These forums have been archived and are now read-only.

The new forums are live and can be found at https://forums.eveonline.com/

Science & Industry

 
  • Topic is locked indefinitely.
12Next page
 

PI Taxes wacked ?

Author
Airto TLA
Acorn's Wonder Bars
#1 - 2012-07-09 16:26:08 UTC
I honestly do not pay that close attention to the taxes normally sort of just accept it as part of the biz, and since I expend most of it in my own processes it is still cheaper than buying someone else's product by a large enough margin to make the effort worth it.

But today, it seemed a bit more painful. I did a little numerical back checking. This is high sec so 10% rate. I pulled a block of robotics and the tax worked out to exactly 7k per unit. The local market hub said around 42k a unit sell price, the value per ccp using the cargo hold valution thingie says 46k per unit, and the highest in in system price is 70k per unit. So from the looks of it it is taking the highest local price.

I performed a similar test with another product and with no in system items and the tax seemd to match a price 7 jumps away that showed as the highest in the region.


So the question is did CCP F'up a number in the patch (maybe as part of the "STOP THE GOONS FROM EXPLOITING FW" patch and so this is a market value mix up) or have I been getting screwed for a long time and have just been to lazy to notice it?

Pinstar Colton
Sweet Asteroid Acres
#2 - 2012-07-09 16:53:23 UTC
PI taxes are based on a static value, not the estimated market value.

See this thread for a more detailed discussion and explanation: https://forums.eveonline.com/default.aspx?g=posts&find=unread&t=129447

In the cat-and-mouse game that is low sec, there is no shame in learning to be a better mouse.

Ninyania alCladdyth
McLuvin AstroDynamics
#3 - 2012-07-09 16:56:07 UTC
Its not a *TAX*.

Its an import/export *DUTY*, and its a static value based on the tier of the product, not its current market value.
Wyke Mossari
Staner Industries
#4 - 2012-07-09 17:20:56 UTC

The problem is the people that consider stuff they produce themselves is free.

Just look at the red stripe down the profitability column of the PI Spreadsheet
Airto TLA
Acorn's Wonder Bars
#5 - 2012-07-09 17:25:57 UTC
I guess this what I get for not paying attention, but here is the most important part of the thread posted above.

This is the base price the game uses to set the tax.

P0 = 5 isk base cost
P1 = 500 isk base cost
P2 = 9,000 isk base cost
P3 = 70,000 isk base cost
P4 = 1,350,000 isk base cost


These prices are now way out of date and no longer have any basis in fact. It appears before that they were a little high (some items above, most below), but now they are high for just about everything. This means the effective tax (duty) rate is often 1.5 to 3 times as high as listed.

I guess if CCP wants a cash sink they have one, but this is a little silly. It also means a high corp owned POCO rate (40-50%) is basically now equal to the entire sales price of the item.

Two request if a DEv happens to read this

Put the above table somewhere in the game so we can find it.

Consider using recently devolped market value estimation tools to update the base prices.
Airto TLA
Acorn's Wonder Bars
#6 - 2012-07-09 17:39:20 UTC
Wyke Mossari wrote:

The problem is the people that consider stuff they produce themselves is free.

Just look at the red stripe down the profitability column of the PI Spreadsheet



Actually the my PI is free is not the main reason for the red bars, but is does contribute play a part in it, the big reason some items are losers, is that sometimes one or both your components of your item your are trying to produce have a higher value in another production line. Yes you should probaly just sell the inputs and buy the end product from some one else, BUT, the hassle of doing so and being subjuct to supply fluctuations, market manipulations and tracking minimum three more market orders makes the small transaction isk loss all worth as part of a bigger project.
Pinstar Colton
Sweet Asteroid Acres
#7 - 2012-07-09 18:30:12 UTC
As discussed in the other thread, having the taxes calculated off of the estimated market price, rather than the static prices used now, would very quickly tank the PI market by reducing the tax everyone pays in high sec. Lower taxes means less of an isk sink and a greater ability to undercut. Further undercutting means lower average market value which drops taxes even further.

