Discussion in 'Article Discussion' started by Gareth Halfacree, 20 Jan 2015.
Advises pre-February investment.
They'd be better off, from a "not-pissing-off-their-backers" point of view to absorb the VAT (in the already high prices) themselves and not increase their prices further. They'd get some severe kudos if they did that....
They probably are reaching a new USA tax threshold and for the company , will find it cheaper to have a UK branch
Prices are pretty cheap I think - you can get the game and a basic ship for $20 more often than not. That said, since these are easy to replicate virtual ships, you do have a point about absorbing the cost.
Why open a VAT-charging subsid anyway? Isn't this the point of digital sales?
If you live in a VAT country its kinda the law to charge VAT on products that it is applied on. Video games are part of this they are basically doing what the Law tells them they must do or they would simply be banned from launching the product.
They should be absorbing the cost in truth but thats another matter.
The law changed on the 1st January 2015 across the EU mandating that VAT must be charged on the point of sale location (ie: consumer location for digital sales).
For the basic packages it's not too bad - a basic ship with all alpha/beta access is going to increase from $45 to $54. It gets painful on the expensive ships (which I agree, CIG charge waaaay too much for) with the likes of the 890Jump going from $600 to $720.
As for absorbing VAT costs, that just cuts 20% of CIG's funding for the game from future EU purchases. Not sure that's the best idea?
Wait, wait, wait... There are virtual ships in a game which cost $600 in actual, real-world money to buy? That's it, I'm going back to my Commodore 64.
ELITE on the C64. 'nuff said.
What, you mean you don't want to spend $600 on a space bus? Are you mad?
There's on that cost $2500. Yes, you read that right. Sold out in seconds. There's a reason CIG are sitting on $69m+ after all.
I contacted CIG customer service in regards to the VAT change and it's due to the law saying consumers in the EU have to be charged at their point of origin. It isn't related to the opening of the UK publishing company.
The VAT rules on digital content is what I thought was behind it. Though given the rules came into force Jan 1st it's a bit odd they've taken a month to comply with the new rules.
The UK office might make the VAT filing easier though, it's likely easier to comply with the new rules with an office based in an EU member country...
I'll never understand people.
Then CIG is lying, either to you or in its announcement. I quote:
So, either CIG PR lied in the announcement, which clearly claims the VAT collection is a result of the 'organisational change' (i.e. the opening of a UK publishing division,) or CIG CR lied when it told you that it isn't related to the opening of the UK publishing company. Either way, I'm not sure this is a company I'd want to trust to look after my $2,500 virtual spaceship.
they mentioned the change:
Yes, they did - but they also clearly state they're having to collect (although they misleadingly state 'charge' - they could, as others have suggested in this thread, absorb partially or wholly the VAT to keep the amount charged to customers level across all regions) because they're basing themselves in the UK. Bad phraseology or a deliberate attempt to mislead their customers? Not for me to decide, that - my desktop couldn't run Star Citizen even if it tried.
more like management BS speak -` we will be having a zero investment in payroll this year` is management BS for no payrise.... same sort of thing
It's bad phraseology. I queried exactly that with their support desk (Chelsea to be exact) and said that the VAT article was confusing in that regard. They're going to change it to be clear. So to reiterate, the VAT charge is because of the change in the law, not opening the UK publishing arm. The UK publishing arm probably does make it easier to comply however.
ooooh, i see a rental business model here....
can i buy say a £400 ship and rent my account out at £20/day so folks can have a hands on before buying such a ship.
thus i could have a bunch of accounts - one for each ship.
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