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Online PLEX Code prices

First post
Author
Lairel Dallocort
Hot Lobster
#81 - 2014-06-18 21:42:52 UTC  |  Edited by: Lairel Dallocort
https://en.wikipedia.org/wiki/Purchasing_power_parity

The prices of things in different currencies and countries is supposed to be based on purchasing power. Nominally, the exchange rate would be equal to the purchasing power parity between two countries, but as you can read in the article above this is not always the case. I'm not saying that CCP is going by the purchasing power index to price PLEX ; they probably aren't. However, the presiding theory on purchasing power says that there "should" be one price across different currencies, ideally. The real purchasing power index of the Euro according to OECD for 2013 is 0.772762 USD to Euro. Based on today's exchange rate of 0.74 Euros per USD, We can arrive at a fair price in Euros for a PLEX at $34.99 USD of €33.50 {calculation: (34.99*.74)/0.772762}.

Edit: It's kind of sad that even CCP's official response was about VAT when it really has nothing to do with international product pricing. VAT and other taxes are accounted for in the purchasing power index and in the currency exchange rates via market corrections.
Sibyyl
Garoun Investment Bank
Gallente Federation
#82 - 2014-06-18 21:58:42 UTC
Unsuccessful At Everything wrote:
The solution is simple:

We either nerf America... or kill the batman..

Not sure which one is relevant here..

Not sure it's a good idea, because we'd have to hire a clown to do either one.

Joffy Aulx-Gao for CSM. Fix links and OGB. Ban stabs from plexes. Fulfill karmic justice.

Jonah Gravenstein
Machiavellian Space Bastards
#83 - 2014-06-18 22:02:32 UTC
Sibyyl wrote:
Unsuccessful At Everything wrote:
The solution is simple:

We either nerf America... or kill the batman..

Not sure which one is relevant here..

Not sure it's a good idea, because we'd have to hire a clown to do either one.

Some would say that the clown has already been hired P

In the beginning there was nothing, which exploded.

New Player FAQ

Feyd's Survival Pack

Lairel Dallocort
Hot Lobster
#84 - 2014-06-18 22:03:45 UTC
Jonah Gravenstein wrote:
Sibyyl wrote:
Unsuccessful At Everything wrote:
The solution is simple:

We either nerf America... or kill the batman..

Not sure which one is relevant here..

Not sure it's a good idea, because we'd have to hire a clown to do either one.

Some would say that the clown has already been hired P


Something, something Obama something.
Jonah Gravenstein
Machiavellian Space Bastards
#85 - 2014-06-18 22:23:28 UTC  |  Edited by: Jonah Gravenstein
Lairel Dallocort wrote:
Jonah Gravenstein wrote:
Sibyyl wrote:
Unsuccessful At Everything wrote:
The solution is simple:

We either nerf America... or kill the batman..

Not sure which one is relevant here..

Not sure it's a good idea, because we'd have to hire a clown to do either one.

Some would say that the clown has already been hired P


Something, something Obama something.

I was actually referring to Ben Affleck, but I suppose it works the other way for some..

In the beginning there was nothing, which exploded.

New Player FAQ

Feyd's Survival Pack

KaarBaak
Squirrel Team
#86 - 2014-06-18 22:53:48 UTC
I read through about half the thread because...well...most of the posts just keep saying the same thing over and over...and well...this thread is repeated over and over.

To me it boils down to this: what do YOU pay for EvE? Is it worth that? Does it matter if the person next to you pays two dollars or 200 dollars more or less than you? No. Shouldn't affect your game whatsoever.

It's either worth what you pay or it's not. Fairness shouldn't enter into it. I think about what equivalent entertainment I could get for my $11/month and EvE wins that battle time and again. If the price changes, or my interest in the game changes, I'll re-evaluate that equation. Or if I move to Europe and my price per "entertainment unit" changes.

But debating some players paying more or less than others seems like a waste of time. Like a 3 year old child complaining that his piece of cake isn't as big as his sister's.

Is EvE worth what you pay? Yes or no?

Yes? See you out there.

No? Stuff request.

KB

Dum Spiro Spero

Spiritas
Asmart Revolt
#87 - 2014-06-19 07:32:05 UTC  |  Edited by: Spiritas
voetius wrote:

If only someone had asked this same question two weeks ago and a dev had replied with an explanation to supplement and confirm what you have already been told by several posters.

https://forums.eveonline.com/default.aspx?g=posts&m=4640844#post4640844




Using his answer it is still the same problem, even with the highest varient of EU Tax - 27% there is still an overcharge on a UK purchase in comparison to a US purchase.

Similarly for reference sake in terms of international law a purchase of digital goods is for tax purposes to take place at the point of origin. sell something from luxembourg and pay 3% UK Import/Sales Tax however buy the same thing in france and you pay almost 20%.

