Orbx Price Increase - Round 2

[Mooboog]

Since my previous post was deleted, without reason or explanation... It was in response to this post, which is closed. https://orbxsystems.com/forum/topic/207218-Orbx-price-dramatic-increase/

 

The store is displaying an increase in price on products to what I have viewed previously. Items I have purchased show an increase of an amount that equates to GST, which is fine.

 

However, all my receipts leading up to this point have stated that GST is included in my purchase.

 

Example. I purchased Pago Pago a while back for $39.95 AUD.

https://prnt.sc/12coz0f

 

If I try purchase that now, it adds GST of $4 on top of that.

https://prnt.sc/12coy7s

 

The receipt in my original purchase says GST was included.

 

Is there an error in the store, in which case I won't be making purchases until it's corrected, or were we not charged GST prior to 01 May?

[Silviu]

Hello,

 

There is no price increase: Orbx has just started, as of today, to charge VAT.

 

Now, I won't discuss this (legal) decision, since they are forced to charge VAT, but, I would like to bring forward three points:

1. Customers will not pay all of a sudden with 19% more (European country).

2. Prepar3D is already an old platform, so it makes no sense to pay even higher prices for P3D addons.

3. MSFS 2020, in its premium package (which I own also), doesn't quite need addons, besides some study-level aircraft addons and some airports (after one exhausts the airports already included in the premium package) - especially for VFR flight, which is all about the surroundings, and not airports.

 

I won't argue whether this full VAT increase is correct or not, I will just say that maybe Orbx should rethink the prices for European customers.

[Mooboog]

I'm talking specifically about Australian Customers. The receipts specifically state that GST is already included for Australian customers for products purchased prior to today.

 

As of today, the prices have increased by the GST amount, meaning we are either getting charged with GST twice, they weren't charging GST previously despite saying so, or they have simply increased the base price of the product.

[samie11]

Not having charged GST previously would mean Orbx has been naughty 

[Silviu]

I am sure there is no base price increase, most probably Orbx will also confirm this.

 

I am not an Australian customer, yet all my previous receipts stated "The total price includes GST for Australian customers", but it was 0 AUD included.

[captainbluesky]

I was about to purchase Ayers Rock this weekend from Orbx and noticed today the price is now AUD $27.59 but was AUD $22.99 very recently.

 

Go to the original developer's website and it is £13.00, as per the following link or around AUD $23.00 at current exchange rates.

 

https://auscenes.com/collections/destinations/products/ayers-rock-yulara-yaye

 

Can Orbx reconsider charging the same as per above at least for Ayers Rock?

 

Just read the Orbx response earlier:

 

"There has not been a price increase on Orbx products nor the Partner products.

 

As of May 1st 2021, in compliance with international tax requirements for digital sales, all purchases made through OrbxDirect will incur local tax charges specific to the purchaser’s region at checkout where applicable."

 

 

[samie11]

At this stage I will not be buying anything until this is fixed

[John Dow]

6 minutes ago, samie11 said:

At this stage I will not be buying anything until this is fixed

 Where you live will depend on what tax rate you pay.  If you live in Australia, it's possible the Australian prices have been incorrectly increased because of the coding in the pricing software not allowing for the GST already being included, or it's possible that Orbx have decided to follow the pricing rules in the rest of the world and add any gov't taxes to the base price.

 

If you live anywhere else in the world it's your gov't setting the increased amount through taxation.

 

You'll have to wait and see.

[samie11]

48 minutes ago, John Dow said:

GST already being included, or it's possible that Orbx have decided to follow the pricing rules in the rest of the world and add any gov't taxes to the base price.

.

Orbx had already included GST since I can remember so they are now showing tax as an additional section so probably an IT error charging GST twice. The thing that was confusing me is if GST has always been included does that mean people buying products overseas haven’t been paying local taxes? 

[BradB]

My two cents , Orbx like any other company around the world sometimes have too raise prices . Too get talented staff 

you have too pay competitive salaries. Also federal , state and local taxes that Orbx have to pay are rising , largely because

of the pandemic. 

[Silviu]

7 minutes ago, samie11 said:

Orbx had already included GST since I can remember so they are now showing tax as an additional section so probably an IT error charging GST twice. The thing that was confusing me is if GST has always been included does that mean people buying products overseas haven’t been paying local taxes? 

 

Until now, yes, European customers didn't pay local taxes for Orbx products. This has changed now, unfortunately. I think it depends on the turnover, I still cannot understand why some sellers charge taxes and some do not charge. For example, I can go now and buy addons from Flightbeam without VAT charged on top of the order, whereas FlyTampa charges VAT: both of these sellers are headquartered in USA, the purchase is made directly from them, and not a EU subsidiary (like Steam, Apple, EA have in Europe). I don't have a problem paying VAT for a product sold by a EU company (FSLabs or Navigraph), my problem is paying VAT for a product sold directly by a USA / Australian seller (Flytampa /Orbx). I still think it relates to the turnover in that region, otherwise I see no explanation.

[caleb1]

It seems previously the Australian tax was included for Australian customers but now they are including the local tax of where the customer is located.

 

Wouldn't it be better instead of including it in the price just to have a tax calculation on checkout?  That way it does not seem that product prices are going up.

[samie11]

Either way for Australia customers Orbx just needs to clarify,

 

1, despite telling customers GST was included it in-fact wasn’t (which sounds kinda dodgy and tax fraudy to me so I doubt it’s this)

 

2, when they went to include taxes they forgot to remove the already included GST 10% tax hence now having double taxes applied. (Which would also mean the 10% applied gst tax is actually more like 11% because of the higher base price) 
 

3, Orbx did this knowingly as are pocketing my extra dollarydoos 

 

I can’t speak for other countries but given Orbx is Australian company and I am in Australia Orbx would have been required to declare GST tax when they had income above 75,000. Given Orbx made over 7 million with funding of 12 million or something like that last year they’ve been paying GST for a long long time. So the “base price” at which taxes have been added obviously is the price of already included GST which is why this screams dodgy to all the Australians.

 

Should taxes be added at checkout.... no. There’s a reason why consumers like to see the full price on store not at checkout. 
 

As Australia we shouldn’t be seeing any change in price at all if what Orbx has said is true hence the confusion.

[samie11]

Also say someone has just bought $200 worth of Orbx products today they may be in titled to some sort of refund or credit as they have been incorrectly charged $20 which is a considerable amount of money. 

[Nick Cooper]

Hello,

as none of us know the answers to these questions, it would be better to wait

for a further statement, rather than to indulge in speculation.

 

My personal experience, based in the UK, is that retailers such as

 

Aerosoft

 

and SimMarket

 

have been charging 20% VAT for some considerable time already and

they add the tax at the checkout.

 

Orbx Direct is now doing the same.

 

 

 

 

 

 

 

[porsche]

Are you collecting Canadian sales tax(s)? There is a wide variation on sales taxes within various provinces of Canada. Is his/will this...be factored in?

[Silviu]

Nick, regarding your example, there is quite a difference in that both Aerosoft and Simmarket are EU companies, therefore they must charge VAT from the customers, whereas Orbx is an Australian company, from outside of EU. What Orbx didn't do is that they didn't explain to the customers what has happened lately and why, all of a sudden, they have started to charge VAT. The VAT charging mechanism is not something new.

[Nick Cooper]

Hello,

thanks.

It's not an example.

As I wrote, it is my personal experience.

We will wait for any further comment I think.

Thanks to all who shared their opinions.

[Orbx]

Please see this: