As tax liability varies from country to country, providing rewards to a backer based in a specific region might create a VAT liability for you.
For creators using Kickstarter’s Pledge Manager tool, we will collect VAT (value-added tax) on items shipped to backers in the EU and the UK, when Kickstarter is the deemed supplier and, as authorized by the creator, when the creator is the responsible party. You can read more about this here.
In some cases, as a deemed supplier, Kickstarter will be responsible for remitting VAT collected on the creator's transactions to the relevant tax regulator. In other cases, creators will be responsible for remitting VAT, and any funds collected on Kickstarter toward value-added tax will be disbursed to the creator. Creators will be provided with tax reporting that outlines the responsible party for each VAT transaction.
VAT will be determined by using a combination of the creator’s VAT registration, business location, the shipping origin and destination, and item-based tax codes.
Please note that Kickstarter does not collect VAT for creators who choose not to use Kickstarter’s pledge manager tool. In these cases, ensuring that VAT is correctly accounted for on these transactions is the responsibility of each individual project creator.
Tax services provided by Kickstarter do not constitute tax advice and creators are encouraged to work with their tax advisor to ensure compliance with applicable tax regulations.