As the goods are being sold via amazon, which is owned in the US we should be charged the US prices.

When I do a tracert on Amazon.co.uk (IP 176.32.108.186) the host of that address is actually in Ireland (il admit I was surprised)
When I do a tracert on Amazon.com (IP 205.251.242.54) the host of that address is in the US so we should pay US tax.

IF i look up secure.eveonline.com (IP 87.237.39.170) The host (rather disapointingly il admit) Is in the UK so we should ONLY pay 20% Vat - and thats only if they arent being smart and selling the goods from abroad.

They "could" market things in a way so we pay the same or nearer to it, I fail to see why they aren't.


TO summarise the above they are basically obeying the tax man to their best ability. we are most likely all paying the absolute maximum in excise and import duties to avoid accidentally not paying them, THIS IS GOOD because if we dont pay it. they don't suffer. we do.

Seriously the difference is collecting on delivery and the fines are applied to you and me folks. I don't like it but CCP are playing the smart game, buy your PLEX from alternative countries, or values and technically your committing tax evasion.
SurrenderMonkey
State Protectorate
Caldari State
#88 - 2014-06-19 15:25:18 UTC  |  Edited by: SurrenderMonkey
Spiritas wrote:


When I do a tracert on Amazon.co.uk (IP 176.32.108.186) the host of that address is actually in Ireland (il admit I was surprised)
When I do a tracert on Amazon.com (IP 205.251.242.54) the host of that address is in the US so we should pay US tax.



Yeah, that's really not how it works. Amazon, while an "American" company, has a business-presence in the UK that obligates them to comply with various aspects of UK law in as much as is reasonably possible. They have offices and warehouses and fulfillment centers in the UK - plenty of assets for the UK government to make their life hell if they don't think they're playing fairly.

This means that as a resident of the UK, you're doing business with a company in the UK, regardless of where it's headquartered, and it certainly doesn't matter if the server for the website is in the UK, the US, or on the moon.

There are ways to sidestep the rules, but don't be confused about what the rules actually are. There is no, "Oh gosh, that guy was clever enough to go to the US-homed version of the site - guess he doesn't need to pay his VAT because he's so gosh-darned smart!" exception.

"Help, I'm bored with missions!"

http://swiftandbitter.com/eve/wtd/

Ramona McCandless
Silent Vale
LinkNet
#89 - 2014-06-19 15:28:11 UTC
I'd like to pay the same amount for coffee, petrolium, tobacco, cars, aeroplane flights, cable rental, toys, video games, porn, hard drugs, cheap labour, candy and consumer electronics as the US.

But that's not happenin either

"Yea, some dude came in and was normal for first couple months, so I gave him director." - Sean Dunaway

"A singular character could be hired to penetrate another corps space... using gorilla like tactics..." - Chane Morgann

Cipher Jones
The Thomas Edwards Taco Tuesday All Stars
#90 - 2014-06-19 19:52:20 UTC
Arkumord Churhee wrote:
Dear CCP,

what have european customers of yours done to you? If, say, you were to buy a 2 PLEX Code online, customers paying in EUR are charged 34,99 EUR. US customers are charged 34,99 USD.

Quick googling of the conversion tells me that 34,99 USD converts to 25,84 EUR at the time of writing. Accounting for german VIT which applies in my case it amounts to 30.75 EUR. That's over 5 EUR less! My question here is: Why? Why do european customers pay that much more for the same service that US customers get?

Doesn't sound quite fair to me... please explain!

(Crosspost from german subforum)

(Edited to reflect the fact that i DID account for taxes)


They pay exactly the same.

In California, the house I live in would cost 3 times as much.

Oh CCP, why are you making Californians pay $104.97 for a GTC?

internet spaceships

are serious business sir.

and don't forget it

Domania
Must Be EOL Cuz Wormholes Dont Jiggle Like This
#91 - 2014-06-20 19:17:01 UTC
Mithandra wrote:

Unless CCP can come up with some hard figures to dispute the OP's post i'd say he has a point.


Or they'll just ignore him, he'll continue to kick and scream. Life will go on.

Either way, the solution would be to move to the US, and have the company you work for continue to pay you in euros. Or you could take over Europe and get rid of taxes, force CCP to lower their prices as supreme overlord.
Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#92 - 2014-06-20 22:29:02 UTC  |  Edited by: Scipio Artelius
Domania wrote:
Either way, the solution would be to move to the US, and have the company you work for continue to pay you in euros.

That wouldn't work out very well.

At some point you have to purchase things in USD and that's where the banks come in to convert your EUR to USD.

Unfortunately the rate at which they do that favours them and then they apply charges to the process too.

I lived that life for 7 years and while you can negotiate with the banks for better rates, they always win.