Why is there no tax when you buy digital copy?

[bautistabomb]

Just bought the digital copy of MLB 14. I was shocked that I didn't have to pay tax. Final price was $59.99. If I were to go and buy at a store I would pay 13% tax here in Ontario. I could have sworn that I have bought games before on the PS store and I used to pay tax. Is this a glitch? Oh well saved myself almost $8.

[zomgerd]

Re: Why is there no tax when you buy digital copy?

I don't know if that's a glitch but I have never had to pay tax for a digital copy of any games. I'm a primarily a PC gamer so I'm use to no tax for buying games (Digital Distribution on PC is pretty much the way to go since most everything is connected to Steam, Origin, or Uplay anyway) but I did recently purchase a game on PS Store and paid no tax. If they use to have them they probably don't anymore, would make sense unless your country has a law in place for Internet taxation like the UK (maybe some other regions in the EU but I'm not sure.)

[grgmths1433]

Re: Why is there no tax when you buy digital copy?

No glitch. I don't know why tho. All so Sony counts 59.99 as 60.00. I paid for the game couple of weeks ago a promotion was going on, spend 60.00 receive 10 PSN credit.

[CaseIH]

Re: Why is there no tax when you buy digital copy?

Just bought the digital copy of MLB 14. I was shocked that I didn't have to pay tax. Final price was $59.99. If I were to go and buy at a store I would pay 13% tax here in Ontario. I could have sworn that I have bought games before on the PS store and I used to pay tax. Is this a glitch? Oh well saved myself almost $8.

I wondered that too, I am here in the US and thought it was odd there was no tax. Now if I just figure out how to download it then i saved myself some money by doing the digital version.

[m1ke_nyc]

Re: Why is there no tax when you buy digital copy?

Its because the service technically isnt operated in your state, so you dont have to pay a sales tax on the purchase. But the government has been pushing to tax online shoppers, its started with Amazon.

[CaseIH]

Re: Why is there no tax when you buy digital copy?

Its because the service technically isnt operated in your state, so you dont have to pay a sales tax on the purchase. But the government has been pushing to tax online shoppers, its started with Amazon.

That explains it. You can bet our government will find a way to tax it no doubt about that

[Curahee]

Re: Why is there no tax when you buy digital copy?

But the government has been pushing to tax online shoppers, its started with Amazon.

And IL. "Crook" County to be exact!

[KMRblue1027]

Re: Why is there no tax when you buy digital copy?

Because you paid taxes putting the money on your PSN wallet. You proactively paid them before deciding what you wanted to purchase.

[bautistabomb]

Re: Why is there no tax when you buy digital copy?

Because you paid taxes putting the money on your PSN wallet. You proactively paid them before deciding what you wanted to purchase.

I don't get it? How did I pay tax by putting money in my PSN wallet? I put in exactly $59.99 the amount of the game.

[KMRblue1027]

Re: Why is there no tax when you buy digital copy?

I don't get it? How did I pay tax by putting money in my PSN wallet? I put in exactly $59.99 the amount of the game.

Should be on your credit/debit card statement assuming you used a card. Unless your state/country had no sales tax. I just pick up the prepaid cards in the store personally because I don't trust Sony with my debit card info but w/e.

[CaseIH]

Re: Why is there no tax when you buy digital copy?

Should be on your credit/debit card statement assuming you used a card. Unless your state/country had no sales tax. I just pick up the prepaid cards in the store personally because I don't trust Sony with my debit card info but w/e.

Thats why I used my wife CC, cause my name aint on it and I dont believe in CC's and didnt want to take a chance with our debit card

[sethschroeder]

Re: Why is there no tax when you buy digital copy?

There is a lot of confusion most times with tax law around software licensing. While physical games are usually taxed those are looked at as tangible goods. Digital download software though is different in all states, some are tax free, some require a tax, and others are in between on how you purchase.

Missouri for instance is tax free for digital download.
Wisconsin requires you to pay tax, if the seller doesn't collect tax your supposed to pay it directly to the state at tax time.
Illinois if the seller is not within the state of Illinois requires you to likely pay just he state tax, if the seller is located in the state you have to pay your city and state tax.

In the end tax law really varies on where you buy, how you buy, what you buy (tech support subscriptions on purchases are usually tax free)

I work in the software licensing field for a living and work with corporations around the world.