Twitch streamers could have payouts affected by new EU tax law
Twitch/UnsplashNew EU tax laws could create some headaches for Twitch streamers when it comes to payouts, especially if they don’t tick off a new box that has popped up on the streaming platform.
As Twitch has become a genuine way for streamers to make money, some have managed to strike it rich and make a career from it. Others do it as a side hustle to make some money on top of their actual job.
It isn’t all sunshine and rainbows though. If you make it big, Twitch naturally takes a cut of your subscriptions and sponsorships. There has been plenty of controversy about that. There are also tax considerations to be had, particularly for non-US streamers, and that’s before you get into money made from donations.
In recent months, streamers in Turkey and the Middle East have been affected by payout issues, prompting a few to turn away from Twitch for a period of time. Others have also been banned for tax evasion. Now, streamers in Europe are likely to be affected if they don’t complete a simple task on their channel.
EU streamers could be demonetized for not completing new Twitch task
Streamers in Europe will now have to complete a DAC7 Interview in the Twitch Creator Dashboard, answering questions about their tax status and other such income-related queries.
This is because of the new DAC7 tax law that now affects Twitch as they have to report “information regarding earnings generated by users.” So, unless you’re making money on Twitch, you don’t have to worry about it.
Not completing the interview will lead to payouts being blocked and channels being demonetized and removed from the Partner/Affiliate programs. So, it’s pretty imperative that streamers sort it out.
It only affects those in the European Union, so streamers from other regions – including the UK – won’t have the requirement to complete the interview.
The deadline to complete it has not been made public by Twitch and has only been shared with streamers. Though, it’ll likely be pretty soon.