- Thu Mar 08, 2012 4:35 pm
#82140
It makes no difference who pays the tax.
For example:
Mr X sells Mr Y an enchated pick for 12,000, the agreed price between the two of them. Mr Y pays 12,000 (the agreed price) but Mr X recieved 12,000 - 1,200 = 10,800. So the tax is payed by Mr X, as Mr X loses out on the 1,200 from the agreed price due to the 10% tax.
But then later on.
Mr Y then decide he doesn't want the pick anymore and sells it for 12,000 to Mr Z, so Mr Z pays 12,000, but Mr Y only recieves 10,800 like in the previous trade, so in this case Mr Y pays the tax as he loses out on the 1,200 tax, but this time Mr Z pays the agreed price.
(in this example Mr Y does lose out on 1,200 due to reselling the item for the same price, but if Mr Y were to sell other items bread, diamonds whatever then it all would balance out)
So as the tax is set to 10% and it doesn't fluctuate, it doesn't matter who pays the tax. As it all balances out in the end.
So my point is if I didn't make it very clear, if you are selling you pay the tax but when it comes to buying you dont pay the tax, granted you get less than the price agreed upon but thats the whole point of tax. Problems will start arrising if everyone has to work out what the price is before tax.
That is an easy example:
For example, lets say two people agree at a price of 18,000 for a realm, that means that the buyer has to pay 20,000 to cover the tax of 2,000.
Bit harder example:
Say someone agrees a price of 12,500 for X item then you would have to pay 13,888 to counter the tax so it is just easier to agree a before tax price.
It could end up being quite complicated if everyone has to calculate what the value of something is before the tax comes off.
This now leads on to me thinking that a rule should be made "LAW", the agreed price in a trade is before tax, to stop any problems in the future.