In the cat-and-mouse game that is low sec, there is no shame in learning to be a better mouse.

Ginger Barbarella
#8 - 2012-07-09 18:43:01 UTC
Remember you get taxed on imports AND exports, each time you use it, in high. That 10% easily adds up to over 30% over the life of Robotics production (for example)

"Blow it all on Quafe and strippers." --- Sorlac

Airto TLA
Acorn's Wonder Bars
#9 - 2012-07-09 20:48:13 UTC
Pinstar Colton wrote:
As discussed in the other thread, having the taxes calculated off of the estimated market price, rather than the static prices used now, would very quickly tank the PI market by reducing the tax everyone pays in high sec. Lower taxes means less of an isk sink and a greater ability to undercut. Further undercutting means lower average market value which drops taxes even further.






Though a lowering of tax in this case should not actually lower the price all that much, I beleive the weight of the tax actually does fall economically on the backs of the PI producers.



Reasons, if the purchaser actually paid the price the close to 10x increase in taxes would not have resulted in the same level or lower in prices that we had before the tax. The production of PI net value is annoyance/time vs income generated, but the actual material cost is is basially zero since almost all cost except tax are sunk cost.

SO if you lowered the effective tax from 20% back to 10%, this would mean a small increase in actual profit and a few more peole would enter the market, price ould drop and the tax would drop a bit more but each wave would be 10% at most of the previous wave.



I think that PI producers in the relevant range pf prices fall into a yes/no situation either I produce or I don't If prices are high and I may give it a try or lower my cycle time if I already produce, but ittle would cahnge unless the market price rose or fell out of the relevant range. (if prices grow to high or fell to low people might change their behavior, but 10-20% changes in isk per Hour is not going to suddenly change alot of peoples mind on PI)


In hte real world economic burden get mostly passed on to the consumer since net margins are not nearly this this large, idling plants makes sense since there is a per unit costs, and demand is a bit more elastic and supply of certain other complementary products are more elastic. (in the real world higher oil prices cause more oil to be produced, in eve higher tech prices does not change the supply of tech since the Dev have set max production at a certain level, and Makinaw ganking setting the production of ICe) . Since more complementary products cannot be produced no matter what the price the market can only use so many units of PI.

Brewlar Kuvakei
Adeptio Gloriae
#10 - 2012-07-09 20:55:56 UTC  |  Edited by: Brewlar Kuvakei
Stop doing PI in high sec if you don't want to get taxed. High SEC PI is a 100% risk free venture so the isk is intended to be terrible. Go find yourself a nice low, null or wh plannet. Even if you don't want the effort of gaurding your own custom offices you can talk about rates with current owners. Plenty of people will be glad to have you paying tax to them if your into PI on a large scale effort and if the tax is unreasonable shoot their customs office they will most likely get bored and see reason to allow fair tax rates.
Eric Raeder
No Fee Too High
#11 - 2012-07-10 05:38:11 UTC
Airto TLA wrote:
I guess this what I get for not paying attention, but here is the most important part of the thread posted above.

This is the base price the game uses to set the tax.

P0 = 5 isk base cost
P1 = 500 isk base cost
P2 = 9,000 isk base cost
P3 = 70,000 isk base cost
P4 = 1,350,000 isk base cost



[facepalm]

I've been doing PI for over a year and thought I understood the tax system, but truly in Eve you learn something new every day. I was under the impression import/export fees depended on volume, and have spent a lot of time trying to minimize movement of low end products. When it turns out the low end products pay less tax per unit volume than the high ends...
Lady Katherine Devonshire
Royal Ammatar Engineering Corps
#12 - 2012-07-10 14:13:43 UTC
So when is CCP adding things like local standings and trade skills into this equation?

After all, standings & trade skills seem to affect every other annoying fee in the game, so why not this one one too?

