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That price includes VAT. According to google 599 USD is 557 EUR. Add VAT to that, e.g. Finnish 24%, and you get 691 EUR. Not that far from the 699 EUR listed pr
by Strom 11y ago
That price includes VAT. According to google 599 USD is 557 EUR. Add VAT to that, e.g. Finnish 24%, and you get 691 EUR. Not that far from the 699 EUR listed price.
- MagnumOpus 11y agoYou don't add Finnish 24% VAT but the VAT of the country where the EU branch of the company is based - most likely Luxembourg with its 15% VAT rate. (All Amazon deliveries to the Eurozone come from Amazon EU SARL in Luxembourg, for instance). Which means the fair price would be EUR 640, almost 10% lower.
- Strom 11y agoVAT is based on the buyer's country for digital goods/services [1], and in other cases (such as this) if the sales exceed 100 000 EUR per year. [2][3] In some countries, like Finland, the limit is even lower at 35 000 EUR per year. [4] So if Oculus expects to sell more than 50 copies of the Rift to Finland, it will have to pay the Finnish VAT. Also, Luxembourg's VAT is 17% nowadays. [5] [1] https://kdp.amazon.com/help?topicId=A30464Q6OVH578 https://kdp.amazon.com/help?topicId=A30464Q6OVH578 [2] https://en.wikipedia.org/wiki/European_Union_value_added_tax#Distance_sales https://en.wikipedia.org/wiki/European_Union_value_added_tax... [3] https://www.gov.uk/guidance/vat-what-to-do-if-youre-an-overseas-business-selling-goods-in-the-uk https://www.gov.uk/guidance/vat-what-to-do-if-youre-an-overs... [4] http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf http://ec.europa.eu/taxation_customs/resources/documents/tax... [5] http://www.vatlive.com/european-news/luxembourg-vat-rise-17-2015/ http://www.vatlive.com/european-news/luxembourg-vat-rise-17-...
- TulliusCicero 11y agoHave to also account for labor costs being higher in Europe, I'd bet.