Nintendo Switch 2 Direct

[RolStoppable]

Cerebralbore101 said:

Lucas-Rio said:

It depend of the country.

In France, videogames have a 20% VAT rate.  90€ would mean 72€ without VAT, equivalent to 78.15$ with current extchange rate.

That's roughly the same as the 79.99 euros price. AKA prices are the same without VAT tax. So at least in france digital is not more than physical. Or at least that's the way people in the USA would view it. We see tax as an alternate to the actual price because tax isn't baked into the pricetags here. If something costs $1 I have to add 7% sales tax and then it costs $1.07.

European prices with VAT included constitute 120% when the VAT is 20%, not 100% like suggested above. So if you want to calculate the price without VAT, you don't go with X*0.8, but X/1.2. Or put into other words, 20% VAT means that the VAT is one sixth of the full price, not one fifth. So deducting VAT from a €90 game results in €75. An alternate method to dividing by 1.2 is dividing by 6 followed by multiplying by 5. In this example it's 90/6=15, 15*5=75.

It doesn't make a significant difference in this example, but it's the correct way to go about it.