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General discussionAnnouncement: Big Preorders & Launch Day Releases Coming!(4041 posts)(4041 posts)
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Posted February 21, 2014
The DRM-Free Revolution Continues with Big Pre-Orders and Launch Day Releases!

Good news! GOG.com is going to bring you more fantastic launch day releases, preorders, and other exciting new content from some of our favorite developers. We've lined up 3 big titles that we will be bringing to GOG.com in the next couple of months for sale or preorder that we think will be hits with all of our gamers; and we have more equally exciting games coming up soon.

If you've been a member of the site for a long time, you may recall that when we launched sales of The Witcher 2 on GOG.com, we had to add in regional pricing. The game cost different amounts in in the US, the UK, the European Union, and Australia. We're doing something like that once again in order to bring you new titles from fantastic bigger studios. Since we don't accept currencies other than USD on GOG.com right now, we'll be charging the equivalent of the local price in USD for these titles. We wish that we could offer these games at flat prices everywhere in the world, but the decision on pricing is always in our partners' hands, and regional pricing is becoming the standard around the globe. We're doing this because we believe that there's no better way to accomplish our overall goals for DRM-Free gaming and GOG.com. We need more games, devs, and publishers on board to make DRM-Free gaming something that's standard for all of the gaming world!

That brings with it more good news, though! As mentioned, we have three games we're launching soon with regional pricing--two RPGs and a strategy game--and while we can't tell you what they are yet because breaking an NDA has more severe penalties than just getting a noogie, we're confident that you'll be as excited about these games as we are. For a limited time, we will be offering anyone who pre-orders or buys one of them a free game from a selection as a gift from GOG.com, just like we did for The Witcher 2.

If you have any questions, hit us up in the comments below and we'll be happy to answer (to the best of our ability).

EDIT: Since we've answered a lot of the common questions already here (and lest you think that we've ignored you), it may be handy for you to check out the forum thread about this and search for staff answers by clicking this link here. (hat tip to user Eli who reminded us that the feature even exists. :)
Posted February 25, 2014
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JohnnyDollar: Thanks. They've figured out about how much VAT would cost and that went into the breakdown of how much they charge for the game. Publisher wants x amount per sale for a game. GOG takes x and adds VAT estimate/other taxes estimate + GOG's cut and other stuff :P = $9.99

That's how I assume they've done it, and that takes care of as they say "additional costs are covered by us".
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GabiMoro: GOG sells a 9,99$ game to an american:
Developer gets 7$ and GOG gets 2,99$ (no sale tax).

GOG sells a 9,99$ game to an european:
Developer gets 7$, GOG gets 1,32$ and 1,67$ represents VAT (goes to the country the buyer resides, I choose a 20% VAT but that could be lower or larger depending on country).
You sure?

How about this example:

GOG sells a $9.99 game to anybody in the world
Publisher gets $7 GOG gets $2.99 - estimated cost of taxes and fees = GOG gets $1.99

GOG pays VAT taxes for total sales to EU customers every quarter, or however they do it.
Post edited February 25, 2014 by JohnnyDollar
Posted February 25, 2014
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GabiMoro: GOG sells a 9,99$ game to an european:
Developer gets 7$, GOG gets 1,32$ and 1,67$ represents VAT (goes to the country the buyer resides, I choose a 20% VAT but that could be lower or larger depending on country).
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mobutu: We dont know that, maybe they have negociated that the developer/publisher also supports some percentage of the vat, like 50-50 or something
You are right, but somebody has to cut it's share to pay that VAT.

"One price" seems fair for us customers but is it that fair?
Posted February 25, 2014
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GabiMoro: You are right, but somebody has to cut it's share to pay that VAT.
EU can expect a nice love letter from me during this year's election :) I'll send them someone who really 'loves' them :)
Posted February 25, 2014
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GabiMoro: You are right, but somebody has to cut it's share to pay that VAT.
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Novotnus: EU can expect a nice love letter from me during this year's election :) I'll send them someone who really 'loves' them :)
Who's that?
Posted February 25, 2014
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GabiMoro: Who's that?
I'll have to investigate who's standing for the election :)
Certainly not those folks who rose VAT from 22% to 23% :)
Posted February 25, 2014
BTW.

If you are going to do new releases are you also going restrict them based on region specific launch dates?

