Premium membership

[+The Famous Geo5]

Does anyone know why a gift premium membership is 29.99 USD but if I upgrade my own it is 32.99 USD?

Thanks

[+barefootjeff]

39 minutes ago, The Famous Geo5 said:

Does anyone know why a gift premium membership is 29.99 USD but if I upgrade my own it is 32.99 USD?

Thanks

 

I have no idea, but the difference is ten percent so maybe it's a tax thing.

[+speakers-corner]

I wonder if you can gift yourself a premium membership

[+HunterandSamuel]

8 hours ago, The Famous Geo5 said:

Does anyone know why a gift premium membership is 29.99 USD but if I upgrade my own it is 32.99 USD?

Thanks

 

I'm guessing that a gift premium membership is less because it's for new members, kinda like a discount. Like our cable company is giving new subscribers a discounted deal than what we long time subscribers have to pay. I hope that made sense! 

 

 

Edited January 24, 2020 by HunterandSamuel

[Rock Chalk]

7 hours ago, The Famous Geo5 said:

Does anyone know why a gift premium membership is 29.99 USD but if I upgrade my own it is 32.99 USD?

Thanks

 

 

As an Australian member, you will see GST noted on the page after you click "Renew Membership" from the Membership tab.

 

As a result of a law enacted in Australia in 2017, we have an obligation to collect Goods and Services Tax (GST) for sales of Premium memberships to members in Australia. Premium memberships that renewed on or after July 1, 2017 are charged 10% GST in addition to the renewal amount. HQ pays the tax to the Australian Taxation Office.

 

 

[+on4bam]

2 minutes ago, Rock Chalk said:

 

 

As an Australian member, you will see GST noted on the page after you click "Renew Membership" from the Membership tab.

 

As a result of a law enacted in Australia in 2017, we have an obligation to collect Goods and Services Tax (GST) for sales of Premium memberships to members in Australia. Premium memberships that renewed on or after July 1, 2017 are charged 10% GST in addition to the renewal amount. HQ pays the tax to the Australian Taxation Office.

 

 

I asked it before and 'll ask it again, What's GS' VAT number for EU customers? You may not be aware but customers who have a business and gift PM can reclaim paid VAT. They need GS' VAT number to do so. Every company prints this info on their invoice (except GS) and within the EU it's mandatory to put this number on their website.

 

[+frostengel]

9 hours ago, The Famous Geo5 said:

Does anyone know why a gift premium membership is 29.99 USD but if I upgrade my own it is 32.99 USD?

Thanks

 

I don't know but I am sure you'll find someone to give you one. In exchange you could give one back so both of you get the dicsount. :-)

 

This is just a speculation: The cost of the membership depends of were you live. (We had discussions about that many times as in Germany we pay 29,99 Euro which is more than 29,99 Dollars.) Perhaps they can't give this "special for your place" price when the membership is a gift as they can't use your special place as you are not the one getting the membership. So gifts are "one price" while the normal price is not depending of your home country?

[+BethDaddyKaty]

8 hours ago, on4bam said:

 

I asked it before and 'll ask it again, What's GS' VAT number for EU customers? You may not be aware but customers who have a business and gift PM can reclaim paid VAT. They need GS' VAT number to do so. Every company prints this info on their invoice (except GS) and within the EU it's mandatory to put this number on their website.

 

EU826017834

 

Although you're right, it's very poor that this isn't on receipts as it makes reclaiming more difficult.

[+on4bam]

9 hours ago, BethDaddyKaty said:

EU826017834

 

Although you're right, it's very poor that this isn't on receipts as it makes reclaiming more difficult.

 

Not only that but in an old thread (2016) GS claimed they couldn't disclose their VAT number for legal reasons

 

Edit: Looks like "legal" changed it's mind as they now publish it on the contact page.

 

Edited January 25, 2020 by on4bam

[+HunterandSamuel]

10% tax is a substantial increase. And here in the U.S. I thought we were overtaxed!  

