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Codemasters and VAT
Beachcomber
Member Posts: 535
Just received this email
Dear ------------
As of January 4th, 2011 and in line with new UK legislation regarding VAT pricing, all purchases made via Codemasters Online billing systems, including the Player Account System and the LOTRO in-game Store will be charged inclusive of 20% VAT.
This tax increase will be applicable to all players on the European servers and will be charged appropriately. For all players on existing recurring subscription plans (before 04/01/2011), there will be no increase, the extra VAT will be absorbed by Codemasters!
If you'd like to enjoy the cheaper VAT rate then log in to your Player Account and take out a recurring subscription today.
If you already have an open VIP subscription on a recurring payment option, then you need take no action to continue paying at your existing, lower rate
The LOTRO Europe Team.
The thing that bothers me is, two years ago pastr november (2008), Value Added Tax (VAT) was reduced by UK government to 15% until january 2010 to help with the recession. It then returned to 17.5%
Correct me if im wrong but i dont remember Codemasters offering anyone a discount for that period.
Comments
And i do not remember getting a raise the last time my government increased taxes, what are you trying to say? You are not entitled to have consumer prices reflect changes in taxes, you will be charged within an inch of what your are ready to pay every single time.
Thats how capitalism works. Might not sound fair, but the other systems did much worse.
That's an interesting one...I wonder how it is that VAT on services like computer games works?
For instance, in retail, if I import goods from the UK to sell here (in Ireland), I am not liable for UK VAT on the invoice. Regardless of the rate. I do however have to put Irish VAT on the goods in order to sell them.
I'd be interested in seeing an explanation of how virtual goods and server access are exempt from this somehow? If Codemasters are based in the UK and you are too (I'd imagine so from your post), you may be SOL on this front, unless you can prove somehow that it's unfair that players from the rest of the EU get a VAT exemption (I'm assuming they do, since I got no email like yours).
Seriously though, VAT on pixels?! That's gotta be a new low.
op, are you sure that's a legit e-mail?
Quite frankly I would be going to their site and making sure that this is true. essentially if any link is in that e-mail don't click on it.
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Serph toze kindly has started a walk-through. https://youtu.be/UIelCK-lldo
It is legit, i got the same in german and verfied it. I think it has nothing to do with the change in VAT amount though, more something to do with a change on how VAT is applied. There was a recent change to the law in the UK, read about it here.
Now i don't see how this affects CMs, but maybe there are finer points(or appendixes) in the law not mentioned in the article and they do somehow affect CM.
Wasn't that more to do with printed matter though? If you have a digital key for a game you got no "printed matter" with it, you get no "printed matter" from a Cash Store purchase or a sub either....I was under the impression that this was to combat things like part-works (DVDs with accompanying magazines etc) being charged at the lower rate because they had a magazine to go with them? They split the VAT on those over here too....
As you say though, there may be some fiddly but buried in a sub-clause that makes it applicable.
Weird.
You didnt read what i wrote.
November 2008 taxes were reduced but players were charged the same. Now when taxes are increased they are going to raise payments.
Something dosent add up.
The email i received implies that its due to the amount of VAT, not how its applied. In UK (i dont know about Germany) we pay VAT on all things except Books,Childrens clothes and food, so VAT was already being charged.
The link you provided is specific on how VAT is charged on printed matter. This has no connection with MMO subscriptions.
UK decides its own VAT rate as its not part of the Eurozone. I presume the Eurozone VAT rate has remained static.
You assume alot, and all of it is wrong. The link was part of a series of articles, i merely wanted to point people in the right direction. For another we do not have a "Eurozone" VAT, every country decides its own VAT as taxes have nothing to do with currency.
The UK does not have the Euro, but it is still part of the EU. All tax regulations that apply between France - Germany, also apply between UK - Germany. Also CM charged a EU wide unified tax, an average if you so will. Meaning that while the 20 or so different VATs in the EU went up and down the price stayed the same. The recent change apparently is due to a change in law that requires CM to charge the UK VAT, which is higher than the average VAT they charged before.
And that means that everyone in europe is now charged the UK tax, and everyone has to pay more now regardless of their local VAT since we get supplied by a UK company having to pay UK tax.
Also again, you pay an endprice. That means a company goes and says "we want an endprice of 15$/€/whatever" and then they construct the pre VAT price in a way that leaves them at the desired result after tax. It is the same for parking tickets, 1$/€/pound shops or whatever else where the product is tailored to the price, not the other way around. Even if they had to pay no tax at all suddenly they would still charge you the same sum, it would just go straight into profit.
And infact you should be damn grateful. When was the last time any MMO company raised their prices due to higher powercosts, wages or just plain inflation? We had the same prices for how many years now? The UKs taxcut during the crisis didn't even cover the normal inflation, not to mention the crisis itself.
If you take issue with products getting more expensive due to taxes then take it up with your government. You voted them in, now your responsible for what they do. Infact everyone but UK people have more of a right being pissed, since we have to pay more for our service due to the people you voted into office. If we can suck it up so can you.
You assume too much if you think i voted for any of those Unionist London trash parties.
No offense intended, i meant that "you" as in "You UK people", not "You personally"
.
I have been under a government i don't personally support for 6 years now, so i can relate. Lots of horrible decisions, but the people in my country voted them in so i guess they deserve what they get
. Though i admit it sucks when people in other countries get affected.
None taken and i agree, Merry Christmas