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The UK Autumn Budget gets tough on tech companies and tax
During yesterday's Autumn statement, Chancellor Philip Hammond outlined positive measures to push the adoption of autonomous and electric cars, develop new 5G networks, treble the number of computer science teachers and further research into AI and robotics. But tucked away in the 88-page document were small changes that show the UK government plans to get a lot tougher on technology companies that aren't willing to give back as much as they should.
Amazon and eBay accused of turning blind eye to VAT fraud
It's not uncommon to see a headline vilifying a well-known tech company for their incredibly low tax contributions despite turnovers in the billions. The EU is famously taking Apple to task, but more often than not, these clockwork bouts of outrage are frustrating to endure. If these "loopholes" are built into the system, it would seem energy could be better spent lobbying for tax reform instead of telling the same story ad infinitum. But this isn't one of those stories. In a new report, the UK government's Public Accounts Committee has made some pretty strong allegations against Amazon, eBay and other unnamed online marketplaces, accusing them of facilitating VAT fraud.
Euro Star Citizen fans getting local support, VAT
Are you a Star Citizen fan based in Europe? If so I've got good news and bad news. The good news is that Cloud Imperium is opening a "publishing arm" in the UK and thus will provide local customer support. The bad news is that Euro customers will be subject to the VAT beginning on February 1st. "We wish there were an alternative to charging the tax, but also believe that it is in our best interest to expand Star Citizen's footprint to a part of the world that has proven to be truly passionate about space games," CIG explains on its website.
UK government closes tax loophole on digital media, could mean the end of the 99p song download
Buried within the latest budget plan for the UK, Chancellor George Osborne announced new laws that would ensure internet downloads from the likes of iTunes, Google Play Amazon and game networks would be taxed in the country they're bought in. In the case of the UK, that would be around 20 percent VAT, substantially more than selling through countries like Luxembourg where the rate can be around 3 percent. Separate to the government's grand plans for its digital future, the new rule would start January 1st 2015 -- "ensuring these are taxed fairly and helping to protect revenue." According to the government's estimates, it could net around £300 million in extra tax income, although it's likely to bring digital download pricing (unfortunately) closer to physical media in the process.
Model S goes on sale in China for $121K, but Tesla says it's leaving money on the table
About a year after announcing plans to open a retail location in China, Tesla is releasing its Model S sedan there. Coming in at 734,000 CNY or about $121,000 US, it carries a premium over the $81,070 US base price (without incentives), but Tesla believes it could've gone higher -- for comparison, the BMW 650 has an $87K MSRP in the US, but costs around $326,000 in China. Claiming competitors ratchet up their price tags to as much as twice the price just to increase profits, Tesla's math starts with the same initial price before adding "unavoidable" shipping & handling, taxes and VAT -- access to the Supercharger network it's building across China comes at no additional cost. Tesla says it's risking the possibility buyers view its price as a signal of lower quality, but it's committed to "doing the right thing." Whatever the reasoning, we're sure Chinese buyers who've laid down up to $40K for a Model S or Model X pre-order appreciate the restraint.
Norwegian bookseller begins selling e-books on memory cards, for some reason (video)
Literary changes may be afoot in Norway, where one bookstore is looking to drastically revamp the e-book medium. Last week, Norwegian retailer Norli Libris announced that it would begin selling books on small plastic memory cards that can be inserted into the backs of e-readers. Each card, known as the Digi Short, would contain a single file, allowing users to devour one publication at a time on their customized, Android 2.1-laced Kibano Digi Readers. Doesn't that sort of defeat the purpose of an e-reader? It certainly seems like it, though Norli Libris' Caroline Heitmann says the idea is to simply convert e-books into physical commodities, like their ancestors. Because of this, these one-hitters would be exempt from VAT duties within Norway, though Norli Libris says they'll likely be priced on par with their downloadable counterparts, which won't help the consumer much. The company hopes that this system will be adopted as an industry standard, though it's only available at Norli Libris for the moment. Head past the break for a rather obvious demo video.
UK government may close online shopping tax loophole
The gaming significance of the above headline may not seem apparent, but bear with us. This May, the UK government will consider "the continued marketing and use of highly aggressive and artificial tax avoidance schemes." As noted by VG247, businesses located in a certain part of Jersey (the UK one, not the one famous for GTL) are not required to include value added tax (VAT) in their prices. As such, many game sellers -- GAME, Amazon, Play, etc. -- base their businesses there, allowing them to sell games at lower prices than competitors (though only on items under £18). MCV reports that the consultation planned for May will likely see current countermeasures extended. Said countermeasures allow the government to "enable the listing of specific tax avoidance schemes for direct taxes so that the subsequent use of such schemes will carry consequences for the user." Within four years, the measures could earn the UK government as much as £4 billion. Of course, they would also have the added side effect of raising prices on certain games.
