Eligible expenditure: European Economic Area (EEA) 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 which is also EEA expenditure.
EEA expenditure is defined as:
‘…expenditure on goods or services that are provided from within the EEA.’
The key test here is the location where goods or services come from.