Just to be "fair" for customers in other shops?
Posted February 25, 2014
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Phc7006: My opinion is that GOG applies the EU law on this. Based on the Directive on the sale of digital goods, theyhave to charge VAT on digital services to EU customers and they don't have to charge it to non EU customers. However, as VAT also exists in most other countries, it is possible that some non EU countries consider that the supply of digital services to their residents is located at the place of estblishment of the consumer ( that would mean that GOG would then collect a non EU VAT ) . As there is now a tendency to tax these serices at the rate applicable in the Consumer's country of residence ( as of 1.1.2015 is EU, considered in Japan ,...), one should expect VAT to become an heavier burden for digital services providers
So you are saying that perhaps the seller (GOG in this case) charges VAT even for non EU countries (country which has no VAT) ?
Posted February 25, 2014
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GabiMoro: Nothing could beat the Insomnia Sale! :)
Probably not, but it's still early. :P
Posted February 25, 2014
Will the new games GOG is excited about be drm free exclusively to GOG?
Posted February 25, 2014
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GabiMoro: Who's that?
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Novotnus: I'll have to investigate who's standing for the election :)
Certainly not those folks who rose VAT from 22% to 23% :)
You lucky bastards. We have a 24%.

But nothing can beat Hungary with a 26% VAT :).
Posted February 25, 2014
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JudasIscariot: We'll see how you feel in about 49 minutes, then :P
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JohnnyDollar: Over 3,400 posts. Did you think that GOG would generate so much excitement over preorders for 3 new launch day releases? It's fantastic isn't it?

:P
Oh, I was referring to German language support and nothing else. Sorry if I didn't make myself clear earlier :)
Posted February 25, 2014
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GabiMoro: So you are saying that perhaps the seller (GOG in this case) charges VAT even for non EU countries (country which has no VAT) ?
That's my guess. I think it's in the breakdown of the cost of the game. An estimation of taxes and fees (edit: where those taxes and fees are applicable i.e. EU customers) were included whenever they figured out the price of the games. Everyone buying games at GOG are paying for VAT taxes and whatever other fees and taxes that have to be paid.

Edit: I just can't believe that GOG pays for that out of their own pocket. Those taxes and fees are in excess of 20%, and taxes usually go up over time. No way.

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JohnnyDollar: Over 3,400 posts. Did you think that GOG would generate so much excitement over preorders for 3 new launch day releases? It's fantastic isn't it?

:P
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JudasIscariot: Oh, I was referring to German language support and nothing else. Sorry if I didn't make myself clear earlier :)
I was being facetious. I wasn't referring to the content of your post. :)
Post edited February 25, 2014 by JohnnyDollar
Posted February 25, 2014
Summoner released :D! Wow, I always wanted to play that game (and I missed the oportunity back in time)

I´ll get it this week :B
Posted February 25, 2014
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Phc7006: My opinion is that GOG applies the EU law on this. Based on the Directive on the sale of digital goods, theyhave to charge VAT on digital services to EU customers and they don't have to charge it to non EU customers. However, as VAT also exists in most other countries, it is possible that some non EU countries consider that the supply of digital services to their residents is located at the place of estblishment of the consumer ( that would mean that GOG would then collect a non EU VAT ) . As there is now a tendency to tax these serices at the rate applicable in the Consumer's country of residence ( as of 1.1.2015 is EU, considered in Japan ,...), one should expect VAT to become an heavier burden for digital services providers
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GabiMoro: So you are saying that perhaps the seller (GOG in this case) charges VAT even for non EU countries (country which has no VAT) ?
It won't charge EU vat for them, but might have to register , say in Russia, for the purpose of Russian VAT and then charge Russian VAT ( although for Russia, i'm pretty sure it's not yet the case. The EU was very proud to be the first place to introduce a taxation @ the place of consumer, and it will only enter into force as of 2015)
Posted February 25, 2014
i don't get the reason for doing this yet.


they say it's because of VAT and similar stuff, but i did not understand why they have to pay VAT for it. there is nothing physical crossing any border - no product, no money, nothing. for e.g. the usa, the service belong to the country, all the wages belong the the country, all taxes and so on. even the product will belong to it, because most modern TOS grant you the right to play the game, but not to own it.


so there is only a transfer of digital bytes, and i pay for the traffic to my isp. i also pay for exchanging euro to dollar. paying for paying in dollar. after all, i payed all my country based taxes before - and they don't have to care about what i'm doing with the money i saved on the top.

they say, "hey cool new feature for our european fans - pay in euro now!" but the only "cool new feature" is the fact, that they are able to make more profit. and pumping more money in an economy for a product is some kind of an inflation.
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Community
General discussionAnnouncement: Big Preorders & Launch Day Releases Coming!(4041 posts)(4041 posts)
(4041 posts)