Increase in Price
Now that steam has switched to "local currency" Defense Grid actually got more expensive in Euro-countries. Defense Grid is 19.99 US Dollars in the US, but 19.99 Euros in europe.Ofcourse the steam community is furious with Steam's 1:1 conversion of dollar:euro.
But I'm curious about something. Does this mean that Hidden Path gets paid more per sold game in the EU or does Valve keep the extra profits? (I think the lather myself, but just checking). I found out about this when I wanted to give Defense Grid as a gift to a friend of mine, which now ofcourse isn't going to happen anymore!
Second, do the developers have any say in this? as in, could Hidden Path nudge Valve a bit and perhaps show there dissaproval in this? (assuming you don't get paid extra while your EU costumers do have to pay extra)
Comments
I refuse to buy from Steam
Wrong.
It's not a 1:1 conversion. Steam doesn't charge VAT separately in Europe. If a game is 19.99€, it's 19.99€. VAT is included in that price.
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"The Cookie of James Cookiejar."
- Mromson
To VAT or not
Hi Folks,
We're definitely a game developer and not well versed in sales tax, VAT, online collection, etc. so we rely on Steam/Valve to make sure they are following the correct laws in each State and Country where they sell the game.
If you think that Steam is doing something incorrect when it comes to pricing or tax collection, please give us examples and we can pass them along to them or you can contact them directly. Our goal is to price the game so that the same amount of net revenue returns to the distributor and developer each time it is sold. There is no plan or intent to gain more from one group than another.
Thanks much!
Jeff
The cookie of VAT (Value added tax)
I think that what some people don't understand, is that (most) European Countries tax digital purchases with VAT (Value Added Tax) at anywhere between 5-25%. So lets say you have a game at $19.99 USD. First you convert that into EURO; 14.96€ EUR. Then you apply VAT to that number. For Countries who are members of EU, the VAT is at around 20%, so the price ends up at around 17.95€ EUR - with 2.00 EUR left out for various reasons such as change in the currency value. etc.
Then you have Countries such as Norway that don't tax digital material. Here I would simply suggest that Steam removes EUR altogether from Norwegian STEAM and sticks with USD, or at least give us the option to choose which currency we wish to pay in. My gripe with STEAM and their unnecessary VAT charges on purchases in Norway, is simply because games end up being more expensive than the retail counterparts.
But then again, this generally doesn't apply to Defense Grid: The Awakening, since there is no retail version to compare it's price to, only a US STEAM Store. It would be nice if the Norwegian STEAM store didn't automatically put VAT on games when Norway doesn't require it. But that would still put the price at around 16.99€ EUR, so it ain't as big of a deal.
And now if you'll excuse me, I'm going to bed. ;-)
_____________________________
"The Cookie of James Cookiejar."
- Mromson
VAT should be included
I talked with the folks at Steam - VAT is supposed to be included in the price, that is why it is similar from Euro to dollar in number - the Euro price includes the VAT. If you are getting charged VAT in addition to the Euro price, can you please send us a screenshot of that happening to info <at> hiddenpath .com.
Thanks,
Jeff
What about Norway?
What about countries such as my own (Norway), that don't have VAT?
_____________________________
"The Cookie of James Cookiejar."
- Mromson
They have been charging the
VAT is the difference
My understanding is that now that they are collecting in Euros, the price includes VAT which accounts for the difference between Euros and Dollars. Are they charging you VAT in addition?
Jeff
VAT isn't the only
I second that!
I'm gonna wait a while to see if it gets sorted out'. I'm sorry people, I think you created a beautifull game, but I want to send a message to STEAM.
At this point a lot of games are more expensive on STEAM than in the (web)shop.
Your game is not be for sale any other way than via STEAM?Which, at this point, means I will not buy it.
Maybe you can talk to them about this.
Zero T
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Do not meddle in the affairs of dragons, for thou art crunchy and taste good with ketchup