Apple's UK prices rise after VAT increase
Several European countries saw their online Apple stores go down for several hours earlier today, with the familiar yellow sticky note greeting customers in the UK, France, Spain, Portugal, Italy and others. Some speculated this meant a new product launch, but stores in Asia/Pacific and North America remained up all day. It turns out that in at least one country, the UK, something new did debut on the Apple Store today: higher prices. The increase in the UK's value-added tax (VAT) from 17.5 percent to 20 percent went into effect today, and Apple has raised its UK prices to account for the difference. In some cases the price rise is relatively modest. A 16 GB iPhone 4 now costs £11 more than it used to, while a 16 GB Wi-Fi iPad costs £10 more. However, MacBook Pro and iMac prices have increased by a minimum of £21, and a Mac Pro will now cost a minimum of £42 more. Some had expected Apple to eat the cost of the VAT increase and keep its UK prices the same, but a recent GST increase in New Zealand from 12.5 percent to 15 percent saw Apple raising its prices here, too. Though Apple will surely cite "margin preservation" in defense of raising its prices, Apple already charges more for its products in countries outside the US. While there may be economic reasons for doing so, that's hardly comforting to international customers. It's unclear why the other European stores had to be taken down for a UK price hike; if prices have also risen in your country today, let us know in the comments. [via Mac Rumors]
The Virtual Whirl: A brief history of Second Life, 2008-2010 and beyond
This week, we cover the final installment of our summarized history of Second Life and Linden Lab (check out the first installment or the second, if you missed them). It's only possible to cover a tiny fraction of the events that took place in the space we have here, but the highlights paint an interesting picture. We'll be working our way from 2008 to June 2010, and looking at what future directions we expect from there.
Ready Check: First look at Cataclysm raids
There's been a huge splash of Cataclysm information released unto the wild in the last few days. Every since the beta hit the streets, we've seen information about warrior changes, hunters and even racial emotes. I guess I called it a splash. What I really meant is that there's been a flood of information everywhere. It seems like we can virtually see anything we'd possibly want to know about the expansion, right now. But what we haven't seen yet is much information on raids. Our good friends over at MMO-Champion have some great information about 5-man instances, but their raid information is running a little behind so far. Of course, that's never kept us from drooling over new raid content before now, so let's not start bad habits. Let's take a look at what raid information we do have and spend a little time getting excited about the new expansion.
UK game retailers facing pricing challenge due to VAT increase
Last week, the UK Emergency Budget resulted in a proposed increase in the country's VAT (similar to a sales tax). When it goes into effect in January, the tax will increase by 2.5 percentage points. Game retailers are mulling over the possibility of absorbing the added the cost, instead of passing it to the consumer. According to MCV's report, "senior retail figures" are reluctant to increase the price of games above the now-standard £39.99 ceiling. Afraid that the increased VAT will lower sales, retailers must consider lowering their profit margins, by paying for the increased tax. Should that prove to be unsavory though, UK gamers can expect their games -- as the price of many other retail goods -- to increase in the new year.
Rockstar appealing British Manhunt 2 ban
Rockstar yesterday filed an appeal with the Video Appeals Committee (VAC) over Manhunt 2's rejection by the British Board of Film Classification (BBFC), according to MCV. The UK board can overturn the BBFC's ban; given that six weeks are permitted to file an appeal, the developer appears to have waited until the eleventh hour before making their dramatic request for a new decision.Following the BBFC's decision, the "Banhunt" spread globally, with an effective banning in the US due to a AO-rating from the ESRB and word that both Australia and Germany would very likely not allow the game sold withing their respective borders.What's unclear here is if Rockstar will appeal the decision with the current build, previously defended by the New York Times, Newsweek's N'Gai Croal and MTV News Stephen Totilo, or if they'll show off a "cleaner" version of the game.%Gallery-3533%
GDC 07: UK retailers didn't want the 20GB
Some UK residents have felt angered by Sony's pricing scheme in the PAL territories. At £425 (~$820 US), European users are paying quite a lot to get a chance to PLAY B3YOND. One reason for the price hike? The government-imposed VAT, which makes up for up to 20% of the cost. "The money doesn't go to Sony," Harrison reminded.While the availability of a 20GB model would have certainly alleviated some financial pressures on European buyers, it simply wasn't possible: retailers said they only wanted 60GB versions. Considering the numerous retail schemes that have popped up in Europe, color me unsurprised.
PS3 could debut in Europe for 500 euros, says SCEE exec
La PlayStation Trois! French gamers must be familiar with that combination by now, and if a certain Sony executive gets his way, the PS3 could be appearing in Europe for as low as 500 euros this fall.Apparently George Fornay (president of Sony Computer Entertainment France and vice president of Sony Computer Entertainment Europe) confirmed to Generation Europe 1, in French, that the PS3 could be priced around the 500 euro mark, most likely between 499 euros and 599 euros. For the unfiltered French audio, try the Play button near the middle of Europe 1's podcast page here.Such an estimated figure may include Europe's Value Added Tax (VAT), so the final price range in the States might well be lower than the current U.S. currency equivalent of roughly $600-$725 for those many euros. Of course, who's to say whether Mr. Fornay was simply speculating on a local podcast or whether he actually exhibited loose lips before the French press?[Thanks, Fan; also via Joystiq]
