VAT

[Nayot]

I'm curious. Where is VAT included?
1) Game purchases
2) Gift purchases
3) In-game purchases
4) Market transactions

I've been never asked for a higher price. There has never been a VAT fee, but I suppose it's included, but where?

[Magillanica Lou Mayvin]

You get all the details including the VAT on your purchase's virtual receipt everytime you buy something. It should say something like:

Services
Price
VAT
Total

Unless it's stated that VAT is included in which case if you need to find out your VAT just divide the sum you paid to 100 and then multiply that by what ever percent of VAT gets added in the country you live in. For example 20%.

EX. 100 / 100 = 1 * 20 = 20 would be the VAT already included in the total sum of 100

[Nayot]

Originally posted by Day Twentynine:

You get all the details including the VAT on your purchase's virtual receipt everytime you buy something. It should say something like:

Services
Price
VAT
Total

Unless it's stated that VAT is included in which case if you need to find out your VAT just divide the sum you paid to 100 and then multiply that by what ever percent of VAT gets added in the country you live in. For example 20%.

EX. 100 / 100 = 1 * 20 = 20 would be the VAT already included in the total sum of 100

Hmm, I believe if the VAT is 20% than the price you are paying is 120%, therefore you need to divide it by 120 and than multiply it by 20.

5€ -> 5/120*20 = 0,833€


The thing is that always when I purchase in-game, there isn't wrote anything, so VAT free?
And from the store, there is written: "VAT: All prices include VAT where applicable"
So, gifts and game purchases include VAT?

[Magillanica Lou Mayvin]

Hmm, no if VAT is included already then VAT is 20 out of 100 with the value of the goods being 80. Only if VAT is not included in the price then it comes down to +20%. It depends on each website or platform End User License Agreement and purchase details. In this case Steam EULA says this about VAT:

"If your use of Steam is subject to any type of use or sales tax, then Valve may also charge you for those taxes, in addition to the Subscription or other fees published in the Rules of Use. The European Union VAT (“VAT”) tax amounts collected by Valve reflect VAT due on the value of any Content and Services or Subscription."

It all comes down to where you live and what your country's laws for VAT are. And it should and would be displayed to you pre-purchase. So you'd know about it even before you make your payment.

[Harichi]

I think in the UK, the VAT for games is included in the price of the game because I've never been charged extra either.

[Purple Tentacle]

as with literally any other product in the UK VAT is included in the price, as we dont have the stupid american system of them listing a price in a shop going upto the counter with the exact amount of money and then them asking for more

[Harichi]

Originally posted by Purple Tentacle:

as with literally any other product in the UK VAT is included in the price, as we dont have the stupid american system of them listing a price in a shop going upto the counter with the exact amount of money and then them asking for more

Oh, good.

[cinedine]

Unless you're US every store shows end-customer prices.
VAT is completely taken care of by the retailer and unless you run a business you don't need to concern yourself with it.

[Morbo 👽]

Originally posted by Day Twentynine:

Hmm, no if VAT is included already then VAT is 20 out of 100 with the value of the goods being 80.

Wrong. If VAT is already included in the final price at a rate of 20%, you can't simply take 20% of the final price to find the VAT amount. So Noyat has his sums right.
http://www.thevatcalculator.com/how-to-calculate-vat/

As to Noyat's question, I'm reasonably certain 1, 2, and 3 incur VAT; not so sure about 4.
But according to this Support page the answer seems to be: maybe, perhaps. Either way, it is the responsibility of Valve and the person selling the item to collect and pass the appropriate amount of VAT on.

[AEONdontsucknod**k]

im no expert but wouldnt the vat vary from country to country? if not then i got me some vat to claim off the tax devils

[wuddih]

If you live in US, the only place with VAT is Washingtion afaik. In other places the VAT is already included in the price or non-existant.
1, 2 and 3 are digital purchases from provider to customers. There can be VAT added or included.
4 is customer to customer, there are no taxes, just a fee for providing this service. But since that can generate you revenue, tax information is required from you if you exceed 200 sold items in a year. Then it can happen that your government wants some money from you.