korell: Yes, I know the price IS inclusive of VAT, I was just trying to point out that they say it is and then they do a calculation to add a VAT cost on top of the price, which is wrong, and hence why that calculated VAT price is not added on to the total. They should be displaying it as per my calculation example really.
Namur: No, they don't do a calculation to add a VAT cost. They do a calculation to let you know how much of the 5.99$ is in fact the included VAT, and like i said, on receipts they have to let you know how much VAT they're charging.
The only thing you can point out is that they don't show the price without VAT on the receipt, but that's a bit irrelevant if you ask me. You know how much you're paying, and you know how much of that ammount is VAT.
What Korell is saying is that GOG are calculating VAT as 15% of $5.99, when in fact $5.99 is equal to the 'original price before tax' plus 15% of the 'original price before tax'. This means $5.99 is actually 115% of the 'original pricebefore tax'.
Value Added Tax is added on top of the price not taken from it. Therefore, the VAT value of 15% which makes up a part of the total price of $5.99 should equal $0.78 with the 'original price' coming to $5.21. Basically, GOG's assertion that $0.90 of every $5.99 paid goes towards to tax here in the UK is incorrect and Korell is right that the figure should be $0.78.
Interestingly if VAT is calculated at the old UK value of 17.5% and the calculation is rounded to the nearest cent at each stage than $0.90 would actually be correct. Perhaps they just didn't update the actual monetary value of VAT when they changed the percentage to the new rate last December.