Posted October 12, 2014
Matruchus: Actually I doubt that is the real reason since gog has to pay 19% VAT to Cyprus at the moment for every purchase made - just check the applicable tax rates at the Cyprus tax office - VAT there has increased every year now and I would not call it a taxes haven anymore.
The other thing is that the EU Commision is pressing down on online shops that are evading taxes like Amazon Germany who only pays 1% VAT in Luxemburg, etc.
While I will agree that it will not have been the entire reason for the decision I will stand by it being a large part. The other thing is that the EU Commision is pressing down on online shops that are evading taxes like Amazon Germany who only pays 1% VAT in Luxemburg, etc.
In the UK Amazon claims to reside in both Ireland for business and trade but in Luxemburg for taxation, so here the tax office has to chase them and make deals, _Deals_ to get _any_ UK tax out of them.
The governments want to claim what is "theres" in taxes from "their" people and the only way that the governments have found to do this is to call international businesses on where they are selling by now telling them that they no longer pay the tax at their end, they will have to pay the tax at the point of sales, and so netting themselves the tax.
GOG I expect read their countries equivalent of that documentation which has been available since at least Feb this year and decided that they needed to implement this or move their HQ to somewhere such as Oregon / New Hampshire, US. They choose to implement it by charging us in our own currency's and then give the applicable tax to the EU for redistribution to the relevant member state. This is why I can see the money back part disappearing as it would be dissolved by the VAT charge for those areas.
I maybe wrong, but I just cannot see many other reasons why GOG would have covered the implementation of regional price with the whole "Good news" unless they were gearing up and this brought both new partnerships (yet to be seen) _and_ their own tax responsibilities to a neat bundle. From their end it would have appeared to be a wonderful decision.
With less then 2 months to go I will be happy if I am wrong, and without a blue to back this up I am unjustified to make out right claims, but only time will see and GOG has been rushing through a few rough decisions lately.