Kasz216 said:
NJ5 said:
Kasz216 said:
NJ5 said:
I meant before any VAT is applied (that's what USA prices are, right?).
70 € = $100
$100 / 1.2 (to eliminate 20% VAT) = $83
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Yeah our prices are before sales tax.
I think partially to discourage people from "cheating" and going to somewhere cheaper to buy stuff.
I'd think other taxes probably also inflate the prices in europe however. I mean unless i'm mistaken buisnesses in general pay higher taxes in Europe then the US. Likely that buck gets passed to the consumer.
Or i suppose the buck gets passed from the consumer to the company so to speak.
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Yeah that's probably the case too, unfortunately that's too hard to calculate, no easy-to-get data.
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Actually the data i've seen seems to indicate that the US effective tax rate is 30% with the UK's being 28% for companies.
So... i'm stumped really.
By seen i mean looked up in the last minute.
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It might be that European retailers have a higher profit margin on games though. That seems to be mentioned a lot when these discussions pop up.
It's hard to say how much of the higher price in Europe goes to retailers, and how much goes to the game publishers.
