Xbox charging sales tax in state with no sales tax

So I live in a state without sales tax and Microsoft has been billing me for sales tax for Xbox digital purchases. It went unnoticed since a total isn't displayed when making purchases and it seems like I never receive an email confirmation. I only noticed
when I saw the most recent charge. I contacted support and eventually got it sorted out, though it was a huge hassle getting someone to even understand what the issue was. Supposedly they've fixed my account, but I've received no real confirmation on that.

My real issue is that they only refunded me for tax during the last 30 days. They told me to contact my bank or the IRS to get back the rest, which neither would deal with incorrectly collected state sales taxes. I also don't know if or where they were remitted.
This has been ongoing for months or years. I don't really know since Microsoft doesn't provide full purchase history and they don't always send email confirmations. I responded to their email but of course they didn't bother to respond back. Besides the fact
that collecting sales tax and not remitting it is illegal, as I customer I am pretty angry and feel this situation is unresolved. It may only be something like $50 worth of tax, but it's the fact they were illegally collecting tax and basically told me SOL.

Does anyone have any recommendations on the next step?

:)

 

Do Xbox games on demand charge tax?

No, Amazon had to start charging sales tax. It was a law change for online retailers. Nothing to do with amazon being located in your state. I live in California, before the change they did not charge sales tax and now they do. There is no amazon warehouse here. My orders always ship from Las Vegas. Although this may be only for California law. I don't know if there are states still getting no tax on amazon.

Actually what the change was, is that before if online orders shipped from out of state you don't have to pay sales tax. But now you pay tax no matter where the order comes from.

And if you live in a state with no sales tax like Oregon, then I would imagine there will be no tax on the xbox store.

 

xbox live purchases now being taxed

[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.

 

Hey Pentev,

Thanks for reaching out, if you would like to view order history for the account in question check out this article:

"View your Microsoft Store order history".

I would also recommend
contacting support again for the questions about the orders mentioned outside the 30 day window.

I hope this helps, thanks again!