Steam will most likely raise prices in Europe on the 1/1/2015

The new European Union legislation takes effect in January 2015.

It is forcing online services like Steam, Origin, Uplay, Netflix, Spotify (which is simply amazing!), Amazon and others to pay taxes to the country where the user buys the product or service from instead of where the company is.

European Union flag

Valve has their European headquarters in Luxemburg where the taxes are 3% or even lower due to a tax agreement (for more info check out Luxleaks), now from January 2015 if you try to buy something from lets say Denmark then Valve will need to pay 25% tax, which gives them a lower profit margin and thereby a reason to set higher pricing even when EU1 is around 25% more expensive than US.

Due to the difference of the tax amounts in different countries this might also force Valve to do more regions, where maybe some of them are only populated by 1 country, this might also make them add several other currencies they don’t use at the moment.

The following services seem to be confirmed to raise their pricing:

  • Amazon
  • Netflix
  • Apple App Store

Source: reddit/r/steam


3 responses to “Steam will most likely raise prices in Europe on the 1/1/2015”

  1. onetoriginal Avatar

    Tax is 27% in Hungary, If anyone gets own region I guess we will. If they do so make it in our currency which is not EUR but HUF. More awesome news each day.

  2. theleocrow Avatar

    So, is that the reason for the region locking?

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