I was just charged tax on my x box ultimate gift card of 54.99 why is that

Hi Tyler G, my name is Daniel and I would be happy to help.

The system is not to blame. Every time you purchase prepaid cards, gift cards, etc. At retail, you should not be charged any tax. If you were charged, I would recommend taking your receipt to the store to receive a refund of the tax charged on the gift card.

Information source (Credits): https://answers.microsoft.com/thread/ddce0c34-66cc-4b0b-b71c-c13ecdef9757

I hope this information has been useful to you.

Best regards,
Daniel.

I was just taxed twice by buying the Destiny Expansion Pass thru GameStop. The GameStop website, and the emailed invoice, said I purchased a download code; $35.00 plus tax. However, when I redeemed the code, I was credited only $35.00, and when I purchased
the Pass I was charged $34.99 plus tax. So, after being in contact with both GameStop and Microsoft, it seems GameStop was only selling a gift card for the amount that would cover the Destiny Expansion Pass purchase; not a direct download code. So is this
legal to charge tax on the Live Currency (a gift card)? And as the Microsoft Support suggested why would you ever buy a gift card or Live Currency (especially from GameStop), when you should just purchase everything via the Market Place?

I was just taxed twice by buying the Destiny Expansion Pass thru GameStop. The GameStop website, and the emailed invoice, said I purchased a download code; $35.00 plus tax. However, when I redeemed the code, I was credited only $35.00, and when I purchased
the Pass I was charged $34.99 plus tax. So, after being in contact with both GameStop and Microsoft, it seems GameStop was only selling a gift card for the amount that would cover the Destiny Expansion Pass purchase; not a direct download code. So is this
legal to charge tax on the Live Currency (a gift card)? And as the Microsoft Support suggested why would you ever buy a gift card or Live Currency (especially from GameStop), when you should just purchase everything via the Market Place?

Juandogs,

The system is not at fault. Any time you buy pre-paid cards, gift cards, etc. from retailers, you should not be getting charged a tax. If you were charged I would recommend taking your receipt back to the store to receive a refund on the tax charged for
the gift card.

The only reason I want to dispute the charge is because I had used a Xbox Ultimate gift card moments later. On top of this, the charge never changed the due date for my ultimate(until after using the Xbox Gift Card)