Second Life Forums Archive - VAT as it effects the USA

Argus Collingwood

Totally Tintable

Join date: 5 Dec 2005

Posts: 600

09-29-2007 12:24

How much are the fees to change EUROs into USD to pay tier? I am aware that the USD has been taking a real beating on the currency exchange. i.e in May 2007 the rate of exchange was 1.36417USD to 1 EURO and at this last market close yesterday the rate was 1.4129 USD to 1 EURO.

Caroline Ra

Carpe Iugulum

Join date: 20 Dec 2006

Posts: 400

09-29-2007 12:28

From: Incanus Merlin

Well, speaking as a British island owner, I've pretty much decided to go with Twosteppin's option (b) and swallow the cost [shameless plug] I have about 7/8 vacancies on my 6 sims; if I could get them all rented concurrently that would help A LOT! [/shameless plug].

That said, it would be helpful if fellow Euros didn't move out of the VAT zone in hordes, or even looked at positively renting in a Euro sim.... but I couldn't blame anybody for looking to lower their costs. And maybe there's a rich Yankee out there I can fleec......er, welcome

Inc

Yep Im a UK estate owner and Im going to have to swallow it. Its taken 6 months to see a small profit, all of which has just been wiped out by the VAT hike. £25 profit a month on an estate that cost £800 outlay and £150 (now £175) a month fees. Just as well I enjoy being in SL nearly 24/7. And what pisses me off most is that many ppl think because you have an estate that you are raking it in hand over fist.

_____________________

The secret of life is honesty and fair dealing. If you can fake that, you've got it made.

Jarred Tammas

Registered Something

Join date: 25 Jul 2007

Posts: 87

09-29-2007 13:03

That VAT is a pain. The company I work for deals with the EU and have to charge the VAT on anything shipped over there. Either Linden Labs can charge the VAT or block access to SL in the EU. The 2nd option isn't likely to happen, so we need to feed the VAT demon.

_____________________

Jarred

Colette Meiji

Registered User

Join date: 25 Mar 2005

Posts: 15,556

09-29-2007 13:12

From: Rene Erlanger

Unfortunately i'm a Euro Sim owner that has had to raise its Tier and rental charges to its existing residents. Had no choice really, it would not make sense to hold onto these SIMs for such a small profit margin....otherwise it would be wiser to invest the 10k USD into something else less stressful for a similar return. (A UK 90-day savings a/c would probably yield a similar return if i absorbed the VAT costs)

However unlike Linden labs that has already caned 2 of my SIMs with additional VAT charges hours after informing via Email.......i won't be implementing the change until Dec 07, allowing existing residents around 2+ months to sell their lands should they find the increases unacceptable. On average i'm adding an $1 per 2048 sq/m plot.

I won't be buying any more SIMs or plots on Mainland......my next move is likely to be a sell off, should i end up with empty SIMs

Basically we can no longer compete on a level playing field. It's a sad day in Second life's
chapter and one that will have severe impact on it's growth.

I have to admire your professionalism even when LL showed none.

Good luck.

Hiro Queso

503less

Join date: 23 Feb 2005

Posts: 2,753

09-29-2007 13:59

I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk.

I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide.

1. They can buy the sim off of me outright.
2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons)
3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner.
4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded.

Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3.

Tiana Whitfield

Forever And A Day

Join date: 1 Apr 2007

Posts: 702

09-29-2007 14:15

From: Hiro Queso

I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk.

I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide.

1. They can buy the sim off of me outright.
2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons)
3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner.
4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded.

Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3.

Wow.. Your customer service speaks for itself by this post

I really hope it all goes well for you

_____________________

Rene Erlanger

Scuderia Shapes & Skins G

Join date: 28 Sep 2006

Posts: 2,008

09-29-2007 18:21

From: Hiro Queso

I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk.

I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide.

1. They can buy the sim off of me outright.
2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons)
3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner.
4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded.

Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3.

Yes, i have had 1 tenant who rents a whole SIM and willing to stay on despite the increase, which was surprising.....so I'm able to keep that SIM at least. I have several small plot owners across my other sims wanting to continue, so that is also pleasing.
Maybe the fact that i haven't just been their Estate owner but an approachable one and in some cases becoming friends is starting paying dividends in terms of loyalty......who knows!

