NOTICE: Cryptic Points will be converting to Zen soon
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Join Date: Jun 2012
06-24-2012, 07:38 AM
unfortunately i just lost my first reply.. so here is something to think about.
As I showed in my earlier post we seem to be paying between 14 and 15% TAX by paying in EURO against purchasing with USD directly. This is pretty much in line with EU legislation that minimum VAT for member states is 15%. The fluctuation is probably due to the fact that the USD to EUR conversion done by PWE in setting the 45 EUR price for 5000 zen is static while the actual EUR to GBP rate fluctuates (and has dropped 10% in the last year according to European Central Bank (ECB) (Source:
If we consider that the 45 EUR price is 39.13 EUR PLUS 5.87 EUR (15% VAT) then this gives the exchange rate used at the time as 50/39.13 = approximately 1.28 USD : 1 EUR
Bear in mind that the current actual conversion rate for USD : EUR is 1.25 USD : 1 EUR (and has dropped almost 13% over the past year as the EUR weakens against the dollar) (Source:
so if PWE were to recalculate the EUR price even annually then the current price should be 50/1.25 = 40 EUR plus 40 @ 15% VAT = 6 EUR so the cost now would be 46 EUR for 5000 zen. not a big change. BUT.
If they had done this the same time last year however, the rate was 1.44 USD : 1 EUR so 50/1.44 = 34.72 EUR plus 34.72 @ 15 % = 5.21 EUR so the cost for the last year should have been 39.93 EUR, call it 40 EUR for simplicity sake, a saving for european customers of 5 EUR per purchase.
Should PWE review the EUR cost at least annually? Damn right they should (I would prefer quarterly but annually is at least a start). Will they? I doubt it but perhaps PWEBranflakes can highlight this concern to the accounts department as while PWE made extra money last year from it's EU customers than it rightly should have, if the EUR continues to weaken against the dollar the company will start losing money to it's EU customers..
.. damn maybe we shouldnt do anything or euro zone folks and brits will be worse off?
Last edited by eiledon; 06-24-2012 at