When you purchase in US, the game listed 19.99 is actually charged by Apple/Google as higher to include tax. In other countries, is any taxed amount maybe pre-adjusted into the stated price in game (instead of being added afterwards like in US) ??
When you purchase in US, the game listed 19.99 is actually charged by Apple/Google as higher to include tax. In other countries, is any taxed amount maybe pre-adjusted into the stated price in game (instead of being added afterwards like in US) ??
In all other countries prices are always included tax, only the USA (and Canada?) has this weird tax added after thing.
Kabam sets prices in us dollars it's up to your app store to set the local transfer rate and apply any surcharges or taxes to it..
Technically, Kabam (like all app vendors) sets the price for a transaction by declaring the transaction to be a certain tier. A tier 5 microtransaction might be $9.95, for example, in US currency. The Apple App Store then converts a tier 5 transaction into local currency for all other regions. This conversion is 100% under the control of Apple, app vendors have no control over it.
Apple in turn publishes conversions based on its own currency conversion rate and also factors in any cost of business Apple decides to stick in there to operate in that currency. It also adds locally mandated taxes and other charges. But the currency conversion itself is purely an App store thing Kabam has no control over.
Kabam can't even just make up the price for something. They can sell something for $29.95, but not $31.85. They must pick a price from Apple's transaction sheet.
Sales tax in the Netherlands as I am suspecting this player is from is 21% taking that 17.65 and adding that tax is 21.36.
This is a common mistake in comparing prices across the globe. The way thing are priced are different around the world. Another reason there is a difference is the risk of changing conversion rates between different currency’s. Those are also being incorporated in the prices by the different app-stores or even online or brick and mortar shops ...
It often does look wrong when one does a one tot one comparisons with current conversion rates when they don’t take those different factors into account
Kabam sets prices in us dollars it's up to your app store to set the local transfer rate and apply any surcharges or taxes to it..
Technically, Kabam (like all app vendors) sets the price for a transaction by declaring the transaction to be a certain tier. A tier 5 microtransaction might be $9.95, for example, in US currency. The Apple App Store then converts a tier 5 transaction into local currency for all other regions. This conversion is 100% under the control of Apple, app vendors have no control over it.
Apple in turn publishes conversions based on its own currency conversion rate and also factors in any cost of business Apple decides to stick in there to operate in that currency. It also adds locally mandated taxes and other charges. But the currency conversion itself is purely an App store thing Kabam has no control over.
Kabam can't even just make up the price for something. They can sell something for $29.95, but not $31.85. They must pick a price from Apple's transaction sheet.
Do each country in EU set their own tax rates ? (above mentioned Netherlands at 21%) And I’m assuming most of EU uses VAT Tax (is that instead of, or in addition to, income tax ?
And FYI, USA made very much more confusing because each state has their own Sales Tax rate, plus certain cities may add an additional amount onto that as well. AppStores probably use Sales Tax Rate based on your AppStore registered address/zip code.
@SummonerNR in short the answer is yes. The tax rates are not exactly the same the highest rate (luxury goods where these games are included in) go from 17 % (Luxembourg) to 27% (Hungary) but most are between 20&25% so they are in the same ballpark
Hey guys, we've already addressed concerns about price variation in different currencies HERE. To help keep the Forum tidy, I'll go ahead and close this discussion.
Comments
Apple in turn publishes conversions based on its own currency conversion rate and also factors in any cost of business Apple decides to stick in there to operate in that currency. It also adds locally mandated taxes and other charges. But the currency conversion itself is purely an App store thing Kabam has no control over.
Kabam can't even just make up the price for something. They can sell something for $29.95, but not $31.85. They must pick a price from Apple's transaction sheet.
This is a common mistake in comparing prices across the globe. The way thing are priced are different around the world. Another reason there is a difference is the risk of changing conversion rates between different currency’s. Those are also being incorporated in the prices by the different app-stores or even online or brick and mortar shops ...
It often does look wrong when one does a one tot one comparisons with current conversion rates when they don’t take those different factors into account
And FYI, USA made very much more confusing because each state has their own Sales Tax rate, plus certain cities may add an additional amount onto that as well. AppStores probably use Sales Tax Rate based on your AppStore registered address/zip code.
The tax rates are not exactly the same the highest rate (luxury goods where these games are included in) go from 17 % (Luxembourg) to 27% (Hungary) but most are between 20&25% so they are in the same ballpark