Guild Wars 2

Every time I purchase gems the “Total” and “Sub-total” values in the checkout window are always the same, despite the VAT tax value being present. For example, in 10 dollar/10 euro purchases, the “Sub-total” will be 10, and with an added tax value of 1.87 (or whatever it is), and yet, the “Total” value ends up still being 10. I’ve also checked my bank account statements and I’ve confirmed that I always end up paying 10 and nothing more than that. So what’s the tax value for?

In EU the Value Added Tax is always included in the consumer price. What that calculation actually means is that we pay 10 and 1.87 of that is tax leaving Anet 8.13. The tax is not added to the final price, but to a base price. It is confusing because its name is ‘added tax’.

Garambola.2461:

In EU the Value Added Tax is always included in the consumer price. What that calculation actually means is that we pay 10 and 1.87 of that is tax leaving Anet 8.13. The tax is not added to the final price, but to a base price. It is confusing because its name is ‘added tax’.

Oh, so the 1.87 value is what Anet pays as tax, and therefore they subtract it from the 10 they’re supposed to receive, and thus only ending up with 8.13? In other words, if 800 gems are 10 euros, and the VAT is 1.87, we’re still only going to pay 10 euros?

That’s interesting. Though what about bigger purchases where the VAT is higher? With the 100 euro purchase (the 8000 gems) the VAT is around 18 euros. Does it still work the same way as the 10 euro purchases? Meaning we’ll only pay 100 euros?

i hope so, cause i bought HoT and I hope I don’t have to pay taxes over the base price :s

Avectius.3271:

Garambola.2461:

In EU the Value Added Tax is always included in the consumer price. What that calculation actually means is that we pay 10 and 1.87 of that is tax leaving Anet 8.13. The tax is not added to the final price, but to a base price. It is confusing because its name is ‘added tax’.

Oh, so the 1.87 value is what Anet pays as tax, and therefore they subtract it from the 10 they’re supposed to receive, and thus only ending up with 8.13? In other words, if 800 gems are 10 euros, and the VAT is 1.87, we’re still only going to pay 10 euros?

That’s interesting. Though what about bigger purchases where the VAT is higher? With the 100 euro purchase (the 8000 gems) the VAT is around 18 euros. Does it still work the same way as the 10 euro purchases? Meaning we’ll only pay 100 euros?

No matter the size of purchase, the VAT is always included in the final listing price in europe. That’s actually a requrement as to not mislead customers. The price tag you see is what you pay. Though the rates differ according to country, thus anets profit on gems differs slightly too depending on which rate applies.

The 1.87 VAT fee is calculated with 23% (23% of 8.13) which is somewhere inbetween most countries VAT % (http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/how_vat_works/rates/vat_rates_en.pdf).