https://www.gov.uk/government/publications/vat-supplying-digital-services-to-private-consumers
So, here's a thing that I learned of only today, 3 days before it comes into effect in the UK, just wondering how you chaps think this'll affect digital distribution, seeing as that's extremely relevant here.
Essentially, as opposed to charging VAT on overseas digital sales based on the seller's country of operation (e.g. Valve operating out of Luxembourg and paying 15%); in EU member states, the VAT will be charged at the rate based on the buyer's country of residence - some countries having a VAT rate of 25% or higher.
I'm not personally going to touch on some of the issues, such as speculating on what Paypal are going to do to accommodate this; but I would be curious to hear thoughts.
Do you think we'll see price hikes across the board? Or will distributors like Steam, GOG and Humble just take a little out of their profits to maintain the same prices? GOG already uses their 'fair price package' to iron out the regional pricing in some titles, I would hope that this'll be dealt with in the same way.
I'm sure I don't quite understand how this will work in regards to regional pricing.
So, here's a thing that I learned of only today, 3 days before it comes into effect in the UK, just wondering how you chaps think this'll affect digital distribution, seeing as that's extremely relevant here.
Essentially, as opposed to charging VAT on overseas digital sales based on the seller's country of operation (e.g. Valve operating out of Luxembourg and paying 15%); in EU member states, the VAT will be charged at the rate based on the buyer's country of residence - some countries having a VAT rate of 25% or higher.
I'm not personally going to touch on some of the issues, such as speculating on what Paypal are going to do to accommodate this; but I would be curious to hear thoughts.
Do you think we'll see price hikes across the board? Or will distributors like Steam, GOG and Humble just take a little out of their profits to maintain the same prices? GOG already uses their 'fair price package' to iron out the regional pricing in some titles, I would hope that this'll be dealt with in the same way.
I'm sure I don't quite understand how this will work in regards to regional pricing.