1 - Higher taxes. Taxes on games and other entertainment products are commonly higher in Europe. In my country for example it's 23%. In the US sales tax very rarely goes above 10% (it varies by jurisdiction).
2 - In Europe and most other countries, sales tax is included in the price. In the US (and Canada as far as I know) it isn't. So if you are in a store in Europe and the price tag says "€50", when you get to register you pay €50 and nothing more. In the US if the price tag says "50$", you don't pay 50$. You pay 50$ PLUS sales tax. If sales tax is 8% for example, you end up paying 50$+50*0.08= 54$. If it were 23% like it is where I live it would be 61.5$ even though the price tag said 50.
By giving back the difference GOG is also giving you back the tax difference, therefore they quite probably actually make less money from selling games in Europe.
cataclism: Now, VAT in my country is abnormally high but it's not much lower in most EU countries. In Germany, where Lifthrasil, whom I quoted, lives, it's 19%.
If taxes in the US were 19% like in Germany a game with "50$" on the tag would actually cost 59.5$. (50+50*0.019=59.9).
A game that costs 60$ would actually cost 71.4$ which translates to €58.0034 which is not that different from the 60$ many new games cost at launch (like the witcher 3 for example).
So yes, the difference in VAT rates and the fact that VAT is included in the price in the EU do explain it.
My comment wasn't specifically about GOG, but let's talk about GOG then:
1) Do non-EU customers end up paying more than the price tag shows during the checkout? AFAIK, they don't.
2) Aren't all sales officially registered within EU area (Cyprus/Poland/some other place)? Shouldn't that make VAT prices
the default, which has never been the case so far?
3) I have hundreds of games on GOG, but to date, my receipts have never, not once, showed the VAT percentage, which at least in my country is required by law just like having the final price visible.
And often also stating which country's VAT rate is being used, if it's not obvious otherwise, which has never been shown in GOG receitps either.
4) Case Switzerland. I believe VAT in Switzerland is 8%. They are not part of EU and don't use Euro.
Why do they have to pay that extra price then?
(Of course if we think about those FIGS translation costs and increased production costs, 3 out of those 4 languages apply to Switzerland in that case. But that really has nothing to do with the taxation issue.)