Hello. So I just redeemed a prepaid card and they asked me for my address and said it was for taxes. While I did give them my address, I'm a little confused. Will I be sent something in the mail further charging me or is it Kingsisle's taxes they're referring to? Thanks in advance.
Hello. So I just redeemed a prepaid card and they asked me for my address and said it was for taxes. While I did give them my address, I'm a little confused. Will I be sent something in the mail further charging me or is it Kingsisle's taxes they're referring to? Thanks in advance.
Yeah I was gifted the Fairytale bundle and got the same when I redeemed it but haven't on prize codes I've had in the past.
It may be because recently various countries have started enforcing taxation on companies providing online gaming services, previously a grey area for tax. To use the UK as an example VAT (value added tax) was not enforced on non-UK gaming companies but now they are demanding it. If KI doesn't charge me the VAT they can be charged for it directly from HMRC (Her Majesty's Revenues and Customs). Now countries are hitting game companies for taxation the game companies have to make sure they get it at source or face fines that could potentially ruin them.
They're not only known as 'pre-paid cards' they're also 'gift cards' or 'gift certificates' and I think this may be relevant. There is no additional tax due on a gift even if 'gift' isn't in the name itself. If a friend buys me an actual physical present from the US and sends it to me we won't get hit with VAT even though the item is going to be used and enjoyed in the UK, likewise when I send gifts to the USA. As individuals we're allowed to give presents.
I'm assuming it is something so KI can prove they're paying everything correctly rather than anything for us to worry about, possibly so they can see the locations of their wizards for marketing/expansion of the game. If I'm wrong I hope Sparck will clarify for us
"It may be because recently various countries have started enforcing taxation on companies providing online gaming services, previously a grey area for tax"
This is the reason. You won't be charged anything else, the taxes are on us as a cost we incur that we have to provide to x,y,z country.
