VAT is coming to Stream, EMPTY YOUR WALLET!!!

MalicE

MalicE

Party time! Excellent!
VAT is coming to Steam, EMPTY YOUR WALLET!!!

So we all know what's going on so I'm not gonna rehash the whole drama again.

so the point of this thread is I, as I'm sure other people do as well, have some funds sitting in my wallet that I've been saving for the XMas sale. But now my hand is being forced and need to spend it before Tuesday (10 Nov) in order to yield maximum return.

I got $10.... suggestions?

so far Savage Lands is looking appealing
 
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Solitude said:
Won't Steam absorb the VAT?
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Almost certainly. I think the only real difference could be what exchange rate they use to determine final pricing. Looking at India, which is a similar market and also recently got local pricing, a lot of indie games became cheaper, while some of the new "blockbuster" type games were a bit more expensive. But they will likely use the local pricing set by publishers to determine price points to keep it in line with local physical copies.
 
Solitude said:
Won't Steam absorb the VAT?
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Denouncer said:
Almost certainly. I think the only real difference could be what exchange rate they use to determine final pricing. Looking at India, which is a similar market and also recently got local pricing, a lot of indie games became cheaper, while some of the new "blockbuster" type games were a bit more expensive. But they will likely use the local pricing set by publishers to determine price points to keep it in line with local physical copies.
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Flex said:
Doubt it if the iStore does not do it. Even they do do "absorb" it, the pricing of games will have to go up to cover the costs. Would be nice, but highly doubt it
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....well I'm not gonna wait to find out :(


Keepa34 said:
So what is VAT streaming? :p
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don't know what you are referring to... "whistling:
 
Flex said:
Doubt it if the iStore does not do it. Even they do do "absorb" it, the pricing of games will have to go up to cover the costs. Would be nice, but highly doubt it
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I don't believe this will be the case. I reckon we will be roped in with regions like Russia and Brazil, where games cost less than what we are currently paying. But we will just have to wait and see in 4 days time. You also need to keep in mind, we currently pay US taxes on our games. That would be removed and VAT added.
 
Grievous said:
I don't believe this will be the case. I reckon we will be roped in with regions like Russia and Brazil, where games cost less than what we are currently paying. But we will just have to wait and see in 4 days time. You also need to keep in mind, we currently pay US taxes on our games. That would be removed and VAT added.
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Mmmm Never thought of that yes!! Good points you made there!
Did some quick research. It all depends on where you live in the States. Some states charge tax, others don't. Apparently in the UK Tax on Digital goods can go up to 20%. So I am not sure how our pricing currently works though with the $ pricing.
Apparently it will show at checkout what the VAT% is on the game. Haven't been that attentive before, but don't think I have seen VAT added. But if someone does buy a game in the next 4 Days, just let us know for the hell of it :)
 
Grievous said:
I don't believe this will be the case. I reckon we will be roped in with regions like Russia and Brazil, where games cost less than what we are currently paying. But we will just have to wait and see in 4 days time. You also need to keep in mind, we currently pay US taxes on our games. That would be removed and VAT added.
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but steam says I pay no tax now

MediaHandler.jpg
 
MalicE said:
but steam says I pay no tax now

View attachment 18091
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Ok yeah, but goes back to Valve absorbs the tax. In the states they still would pay $19.99, doesn't matter if they pay tax or not (Since it different for each State).

So all that would change for us in your screen shots, is it would still be $19.99 in total(I'm not going to convert to Rands), with VAT being $2.25, Price of the game before vat, $17.54
 
Grievous said:
Ok yeah, but goes back to Valve absorbs the tax. In the states they still would pay $19.99, doesn't matter if they pay tax or not (Since it different for each State).

So all that would change for us in your screen shots, is it would still be $19.99 in total(I'm not going to convert to Rands), with VAT being $2.25, Price of the game before vat, $17.54
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[MENTION=1872]Grievous[/MENTION], incorrect :) Go read that Article that I posted. Explains everything very nicely. Some states in the gets charged tax on Digital products and other states don't.

The fact that Steam shows you the Tax Payed or not Payed based on Location shows they don't absorb it at all.
 
Flex said:
[MENTION=1872]Grievous[/MENTION], incorrect :) Go read that Article that I posted. Explains everything very nicely. Some states in the gets charged tax on Digital products and other states don't.

The fact that Steam shows you the Tax Payed or not Payed based on Location shows they don't absorb it at all.
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I don't think the fact they show how much TAX you pay is clear indicator they don't absorb the price (Like my example explains is a possibility how they could do it). But really everything is speculation until the 10th.
 
Grievous said:
I don't think the fact they show how much TAX you pay is clear indicator they don't absorb the price (Like my example explains is a possibility how they could do it). But really everything is speculation until the 10th.
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Yeah we will have to wait. But Go read that article when you get time! Explains Steams Whole economy and how it works
 
Just a small FYI, technically all games on steam have VAT, however steam is not obligated yet to pay for it with it being a digital import. Technically you need to inform SARS of your purchase, calculate 14% and pay it across to SARS. So rather wait and see what happens before you dig your tax evasion hole deeper.

VAT 215 Form
 
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Grievous said:
I don't think the fact they show how much TAX you pay is clear indicator they don't absorb the price (Like my example explains is a possibility how they could do it). But really everything is speculation until the 10th.
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Saw this on steam just now. There might be some truth in your theory!

"Are taxes collected for Steam purchases?

If you made an online order for a Valve product and you are an international customer there may be taxes or VAT charges included in your purchase.

To the extent VAT applies to a transaction, Valve absorbs that cost and pays VAT itself.

Valve Corporation reports VAT declarations on a quarterly basis to HM Revenue & Customs in the UK, who then distributes to the various EU member countries."
 
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