Xbox One Games Tax Free?

[jkidd01]

I'm not sure if it's on purpose or not (I'm assuming it isn't). But when I buy games digitally on 360, it charges me sales tax, but on Xbox One, no sales tax.

Since it says "you will be charged applicable taxes" I'm going to assume this is a glitch and buy any game I want now rather than later to save a few bucks.

 

[Coreldan]

Are you sure it's not just baked into the price? Around here basically no price is ever excluding taxes.

Are the games cheaper than "they're supposed to be?"

 

[jkidd01]

Are you sure it's not just baked into the price? Around here basically no price is ever excluding taxes.

Are the games cheaper than "they're supposed to be?"

Positive. If you buy any of these games in stores at full price you'd pay $63.59 instead of $59.99 which is what I bought them for from the Xbox Store. Essentially making the games cheaper by the amount of tax. Here it's 6%, but other places in the US have as high as 8-9% sales tax. It's still not as cheap as getting them for $10 off at walmart though, but it's something.

 

[Muessig]

Thank your stars you're not in the UK - we have 20% Value Added Tax here.

 

[Coreldan]

Thank your stars you're not in the UK - we have 20% Value Added Tax here.

I think here in Finland we have like.. 22 or 24% for products like games etc.. However I don't really complain about taxes, we have free education (all the way up to universities), pretty much free health care etc. Those things don't come for free

 

[jkidd01]

20% or more? And they call it "Value added tax"? Do you guys still pay income taxes too?

 

[Coreldan]

20% or more? And they call it "Value added tax"? Do you guys still pay income taxes too?

Yes we do, quite heavily on that too.

That's why everything is so expensive around here, but I personally have no regrets over it or anything. As said, our education system is pretty much superior to anywhere else in the world and on top of that it's free Same goes for many things that people in other countries pay crapton for.

 

[Keith Wallace]

All I'm going to say is that's why I want nothing to do with Europe. That's insane. I think the tax rate here's about 8.75%.

 

[coip]

Has anyone else confirmed that digital games purchased through the Xbox One digital store are tax free? I doubt that will last for long, but it could temporarily compensate for the fact that disc-based games are cheaper.

 

[DavidinCT]

I ordered 2 games digitaly and I was charged tax on both of them.... Here is one example...

Purchase Date
Sunday, November 24, 2013

Total before Tax: $59.99
Tax: $0.41
-----
Total for this order: $60.40

Item(s)
Ryse: Son of Rome
Price: $59.99
Quantity: 1


It makes buying the games for $10-15 off on ebay more attractive.... I had a Microsoft credit on my xbox that I used for this...

 

[tk-093]

Yes we do, quite heavily on that too.

That's why everything is so expensive around here, but I personally have no regrets over it or anything. As said, our education system is pretty much superior to anywhere else in the world and on top of that it's free Same goes for many things that people in other countries pay crapton for.

I personally would rather keep more of my money and spend it on what I need. Personally I'd be mad if I'd been paying my whole life for free healthcare I've never needed.

However, it's your country and if you like it that way, then that's cool. I enjoy learning about how different folks do things.

I'm not here to judge, just to play games.

p.s. My way is better. :wink:

 

[coip]

I ordered 2 games digitaly and I was charged tax on both of them.... Here is one example...

Purchase Date
Sunday, November 24, 2013

Total before Tax: $59.99
Tax: $0.41
-----
Total for this order: $60.40

Item(s)
Ryse: Son of Rome
Price: $59.99
Quantity: 1


It makes buying the games for $10-15 off on ebay more attractive.... I had a Microsoft credit on my xbox that I used for this...

Tax was only 41 cents!? That's super cheap.

 

[jkidd01]

Here are 2 of my xbox one games orders....

Interestingly enough, my most recent app purchase was also tax free (got Moliplayer Pro on my WP).