New PI/Trade skill: "Orbital Manager (x2) - Each level lowers duty fees for moving planet materials between spaceports and customs stations by 10%"

C'mon CCP, work with us here!
Pinstar Colton
Sweet Asteroid Acres
#13 - 2012-07-10 14:21:29 UTC  |  Edited by: Pinstar Colton
Lady Katherine Devonshire wrote:
So when is CCP adding things like local standings and trade skills into this equation?

After all, standings & trade skills seem to affect every other annoying fee in the game, so why not this one one too?

New PI/Trade skill: "Orbital Manager (x2) - Each level lowers duty fees for moving planet materials between spaceports and customs stations by 10%"

C'mon CCP, work with us here!


They do have that.

Corporations who own POCOs can set different tax rates for players with different standings to that corporation. Want a lower tax rate on the POCO of X planet? Make friends with that corp.

As for skills that reduce the duties on import/export... PI is already based on trying to maximize your margins. As such, the Accounting and Broker Relations skills already help your margins. If you want to reduce the taxes you pay on the PI goods...go seek a POCO with a lower tax rate. No need for a skill for that.

In the cat-and-mouse game that is low sec, there is no shame in learning to be a better mouse.

Barbara Nichole
Royal Amarr Institute
Amarr Empire
#14 - 2012-07-10 17:49:04 UTC  |  Edited by: Barbara Nichole
Airto TLA wrote:
I honestly do not pay that close attention to the taxes normally sort of just accept it as part of the biz, and since I expend most of it in my own processes it is still cheaper than buying someone else's product by a large enough margin to make the effort worth it.

But today, it seemed a bit more painful. I did a little numerical back checking. This is high sec so 10% rate. I pulled a block of robotics and the tax worked out to exactly 7k per unit. The local market hub said around 42k a unit sell price, the value per ccp using the cargo hold valution thingie says 46k per unit, and the highest in in system price is 70k per unit. So from the looks of it it is taking the highest local price.

I performed a similar test with another product and with no in system items and the tax seemd to match a price 7 jumps away that showed as the highest in the region.


So the question is did CCP F'up a number in the patch (maybe as part of the "STOP THE GOONS FROM EXPLOITING FW" patch and so this is a market value mix up) or have I been getting screwed for a long time and have just been to lazy to notice it?



This is what happens when null sec has nearly all the seats in the CSM desipte 80% of the gaming popuation not living there.This is what happens when you allow non-high sec players to set the agenda by firehosing propaganda out about risk unopposed. Despite the fact that in many places high sec risk is equivalent to null sec risk (it just takes a different form).. The high sec reward has been slashed in a vain effort to drive players into null sec. Forget the fact that rewards in null sec can be godly, hundreds of millions per hour, null seccers still complain when high sec players make "6 million" an hour. (6 million is an actual quote from a null sec whiner)

There are many reasons to play in high sec.. most of these reasons have nothing to do with safety or escaping risk.

  - remove the cloaked from local; free intel is the real problem, not  "afk" cloaking -

[IMG]http://i12.photobucket.com/albums/a208/DawnFrostbringer/consultsig.jpg[/IMG]

Barakach
Caldari Provisions
Caldari State
#15 - 2012-07-10 18:09:28 UTC  |  Edited by: Barakach
My import/export tax is about 600mil/month according to EveMentat
Eddie Reynolds
Royal Amarr Institute
Amarr Empire
#16 - 2012-07-11 21:01:11 UTC  |  Edited by: Eddie Reynolds
Barbara Nichole wrote:
[quote=Airto TLA]

This is what happens when null sec has nearly all the seats in the CSM desipte 80% of the gaming popuation not living there.This is what happens when you allow non-high sec players to set the agenda by firehosing propaganda out about risk unopposed. Despite the fact that in many places high sec risk is equivalent to null sec risk (it just takes a different form).. The high sec reward has been slashed in a vain effort to drive players into null sec. Forget the fact that rewards in null sec can be godly, hundreds of millions per hour, null seccers still complain when high sec players make "6 million" an hour. (6 million is an actual quote from a null sec whiner)

There are many reasons to play in high sec.. most of these reasons have nothing to do with safety or escaping risk.


haha i have no idea what im doing in EVE and I make ~10mill/hour jet canning veldspar (with an alt to haul) to sell as ore 2 jumps from the stations my character was spawned at. Poor nullsec boys.

