Im being charged sales tax on digital goods when I live in a state that does not charge ...

Drews2Nutz · Nov 23, 2016

My billing address is in MA which is a state that is exempted from digital taxation. I brought this up over a month ago when I was charge tax on Fallout 4. I have chatted with a rep, sent emails and got one response apologizing but nothing was ever done.
I have bought 3 games in the last month and charged tax on all of them but not on the movie I rented. Why am I being charged tax on Xbox digital items and why is it not 6.25% like the state tax is, it is 6.2-6.3%? Do not tell me it is my area or whatever
because Sony does not charge me tax on my PS4.

11/23/2016- Forza Horizon 3 Standard Edition- $41.42 was $38.99 a 6.2323% tax

10/18/2016- Fallout 4- $31.87 was $30 a 6.2333% tax

10/18/2016-Forza Horizon 3 Treasure Map (Forza Horizon 3)- $3.18 was $2.99 a 6.3544% tax

:)

Closingracer · Nov 23, 2016

Xbox Store Tax ? Why

Why does the Xbox online store charge tax for the digital games? I was pleasantly surprised when I purchased The Last Of Us from the PSN store and found out that Sony doe NOT charge tax on digital purchases from it's store. So why does MicrosoftClick to expand...
Click to expand...

Sony charges Sales tax on PSN. You just don't get charged where you live.

burnone71 · Nov 23, 2016

Sales Tax

Hello, i currently live in the state of Massachusetts with a billing address also in the state of Massachusetts. I recently purchased a copy of the Fallout 4 season pass with a price of $49.99, or at least this was what i thought. Massachusetts has a sales
tax of 6.25% bringing the price up to $53.12 but there is no sales tax on digital goods within the state of Massachusetts as digital goods are defined as intangible and therefore nontaxable, also other services i used such as iTunes and Steam both do not charge
me sales tax. I am curious as to why this tax was charged, and if it was perhaps an error.

Odball69 · Jun 28, 2017

I talked to a rep last night and was told "it's a federal tax." Well guess what, there is no federal sales tax. Sales tax is a state/local thing and my state only charges for movies, music, and audio books. They specifically exclude video games that are
sold digitally.

OndoyBahista · Oct 31, 2018

Only five states do not have a sales tax:

Alaska

Delaware

Montana

New Hampshire

Oregon

OndoyBahista

Only five states do not have a sales tax:

Alaska

Delaware

Montana

New Hampshire

Oregon

Odball69

I talked to a rep last night and was told "it's a federal tax." Well guess what, there is no federal sales tax. Sales tax is a state/local thing and my state only charges for movies, music, and audio books. They specifically exclude video games that are
sold digitally.

SparkStormrider

[quote user="Bluntman1138"]

[quote user="gooserider71"]

So ever since the conversion from MS points to actual currency, I have been charged with tax. While for many people, this is not an unusual occurrence, I live in a state which has no sales tax. Why am I being taxed?

[/quote]

Just because your state doesnt charge a sales tax, the Federal Government does.

[/quote]There is no federal sales tax.

Bluntman1138

[quote user="gooserider71"]

So ever since the conversion from MS points to actual currency, I have been charged with tax. While for many people, this is not an unusual occurrence, I live in a state which has no sales tax. Why am I being taxed?

[/quote]

Just because your state doesnt charge a sales tax, the Federal Government does.

Reeve9

I have a feeling this has been going on a LONG time and we're fed up with it. We are in a state that charges sales but, but all online digital sales are exempt. MANY states are like this, not just the ones without any sales tax.

Here's a post I made in another thread...

Anyway, I'm not sure how long this has been going on, I'll check with the State Attorney's Office tomorrow, but Xbox apparently is charging sales tax for digital goods with North Dakota residents. We've been using Playstation for a decade and this
issue never came up. The really funny part, well not so funny, is that when contacting the Microsoft Store billing/support they knew full well that ND is a tax-exempt state and have never charged residents tax on digital goods from their online stores. WHY
in the world would Xbox not know this? Unreal. Well, we're contacting the ND State Attorney's Office tomorrow to find out where all those funds have gone.

Im being charged sales tax on digital goods when I live in a state that does not charge ...