https://en.m.wikipedia.org/wiki/Value-added_tax Each time it passes a businesses hands the tax is cumulative. Meaning it snowballs and you end up with the final cost. If you don't like it, your fellow Brits have come up with some sort of IP hosting or whatever to set your Xbox here in the U.S. And purchase it at the $40 value. In this country that's tax evasion, best of luck to you