Dear John Kidd Jr,

This mail is a confirmation that you have purchased the following items from Microsoft:
Purchase Date
Friday, November 22, 2013

Total before Tax: $89.99
Tax: $0.00
-----
Total for this order: $89.99

Item(s)
DR3: Day One Premium Edition
Price: $89.99
Quantity: 1

Dear John Kidd Jr,

This mail is a confirmation that you have purchased the following items from Microsoft:
Purchase Date
Friday, November 29, 2013

Total before Tax: $59.99
Tax: $0.00
-----
Total for this order: $59.99

Item(s)
Battlefield 4[SUP]TM[/SUP]
Price: $59.99
Quantity: 1

You will be billed by your following payment method:
Microsoft Account

 

[AR2186]

Just looked up my CoD purchase. Kind of crazy as I'm in NYC (~10% tax) and they only charged me $0.60, or 1%. On my XB1 it said no sales tax would be charged

 

[Keith Wallace]

Sales tax on digital purchases varies by state, I'm pretty sure. Someone said elsewhere that it's only where a business has physical warehouses or something, but I'm not sure if that's right or if it applies here. It might just be a state-by-state implementation, depending on where you live. I am charged about $0.06 per $1.00 I spend on apps, but I don't buy games on my Xbox digitally (got some with Microsoft Points YEARS ago), so I don't know if that's affected.

 

[coip]

I always get charged about 8? on the dollar whenever I buy something digitally from Microsoft.

 

[jkidd01]

Sales tax on digital purchases varies by state, I'm pretty sure. Someone said elsewhere that it's only where a business has physical warehouses or something, but I'm not sure if that's right or if it applies here. It might just be a state-by-state implementation, depending on where you live. I am charged about $0.06 per $1.00 I spend on apps, but I don't buy games on my Xbox digitally (got some with Microsoft Points YEARS ago), so I don't know if that's affected.

At least here in Michigan, we have 6% on all goods except grocery, no matter where you buy it. Normally when I buy stuff from the Windows Phone Marketplace or my 360 I get charged 6% like normal. It's only since I got the Xbox One that I've been getting everything tax free.

 

[AR2186]

Sales tax on digital purchases varies by state, I'm pretty sure. Someone said elsewhere that it's only where a business has physical warehouses or something, but I'm not sure if that's right or if it applies here. It might just be a state-by-state implementation, depending on where you live. I am charged about $0.06 per $1.00 I spend on apps, but I don't buy games on my Xbox digitally (got some with Microsoft Points YEARS ago), so I don't know if that's affected.

You may be on to something here. If you pay with (what were) Microsoft points, you have already paid sales tax on that transaction (so no sales tax would apply). If you don't have the converted points, you pay sales tax.

As far as the ability to collect taxes is concerned, it has to do with taxing out of state businesses for sales that occur out of state (you can't do that). In that scenario, it is supposed to be the responsibility of the buyer to pay taxes (which means it's tax free). Where the companies get in trouble is of they have physical operations in the state, and the state can go after them. A lot of companies have challenged the laws, but for the most part they have been tossed out of court

 

[DavidinCT]

You may be on to something here. If you pay with (what were) Microsoft points, you have already paid sales tax on that transaction (so no sales tax would apply). If you don't have the converted points, you pay sales tax.

Incorrect in my eyes at least, in my example above that I picked up Ryse, I paid tax on it and I paid with Microsoft points (with some converted and some added), NO CASH OR CC.

It has something to do with your state, I looked this up. There is a Microsoft Store in CT, so I have to pay taxes but, if your in a state where Microsoft does not reside (Microsoft store, Microsoft sales, service, support, etc), then they dont have to charge you taxes on it. The crappy thing, do you have to pay taxes when you buy a Microsoft points card ?

I know some states are trying to change that but, no luck so far and so great for us

 

[jkidd01]

Incorrect in my eyes at least, in my example above that I picked up Ryse, I paid tax on it and I paid with Microsoft points (with some converted and some added), NO CASH OR CC.

It has something to do with your state, I looked this up. There is a Microsoft Store in CT, so I have to pay taxes but, if your in a state where Microsoft does not reside (Microsoft store, Microsoft sales, service, support, etc), then they dont have to charge you taxes on it. The crappy thing, do you have to pay taxes when you buy a Microsoft points card ?

I know some states are trying to change that but, no luck so far and so great for us

I think it's just a glitch in their system. Because there is a Microsoft Store in Michigan. Also, I was charged tax on games and apps purchases until around 10/23 no matter how I paid for them.