD item pays the seller 2.58 USD, in this example.
Can someone confirm if it is somewhere close to this?