VGDC50050 | Eligible expenditure: European expenditure

S1217AE, S1217CG Corporation Tax Act 2009

The amount of Video Games Tax Relief (VGTR) to which a Video Games Development Company (VGDC) is entitled in respect of a video game is determined by the amount of core expenditure that is also European expenditure.

European expenditure is defined as:

‘…expenditure on goods or services that are provided from within the United Kingdom or European Economic Area.’

The key test here is the location where goods or services come from.