Frequently Asked Questions
Q: Is it possible to set up individual settlement banks per region?
Q: Is a user's taxes based on his/her billing address or channel store (where he/she signed up for Roku)?
A: Pricing comes from the price tier file based on the user's country (i.e. channel store), but taxes are calculated based on the user's billing address. Country/channel store doesn't necessarily logically match the billing address information, depending on where the user signs up versus what they input as their billing address.
Q: Does Roku issue a withholding tax certificate?
A: Roku pays all withholding to the IRS on a monthly basis and will be filing their annual report in January. At that time, the developer will get a statement with the amount of tax withheld for the year that they can use for tax purposes. Roku does not generally issue a withholding tax certificate to developers.
Q: Who remits taxes, Roku or the partner?
A: As long as this is under Roku Standard billing, Roku submits the taxes to the appropriate taxing jurisdiction – but as a reminder only for countries where we are obligated to do so:
As countries in LATAM change their rules, we will add those countries as well.
Q: During the refund, will amount to be refunded to the customer be inclusive of prorated tax or will it be net?
A: On a refund, the customer/end user will be refunded the entire amount, but the reduction of the revenue share will be exclusive of the tax, consistent with the original revenue share calculation.
Q: Are service fees charged on a per transaction basis?
Users and developers are no charged service fees.
Q: What is the default settlement currency for an unsupported currency on Roku platform?
For LATAM and Rest of World regions, the currency is US Dollars.
Q: Will Roku be providing us with remittance reports detailing the transaction reference number, gross amount, amount of tax withheld, amount of service fees per assigned settlement banks?
A: Taxes are handled invisibly to developers. Transaction reports are available in the developer dashboard.
Q: We notice that in some countries payment is inclusive of tax, and in some countries it is not. For example, Canada is exclusive of tax, but the UK is inclusive of tax. Is there a way for us to know this, in order to display a message to our users, and let them know if tax is included or not?
A: The presentation of price is always in accordance with local country rules.
Currently we reflect the pricing exclusive of tax in the US and Canada. The rules in the EU require that the price is inclusive of tax. Currently in LATAM, we are not subject to tax, so the price is without tax, but the rules are changing and will soon require us to present the price inclusive of tax and start collecting in some countries.
The users in those countries should not be surprised on how the tax is reflected as the rules are common, just like in the US where we know all pricing is exclusive of tax and that sales tax will be added on at purchase.
Q: Do you submit UK VAT to HMRC?
A: Yes, we submit UK VAT to HMRC.