Tax and currencies

BodmanBodman Member Posts: 6
I was about to buy your new sigil, but then I noticed you want to bill me in Euros and you add 25% tax. I am from Iceland and there you have 25% tax, but I am not in that country now. I am in a country with only 7% tax now, so that is a 18% tax you are overcharging me. Also Iceland does not use Euros as a currency, so why do I have to pay in Euros? Also I am now in a country with a totally different currency. When I take this all together it looks like you are overcharging me for the Sigil about ca 25%, which means I will not buy it, ever, except you rectify this.

Comments

  • SummonerNRSummonerNR Member, Guardian Posts: 13,491 Guardian
    Online digital goods are different from physically walking into a local store and being charged the tax where that physical store is located in.

    Online purchases would probably be based on where your “Registered” account is at.
    So, where your account is registered.

    As for Iceland vs Euro, is your account actually registered as being in Iceland ?
    Or is it registered as somewhere in Euro, but you since have moved to (or are normally living in) Iceland instead ?
  • DNA3000DNA3000 Member, Guardian Posts: 20,312 Guardian
    Bodman said:

    I was about to buy your new sigil, but then I noticed you want to bill me in Euros and you add 25% tax. I am from Iceland and there you have 25% tax, but I am not in that country now. I am in a country with only 7% tax now, so that is a 18% tax you are overcharging me. Also Iceland does not use Euros as a currency, so why do I have to pay in Euros? Also I am now in a country with a totally different currency. When I take this all together it looks like you are overcharging me for the Sigil about ca 25%, which means I will not buy it, ever, except you rectify this.

    Something to keep in mind. In a sense, Kabam doesn't sell you anything. They sell through intermediaries. When you buy through in-app purchase, you are making that purchase through Apple or Google. Apple or Google are the ones charging you, and Kabam actually has no control over what those stores charge you. They aren't even given any information on who you are, where you are, and how you are buying. They just get a transaction code that says someone bought this, give it to them and then later those stores forward them the money.

    The way app stores work, both Apple and Google, is the app developer creates the item and gives it an item code. That code represents what the item costs in a giant table the app stores maintain. Most developers normalize their prices around US pricing, but they can choose to set the price for their items in any currency. However, once they do, that's it. If you make an item a tier 50 item, and that costs, say, $49.99 USD in the US, it is Apple that decides what tier 50 items cost everywhere else in the world. Kabam cannot tell Apple "make this cost this much in Iceland." Remember, Kabam isn't selling anything. Apple is. Apple is selling tier 50 items on the behalf of Kabam, and Apple decides what tier 50 items cost everywhere else in the world. Same with Google.

    The webstore does things a little differently, but the principle is still the same. The webstore is operated by xSolla, and they function identically to Apple and Google for webstore purchases. You are really buying from them, they decide what to charge you, they decide if you pay taxes or not, and they decide what those taxes will be. If you believe you are being mischarged in terms of currency, taxes, or other pricing issues, you need to engage with them to see why this is happening. As SummonerNR says above, the app stores might think you are in a different country than where you actually are, and you need to fix that with them. They may think you owe taxes you think you don't, and again you need to engage with them to address that. Kabam has no way to directly address any of these kinds of issues.
  • Maverick75Maverick75 Member Posts: 789 ★★★
    For sure, Bodman’s message lacks of details: the channel webstore/App Store/Play Store, the set of his game account and his mobile account if it is a mobile store.
    Details needed to maybe fix the soucy.

    Nevertheless regarding the answers here:
    - A single user has no weight, generally speaking.
    - Kabam has more weight with the/its webstore than with the 2 app stores (where it is more a vendor among the others).
  • BodmanBodman Member Posts: 6
    This was the case with both the webstore and with Google store. Last year Xsolla went with the country you are in when you buy. So I paid in the currency and the tax of the country that I am in, which is in accordance with laws. The high taxes of my country should not follow me, where ever I go in the world.
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