When were taxes added to digital content

JKG1989TFK-69268E35-03BD-4CDF-B3A3-AD16355956C1 · Sep 16, 2014

I recently purchased borderlands 2 ,ultra mini golf 3d , Tony hawk HD all 5 dollars when I went to check my email for the receipt they came out to 5.41 individually. I don't remember there being taxes before or I simply wasn't paying enough attention when
did this start?

:)

onyxishere · Sep 16, 2014

do xbox charge tax on geft card?

M3tal is correct. Unless you live in a country where VAT (Value Added Tax) is included in the price you must account for tax on all purchases. Sadly, when you purchase a gift card from a retailer you get charged twice for tax. Once at the store and then
again when you purchase a digital item. For this reason I tend to use a credit card or paypal for my purchases. This way I only pay tax once form my content.

EnenDaveyBoy · Sep 16, 2014

Disc vs. Download

@tohe tax is regional based, in the UK there is Tax on digital products.

As a business if you hit the VAT cap (sales tax cap) in any country your supposed to then pay that countries VAT, now since its digital you could argue that they purchased the item in the country the new tax exempt store would be.

Looks like Europe has already thought about it:

blog.etsy.com/.../european-union-value-added-tax-vatmoss

Smwutches · Sep 16, 2014

It started when points ended and Microsoft went to the currency system.

JKG1989TFK-69268E35-03BD-4CDF-B3A3-AD16355956C1 · Oct 31, 2018

OK thank you that makes sense I knew it was a bit more recent this change was added.

Smwutches

It started when points ended and Microsoft went to the currency system.

JKG1989TFK-69268E35-

OK thank you that makes sense I knew it was a bit more recent this change was added.

onyxishere

M3tal is correct. Unless you live in a country where VAT (Value Added Tax) is included in the price you must account for tax on all purchases. Sadly, when you purchase a gift card from a retailer you get charged twice for tax. Once at the store and then
again when you purchase a digital item. For this reason I tend to use a credit card or paypal for my purchases. This way I only pay tax once form my content.

EnenDaveyBoy

@tohe tax is regional based, in the UK there is Tax on digital products.

As a business if you hit the VAT cap (sales tax cap) in any country your supposed to then pay that countries VAT, now since its digital you could argue that they purchased the item in the country the new tax exempt store would be.

Looks like Europe has already thought about it:

blog.etsy.com/.../european-union-value-added-tax-vatmoss

Obsessive Power

Hi,

Adding countries for full Xbox Live support is actually quite complicated.

Microsoft have to set up operations in countries they want to do business in. Arrangements have be made for paying local taxes and abiding by other local laws and customs. Licensing is also an added complication.

When you purchase content on the system in supported regions, part of the cost isTax or VAT. These taxes are collected by the government of the country Live operates in. It would be illegal to sell content in unsupported regions as no tax would be paid.

When were taxes added to digital content