Matrix Games Forums

The implication of the notice is that the price quoted includes VAT at 17.5%...and that this (and the total price) may change if your rate (say The Netherlands) is different (20%).

Which would be fine.

But in fact the price quoted is entirely before VAT. So a 17.5% VAT surprise.

Note the phrase:

"Any digital products sold into the European Union include a VAT (Tax) charge of 17.5%."

Not "will have a VAT charge added".

This is compounded that most people in the EU would expect that a price quoted to include VAT...unlike the US where it is normal for prices to exclude state tax.

The opportunity to see the VAT invoice after you complete the process does not mitigate the surprise!

Not that this is a new point. But new buyers still get caught out by it.

Hi,

I have to agree with Hartford that the wording of this text is at least "ambiguous" (and that IS a [legal] problem with regard to consumer expectation)

Furthermore, the explanation "Information about VAT" doesn't really make sense. Digital River obviously tried to implement the new VAT regulation of the EU Directive 2002/38/EC.
Under this Directive, any B2C transaction of electronically supplied services (Annex L of the Directive list "Supply of software and updating thereof" inter alia) of a Non EU supplier is subject to VAT "at the rate of the country where the customer resides". That would ALWAYS be the country where the (private) customer has residency.
Any transaction of a EU based supplier to a (private) customer inside the EU is ALWAYS subject to the VAT of the country where the SUPPLIER resides.

So the only situation in which the "Information about VAT" would make sense is the one in which all sales to Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Spain, Sweden, and UK are made by a business entity that is located in any EU member state while all the sales to the other EU countries are made by a different business entity that is located outside the EU.

Well, enough legal stuff. The reason why I write this at all is that I believe that electronic software distribution ("digital download") is truly great and can benefit both the customers and the supplier. Therefore it should be made as easy and transparent as possible for the customer and Software Publishers (like Matrixgames) should put pressure on the service provider (Digital River) if there are glitches in the system that make customer shy away.

Chuck B.

Im not really complianing but an option to see the full pric eincluding \vat and delivery would be nice before you have to purchase.

David, just as a little bit of feedback - I am sure you do very well with sales (and I am very pleased you do) but myself I can only fork out about 10 pounds a month on games and tend to be very patient. If Highway to the Reich etc were a straight 20 pounds (including VAT) I would buy new from you every time. Yes, I am sure youv'e heard it before and I am not in sales and marketing so do not understand the mechanics - I look at Amazon (UK) and e-bay (sharks) to try and get your products. It says a lot though that Uncommon Valour (excuse spelling) and Highway retain their value damn it!