Don’t risk HMRC fines.
FUT Tax, which stands for Fifa Ultimate Team, is a type of electronic sports tax. This form of tax is charged on any player-to-player trade by the gaming company Electronic Arts (EA). If you play the video game Fifa and buy and sell on the Fifa Ultimate Team part of the game, you will be charged FUT tax.
FIFA Ultimate Team is a mode in the popular video game series Fifa. It enables you to build teams using football players from the various leagues in the world. You can play offline and/or online to win coins to buy better players or packs which contain random players.
There is a trading element to FUT, where you can buy and sell your players, or you can go to the store and buy packs. You can buy these packs either with virtual coins you make in the game or by using real money. The buying and selling of FUT coins mean that there are some real-life tax implications to be aware of- such as FUT tax.
EA charges 5% tax on FUT transactions. These transactions come from selling on the FUT transfer market.
So, if you play Fifa and FUT, it’s important to be aware of this tax when it comes to you both selling and bidding on players with your coins. As an example, if you sell an item for 1000 coins, you’ll receive 950 coins after deduction of the tax.
EA charges the 5% tax to keep the market under control. Some FUT traders and coin sellers acquire the games’ ‘coins’ at a rapid rate, which is why they implemented a tax structure.
It’s likely that if you don’t play FUT religiously, you probably won’t even notice the taxes unless you are a coin seller yourself. However, it’s important to be aware of FUT tax for when you are involved in more significant trading numbers.
Good news! You don’t pay via a tax return. EA deducts the 5% automatically during each transaction.
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