Xbox account keeps billing tax from a state where I don't live

TheAntiDuck · May 28, 2020

I reside in a state (Montana) where there is no sales tax. Every time I make a purchase (I use PayPal, which draws from my Montana-based bank account and debit/credit cards) from the Xbox Store online or through my Xbox, I get billed for sales tax. I looked
in my account and there was an old Minnesota address associated with the account from when I lived in Minnesota in college over a decade ago. So I updated my preferred billing address to my Montana billing address and figured that would solve the problem moving
forward.

But I keep getting charged the Minnesota sales tax. Today I got the bill for my monthly Gamepass Ultimate subscription and it includes tax. This is frustrating because I've never had any kind of bank or card account associated with Minnesota and I certainly
never would have authorized Microsoft to use my old Minnesota address for billing purposes. The only reason they even have it is probably because Xbox had to ship me a new Xbox 360 under warranty when I got the red ring of death way back in 2008-2009.

I have attempted to get help from customer service. Customer service has been useless. The online chat guy said I needed to provide documentation of tax exempt status to Microsoft. Which is absurd and insulting. I am not "exempt" from sales tax. I live in,
and am making these purchases for use in, a state where there is no sales tax, period. The phone chat guy didn't even understand my problem.

Any help with how I can get through to Microsoft/Xbox and actually get this problem addressed is greatly appreciated.

:)

choppyseize

Hello

It may be worth mentioning that there will still be surcharges no matter where you live in America when it comes to subscriptions. You're not being billed by Montana you're being billed by head office. Physical items are different of course.

It may also be worth checking to see if your new address is also entered on the credit card side of things under billing.

Albert X

I personally had the same issue and I was only able to get it resolved by contacting support via chat or y requesting a call back. Please use the following link: https://support.xbox.com/

Klokkwork

I live in a state without sales tax. Even after the conversion, I'm not paying any kind of tax on the purchases or memberships. If you live in a state without any sales tax, and you've been taxed on your purchase, you may need to make sure your account
has accurate information. Go to Settings --> Account --> Billing Information. Make sure you've got the right address there. Also, if the credit card you're using is billed to an address where sales tax is the norm, this may also impact its behavior when
using it for your Xbox account.

ThisGameIsSucky

You most likely need enough to cover tax where applicable. In the United States it can either vary by state or in some states that don't have sales tax its a set price for tax per dollar. I believe this translates to international regions as well, most countries
have a set number for Ecommerce tax. So you'll most likely need anywhere from $2 to probably $3. Keep in mind, in order to purchase a subscription in most cases you need a valid billing account tied to your account as well... even if you are paying with gift
cards.

Here's a little wiki article about internet tax that may help for further reading.

https://en.wikipedia.org/wiki/Internet_tax

Smwutches

Tax would depend on your state. In my state I don't pay taxes on gift cards, but if I were to buy directly from Xbox with a credit card or PayPal, I'd have to pay taxes. If you live in a state that does not have a sales tax, you would not pay taxes.

Xbox account keeps billing tax from a state where I don't live