VAT on SC Stuff

[albert]

Well if they are contributing to European tax then their company must have subsidiaries in Europe. UK in this case and that means they can sell in local currencies and tax in these countries and there is no real justification for prices fluctuating due to the exchange rate. This is only a few pence but if ships fluctuate like subs then us Euro buyers are in for a big shock!

[smilodon]

Cloud Imperium is a US company shipping a digital product to the EU. They don't have a shop or a subsidiary in the UK, although they do have a studio in Manchester that is developing the single player part of Star Citizen. So they price their digital goods in US dollars, convert to Euro's and then due to the new EU Law have to add the sales tax (VAT) which is levied in the EU country where the purchaser lives.

https://www.gov.uk/importing-goods-from-outside-the-eu


Oddly in the US as law is going through saying that no digital sales should attract US State sales tax which is completely opposite to the EU stand.