Not that im calling you a liar, but do you have a source for the pilot population statistics? Id be interested to see where people live just because im curious. And if your point about the counil membership is true, then there might be something well broken with they system. However I think it likely that the poeple playing the most in EVE are probably those nullsec boys, it is an economic rule of thumb that 80% of your profit will come from 20% of your customers - this applies to many areas of business. It is called the Paraeto Principal. This could legitimately explain why nullsec boys are at the top of the food chain.

In my IRL job this principle is readily apparent. edit: checked wiki - "The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes." This is a great way of explaining it in general terms.
Hakaru Ishiwara
Republic Military School
Minmatar Republic
#17 - 2012-07-13 01:11:23 UTC
If discussing EVE population numbers, please consider that many null-sec character owners also have a handful of characters supporting their null-sec activities. Some of those characters may, in fact, be permanent high-sec residents.

I am not downplaying the desire (need?) to keep improving high-sec game play or that high-sec players deserve more comprehensive CSM representation, but it is always good to have perspective on things.

+++++++ I have never shed a tear for a fellow EVE player until now. Mark “Seleene” Heard's Blog Honoring Sean "Vile Rat" Smith.

Daniel Plain
Doomheim
#18 - 2012-07-16 16:10:16 UTC
Hakaru Ishiwara wrote:
If discussing EVE population numbers, please consider that many null-sec character owners also have a handful of characters supporting their null-sec activities. Some of those characters may, in fact, be permanent high-sec residents.

I am not downplaying the desire (need?) to keep improving high-sec game play or that high-sec players deserve more comprehensive CSM representation, but it is always good to have perspective on things.


the question is whether the stated numbers represent the ratios of total character count by system or the ones that are actually logged in. the way I see it, a statistic that would weight each character with the time he spent online would be much more representative.

I should buy an Ishtar.

Reaper gI
Me Wanna Machariel
#19 - 2012-07-16 16:31:53 UTC  |  Edited by: Reaper gI
Eric Raeder wrote:
Airto TLA wrote:
I guess this what I get for not paying attention, but here is the most important part of the thread posted above.

This is the base price the game uses to set the tax.

P0 = 5 isk base cost
P1 = 500 isk base cost
P2 = 9,000 isk base cost
P3 = 70,000 isk base cost
P4 = 1,350,000 isk base cost



[facepalm]

I've been doing PI for over a year and thought I understood the tax system, but truly in Eve you learn something new every day. I was under the impression import/export fees depended on volume, and have spent a lot of time trying to minimize movement of low end products. When it turns out the low end products pay less tax per unit volume than the high ends...

Not to mention that (almost) all production except p0- p1 is loss making anyway (even without import/export tax).

p2 is only made for compression to have to do less hauls in non-highsec space to reduce risk (at the loss of profits).

If you can sell at p1 you should.
Or you have to sell final products (POS components/ t2) and use not buying off market to save you sales taxes for that extra percentage point of margin.
Unless you're a big, skilled up industrialist sell at P1.
Styth spiting
Brutor Tribe
Minmatar Republic
#20 - 2012-07-16 18:16:44 UTC
Changes to the tax rate will dramatically change (lower) the prices of current PI mats. If say for example P3 was lowered to a real 10% duty tax of 4,400 for exports you can bet the prices for robotics would drop to match the difference in duty tax within a few days, which then would go on and effect all other manufacturing (ice for example).

Overall you wont make any more money in PI. Infact you'll make less IMO as more people get involved since its "more profitable" when in reality the money you'll be making will be equal or less. The only advantage will be to people who buy goods that use PI mats since these items sell prices will decrease to match the lower manufacturing costs. Sure you'll pay less for the initial mats, but you'll also make less selling the mats or finished goods.

The only way profits will go up for selling mats / manufactured items is if the demand for them goes up, the tax rate won't make any difference after a 2 week period.

12Next page