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Hello,

my question is pretty simple: if I buy a game overseas, the VAT tax revenue (dependent on the % set etc) should go to the country's state in which I buy the game from. Is this the case?
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rbz: Hello,

my question is pretty simple: if I buy a game overseas, the VAT tax revenue (dependent on the % set etc) should go to the country's state in which I buy the game from. Is this the case?
I don't have any understanding of international tax, but I don't think that's how it works, seeing as GOG isn't a brick and mortar store. Instead, you'd be charged taxes according to the billing, rather than your actual location.
I thought this was going to be about fallout for some reason...


as for your question sadly my knowledge of international law is weak in most regards. I imagine some of the nice forum members will be able to answer your question though.
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rbz: Hello,

my question is pretty simple: if I buy a game overseas, the VAT tax revenue (dependent on the % set etc) should go to the country's state in which I buy the game from. Is this the case?
It is a tax aimed at domestic sales, so typically you'll only have to worry about it if you are a resident of that country or state. For instance, If something in the UK is sold to someone outside the EU it ends up "zero rated" and the person in, for example, America, won't pay it. Likewise rates will vary in the percentage too within an area, such as EU states or USA states.
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rbz: Hello,

my question is pretty simple: if I buy a game overseas, the VAT tax revenue (dependent on the % set etc) should go to the country's state in which I buy the game from. Is this the case?
Typically VAT is only applied within the county you are in, and only goes to the country you are in (though as a part of the eurozone it's likely a percentage of it will go towards eurozone taxes of course).

For a more defined answer, you'd actually have to contact your revenue service and go through whetever layers of mind numbing beuracracy (i know that isnt at all spelled correctly!) they have.
Hope that helps though!

Edit: and preety much ninja'd by Fezred i think on that
Post edited November 30, 2013 by Sachys
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rbz: Hello,

my question is pretty simple: if I buy a game overseas, the VAT tax revenue (dependent on the % set etc) should go to the country's state in which I buy the game from. Is this the case?
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Sachys: Typically VAT is only applied within the county you are in, and only goes to the country you are in (though as a part of the eurozone it's likely a percentage of it will go towards eurozone taxes of course).


Hope that helps though!

Edit: and preety much ninja'd by Fezred i think on that
Well, it's a bit more complex than that. The VAT applied is the one of the country in which the delivery or service provision takes place. But that fiscal place is determined by fairly complex rules, especially for online sales. Directive 2008/8/CE has put some order into that, but it will only be fully applicable in 2015. The idea behind that directive is that , for electronic services ( purchasing a game online is a service delivery ) rendered by a EU company to an end consumer established in another EU country, the tax applicable is that of the country in which the consumer resides.
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Phc7006:
Right - well thats you doing my tax returns from now on!
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Phc7006:
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Sachys: Right - well thats you doing my tax returns from now on!
I'm in, thanks Phc7006 and +1 ;-)