Thread: Pricewatch!
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January 8th, 2008, 20:45
Originally Posted by Gorath View Post
I wasnīt talking about the exchange rate. You misunderstood me. Or you have no clue what VAT (aka. sales tax) is.
The shop calculates a net price which includes his margin. Then the sales tax comes on top of it. The result is the final price which is displayed to end customers, for example 54.95 € for Hellgate London.
VAT in Finnland is 22%. Itīs added on all goods and services which are used in Finnland or are imported into Finnland, apart from a couple of exceptions with lower rates.
The US prices usually do not include this sales tax. Itīs added when you check out, if it has to be paid. So if you want to compare the prices you have to either add VAT to the US prices or deduct it from the Euro prices.
I know very well what VAT is and the fact that US prices doesnt include it (noticed it myself once when I ordered som stuff from there). The point is that it would have to be as high as 45% to explain the difference and thats way above the norm that is 20% - so it simply doesnt fly as an explanation.

I just hate when people explain higher euro prices with "taxes" even though it certainly does not explain it. Its not just games but all kinds of consumer stuff. My guess is that rest of the world hates europe (world wars, colonialism?) and they always add extra to the cost when they import stuff here. In example the console / computer part / HDTV prices are just an insult when compared to countries like japan or USA.

Last time I calculated prices for ps3 the us version costs same if you reduce features (i.e remove ps2 compatability), use 1 = 1 currency conversion, add max taxes and 200€ "extra cost" to the top. Its madness.

(went a bit offtopic)
Last edited by zakhal; January 8th, 2008 at 20:51.
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