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http://www.eubusiness.com/topics/finance/vat-2015

A major change in the EU VAT system comes into force in six months' time, which will ease life for many businesses and ensure fairer revenue distribution between EU Member States. From 1 January 2015, VAT on all telecommunications, broadcasting and electronic services will be due where the customer is based, rather than where the supplier is located.

Will this affect GOG ?

We have to pay 27% VAT in here ( Hungary )
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ne_zavarj: http://www.eubusiness.com/topics/finance/vat-2015

A major change in the EU VAT system comes into force in six months' time, which will ease life for many businesses and ensure fairer revenue distribution between EU Member States. From 1 January 2015, VAT on all telecommunications, broadcasting and electronic services will be due where the customer is based, rather than where the supplier is located.

Will this affect GOG ?

We have to pay 27% VAT in here ( Hungary )
Indeed. It's probaly one of the underlying reason to the turmoil we see now.

Note that, as customary for anything related to EU, the sentence should be read according to Orwellian principles of newspeak. "ease life for many business" means "make things more complicated for everyone and cost the consumer a fair amount"
This is best for those that already have low VAT in their own countries. It seems to be a way to force customers to buy their products in their own countries with the exception of those that has low VAT, these countries will now have more choices where to buy their stuff.

I like to buy things from Germany and England, items that are not available in my country which also has lower VAT. It will be less than likely I will be doing this now, sad news.
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ne_zavarj: We have to pay 27% VAT in here ( Hungary )
*Sigh*... And I tought that our 21% Belgian VAT was already too much... Thanks for the info, I'm bookmarking your link.
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ne_zavarj: We have to pay 27% VAT in here ( Hungary )
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catpower1980: *Sigh*... And I tought that our 21% Belgian VAT was already too much... Thanks for the info, I'm bookmarking your link.
http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/
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catpower1980: *Sigh*... And I tought that our 21% Belgian VAT was already too much... Thanks for the info, I'm bookmarking your link.
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ne_zavarj: http://www.vatlive.com/vat-rates/european-vat-rates/eu-vat-rates/
Yeah, so as GOG is legally based in Cyprus (19% rate), that will make quite a difference for some countries :(
Frictional games mentioned VAT as reason to pull its games from GOG. Nordic Games didn't mention it.

Personally, I think we won't see prices per country, but either higher Euro prices and no option to switch to different currencies when paying (client location can only identified by payment provider?) or GOG switching its base (or maybe partially for people paying in dollars).
Will this mean 19% lower prices for us living outside the EU? *big shiny eyes*

Note that, as customary for anything related to EU, the sentence should be read according to Orwellian principles of newspeak. "ease life for many business" means "make things more complicated for everyone and cost the consumer a fair amount"
"Ease life for many businesses" is not Orwellian, it has a qualifier. This will not ease life for *all* businesses. Not even *most*. Not even a *majority*. Just *many* businesses.

If anything this is a very honest and non-patronizing statement. It's just one step away from saying: well, not a lot of businesses will find this useful.

Anyway, I don't know what tax I have been paying so far on my GOG purchases, my receipts from GOG just say "price includes VAT where applicable" and nothing else.

I know I should be paying VAT, but it is all very unclear even now. Or should I say doubleplus unclear? :)
Post edited September 02, 2014 by Atlantico
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mangamuscle: Will this mean 19% lower prices for us living outside the EU? *big shiny eyes*
No .
24% VAT here...So yeah, great news....:(
Post edited September 02, 2014 by wolfsrain
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catpower1980: Yeah, so as GOG is legally based in Cyprus (19% rate), that will make quite a difference for some countries :(
That used to be better for them, before 2012 it was 15% in Cyprus, no wonder they picked that place.
Post edited September 02, 2014 by Pheace
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mangamuscle: Will this mean 19% lower prices for us living outside the EU? *big shiny eyes*
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ne_zavarj: No .
Why?
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mangamuscle: Will this mean 19% lower prices for us living outside the EU? *big shiny eyes*
Non EU customers are currently out of scope of EU Vat and remain out of scope after 1 Jan 2015, so there should be no change for you ( except for the regionally priced games ).
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mangamuscle: Why?
Read the article .