Games are more expensive in Euro than Dollar

[senrign]

When a game sells for both 60€ and $60 since the Euro is more valuable than Dollar, Euro is actually spending more to get the same item. Why is that for? Shouldn't Euro be slightly cheaper to have the same buying power with Dollar? Or is this happening because of taxing?

[Crazy Tiger]

Euro price is with sales tax, dollar price is without sales tax.

[AmsterdamHeavy]

Your euro prices include taxes.

US prices do NOT, they are added at check out.

[VB Driver]

Originally posted by AmsterdamHeavy:

Your euro prices include taxes.

US prices do NOT, they are added at check out.

Holy F.

Is it everything in USA (not just digital games) that sells this way?

[AmsterdamHeavy]

Originally posted by VB Driver:

Originally posted by AmsterdamHeavy:

Your euro prices include taxes.

US prices do NOT, they are added at check out.

Holy F.

Is it everything in USA (not just digital games) that sells this way?

Yes, pretty much everything sells that way.

[Chika Ogiue]

Originally posted by AmsterdamHeavy:

Your euro prices include taxes.

US prices do NOT, they are added at check out.

I expect the only reason that is still true is because different states have different tax values. Japan should also have the tax applied at checkout, but doesn't. It's included in the base price shown on store pages -- and that's likely because there's only one tax value involved, the only exception being restaurants where the tax amount depends on whether you are eating in or taking out.

But it does mean that stores often display the pre-tax price in very large numerals and the actual price to be paid in tiny ones that you need 20-20 vision to see >___<

[Yujah]

USA sales tax is often and I believe on (over states) average around 8% versus significantly more for VAT in the EU:

https://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#/media/File:State_Sales_Taxes.svg
https://taxfoundation.org/data/all/eu/value-added-tax-2024-vat-rates-europe/

This ends up meaning that without taxes, American prices are in fact generally slightly higher...

[blunus]

Originally posted by senrign:

When a game sells for both 60€ and $60 since the Euro is more valuable than Dollar, Euro is actually spending more to get the same item. Why is that for? Shouldn't Euro be slightly cheaper to have the same buying power with Dollar? Or is this happening because of taxing?

Exclude tax and you'll see. Comparing matched price, US prices are actually more expensive than euro due to not including tax in the price tag, 45 out of 50 states.

[Sammy M.F Bananas]

Originally posted by VB Driver:

Originally posted by AmsterdamHeavy:

Your euro prices include taxes.

US prices do NOT, they are added at check out.

Holy F.

Is it everything in USA (not just digital games) that sells this way?

Yeah, we have different taxes all the way down to the municipality level.

My friend 5 minutes down the road in the next county has 1% less sales tax than me.

Its ridiculous. Some areas around me pay 13% sales tax.

[Anonymous Helper]

Originally posted by Sammy M.F Bananas:

Originally posted by VB Driver:

Holy F.

Is it everything in USA (not just digital games) that sells this way?

Yeah, we have different taxes all the way down to the municipality level.

My friend 5 minutes down the road in the next county has 1% less sales tax than me.

Its ridiculous. Some areas around me pay 13% sales tax.

Be happy you don't live where I live. Standard VAT is currently 25.5%.

Weird thing about digital goods is that I pay the same as someone from Luxembourg who have 17% standard VAT.

[Blaagh]

apples and oranges.. just ignore general income like thats not a thing. you cant just compare prices in different countries

[lx]

its a scam

[Wolfpig]

Originally posted by Anonymous Helper:

Weird thing about digital goods is that I pay the same as someone from Luxembourg who have 17% standard VAT.

Taxing has nothing to do with digital goods.
Stuff you buy in stores are taxed too, and if what you buy costs the same in some other place you still will pay a different tax.

[Tito Shivan]

Originally posted by VB Driver:

Is it everything in USA (not just digital games) that sells this way?

Buying things as an european in the US is a pretty weird experience.

Originally posted by Blaagh:

apples and oranges.. just ignore general income like thats not a thing. you cant just compare prices in different countries

People in some LATAM regions are getting shafted because they now have to pay US pricing for games, which means some games now cost A LOT there.

[Kargor]

Originally posted by Anonymous Helper:

Weird thing about digital goods is that I pay the same as someone from Luxembourg who have 17% standard VAT.

It's up to the publisher: they want the same price everywhere, so differences in VAT just change the amount they actually get.

[Anonymous Helper]

Originally posted by Wolfpig:

Originally posted by Anonymous Helper:

Weird thing about digital goods is that I pay the same as someone from Luxembourg who have 17% standard VAT.

Taxing has nothing to do with digital goods.
Stuff you buy in stores are taxed too, and if what you buy costs the same in some other place you still will pay a different tax.

I'm talking about Steam games having same price across (most of) EU despite all states having different VAT rates.

Price for Finland (me):
Subtotal (excl. VAT): 2,06€
VAT at 25.5%: 0,53€
Total: 2,59€

Price in Luxembourg:
Subtotal (excl. VAT): 2,21 €
VAT at 17%: 0,38€
Total: 2,59€