[+BethDaddyKaty]

24 minutes ago, HunterandSamuel said:

10% tax is a substantial increase. And here in the U.S. I thought we were overtaxed!  

VAT here and sales tax in the US are different.

 

Firstly here everything is at standard rates across the EU, 0% for things like most groceries, kids clothes etc.

 

5% for things like electric.

 

Circa 20% for "luxuries" including GCing memberships

 

There are no further local taxes and unless you're surviving on GCing memberships and chocolate (not that it's my place to criticise) the tax you pay across everything will be much less as most of what you buy will be zero rated.

 

In the US every time a product is retailed you pay sales tax.

 

I'm.aware of course that in the US it varies by state so that's far from true everywhere, but that's the general way a "pure" sales tax works before you complicate things by not having the same rule for 500 million people.

 

With VAT if you are buying something in the course of your business you can reclaim the VAT.

 

Also the thresholds here are only monetary- currently as a business if you earn less than £85k a year you don't pay any VAT. In the US the limit is usually transaction limited as well as financial. Means someone selling cakes at a farmers market each weekend doesn't need to pay VAT.

 

So essentially, if you are running a business VAT tends to work well because you only pay tax on the *value you have added to the product*, when you sell it. Here because of geography and cost of warehousing it's more common for say a product to bounce around between multiple businesses to get the final product whereas in the US it tends to be more economic to do everything on one site.

 

Tl;dr for us poor buggers who have to study this there are pros and cons to both but as a consumer you pay nowhere near 20% averaged across everything and the rules for business tend to be more straightforward, you don't need complicated exemptions. Everyone is charged the same, but businesses take the VAT they've paid off their VAT bill.

 

And that's why it's a pain not having the VAT number if GS invoices, because it's the proof that GS have paid VAT on your purchase so you can reclaim it.

 

Possibly the most boring post ever on this forum

Edited January 25, 2020 by BethDaddyKaty

[+on4bam]

30 minutes ago, BethDaddyKaty said:

Firstly here everything is at standard rates across the EU, 0% for things like most groceries, kids clothes etc.

 

Groceries here are at 6%

Then there's another rate of 12%

Many things are at 21% like electricity (luxury, you say?)

The only 0% rate I know of are newspapers/magazines, on paper, digital is 21%

Fortunately the high taxes also get us free education, almost free healthcare, and very good social security when falling ill or losing your job.

 

[+HunterandSamuel]

40 minutes ago, BethDaddyKaty said:

VAT here and sales tax in the US are different.

 

Firstly here everything is at standard rates across the EU, 0% for things like most groceries, kids clothes etc.

 

5% for things like electric.

 

Circa 20% for "luxuries" including GCing memberships

 

There are no further local taxes and unless you're surviving on GCing memberships and chocolate (not that it's my place to criticise) the tax you pay across everything will be much less as most of what you buy will be zero rated.

 

In the US every time a product is retailed you pay sales tax.

 

 

Not a boring post at all! Very informative! Thanks for taking the time to write it. Here in the U.S. everything is taxed, tax on top of tax (hidden taxes). 

[+BethDaddyKaty]

33 minutes ago, on4bam said:

 

Groceries here are at 6%

Then there's another rate of 12%

Many things are at 21% like electricity (luxury, you say?)

The only 0% rate I know of are newspapers/magazines, on paper, digital is 21%

Fortunately the high taxes also get us free education, almost free healthcare, and very good social security when falling ill or losing your job.

 

Yep, I should have said EU countries have the option to raise VAT, they just can't lower it below EU minimums.

 

But the principle remains the same, producers reclaim it at each stage so they only pay tax on the value (if any) they add, e.g. a fixed tax on gross profits.

 

E.g. most supermarkets work on about 30% gross margin. So they will only pay 6% tax on that 30%, e.g. 2% marginal tax of the sale to them.

 

[Keystone]

This is the "Getting Started" forum.  The question was answered in the fifth post.

 

If folks want to have a discussion about tax policy, we have an Off Topic forum for that.

 

I'm closing this thread and throwing a yellow card about staying on-topic.