VAT as it effects the USA
Argus Collingwood Totally Tintable Join date: 5 Dec 2005 Posts: 600	09-29-2007 12:24 How much are the fees to change EUROs into USD to pay tier? I am aware that the USD has been taking a real beating on the currency exchange. i.e in May 2007 the rate of exchange was 1.36417USD to 1 EURO and at this last market close yesterday the rate was 1.4129 USD to 1 EURO.
Caroline Ra Carpe Iugulum Join date: 20 Dec 2006 Posts: 400	09-29-2007 12:28 From: Incanus Merlin Well, speaking as a British island owner, I've pretty much decided to go with Twosteppin's option (b) and swallow the cost [shameless plug] I have about 7/8 vacancies on my 6 sims; if I could get them all rented concurrently that would help A LOT! [/shameless plug]. That said, it would be helpful if fellow Euros didn't move out of the VAT zone in hordes, or even looked at positively renting in a Euro sim.... but I couldn't blame anybody for looking to lower their costs. And maybe there's a rich Yankee out there I can fleec......er, welcome Inc Yep Im a UK estate owner and Im going to have to swallow it. Its taken 6 months to see a small profit, all of which has just been wiped out by the VAT hike. £25 profit a month on an estate that cost £800 outlay and £150 (now £175) a month fees. Just as well I enjoy being in SL nearly 24/7. And what pisses me off most is that many ppl think because you have an estate that you are raking it in hand over fist. _____________________ The secret of life is honesty and fair dealing. If you can fake that, you've got it made.
Jarred Tammas Registered Something Join date: 25 Jul 2007 Posts: 87	09-29-2007 13:03 That VAT is a pain. The company I work for deals with the EU and have to charge the VAT on anything shipped over there. Either Linden Labs can charge the VAT or block access to SL in the EU. The 2nd option isn't likely to happen, so we need to feed the VAT demon. _____________________ Jarred
Colette Meiji Registered User Join date: 25 Mar 2005 Posts: 15,556	09-29-2007 13:12 From: Rene Erlanger Unfortunately i'm a Euro Sim owner that has had to raise its Tier and rental charges to its existing residents. Had no choice really, it would not make sense to hold onto these SIMs for such a small profit margin....otherwise it would be wiser to invest the 10k USD into something else less stressful for a similar return. (A UK 90-day savings a/c would probably yield a similar return if i absorbed the VAT costs) However unlike Linden labs that has already caned 2 of my SIMs with additional VAT charges hours after informing via Email.......i won't be implementing the change until Dec 07, allowing existing residents around 2+ months to sell their lands should they find the increases unacceptable. On average i'm adding an $1 per 2048 sq/m plot. I won't be buying any more SIMs or plots on Mainland......my next move is likely to be a sell off, should i end up with empty SIMs Basically we can no longer compete on a level playing field. It's a sad day in Second life's chapter and one that will have severe impact on it's growth. I have to admire your professionalism even when LL showed none. Good luck.
Hiro Queso 503less Join date: 23 Feb 2005 Posts: 2,753	09-29-2007 13:59 I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk. I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide. 1. They can buy the sim off of me outright. 2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons) 3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner. 4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded. Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3.
Tiana Whitfield Forever And A Day Join date: 1 Apr 2007 Posts: 702	09-29-2007 14:15 From: Hiro Queso I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk. I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide. 1. They can buy the sim off of me outright. 2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons) 3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner. 4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded. Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3. Wow.. Your customer service speaks for itself by this post I really hope it all goes well for you _____________________
Rene Erlanger Scuderia Shapes & Skins G Join date: 28 Sep 2006 Posts: 2,008	09-29-2007 18:21 From: Hiro Queso I've had to throw in the proverbial towel too. What was once a mildly profitable hobby business is now a break even risk. I currently rent out 13 sims (whole) to residents, and it's just a shame how this affects them as a result. So, to try and make the transition as smooth as possible, I have given each of them the following four options, and 5 weeks in which to decide. 1. They can buy the sim off of me outright. 2. I can sell to another landlord/lady who is willing to continue to honour the agreement. (probably American/Canadian, for obvious reasons) 3. They can continue to rent from me at an increase of US$50 per month, though I hastened to point out they would almost certainly get a better deal from an american land owner. 4. They can leave as soon as they wish, and any rent remaining upon vacation will be refunded. Once I have answers from all the residents, I will try and find a buyer who is both willing to both pay a fair price and honour the current agreements for those who go for option 2 - a business sale, so to speak. Quite suprisingly, I have already had two people go for option 3. Yes, i have had 1 tenant who rents a whole SIM and willing to stay on despite the increase, which was surprising.....so I'm able to keep that SIM at least. I have several small plot owners across my other sims wanting to continue, so that is also pleasing. Maybe the fact that i haven't just been their Estate owner but an approachable one and in some cases becoming friends is starting paying dividends in terms of loyalty......who knows!

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VAT as it effects the USA