1. jkidd01's Avatar
    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.
    11-29-2013 03:48 PM
  2. Coreldan's Avatar
    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?"
    11-30-2013 11:22 AM
  3. jkidd01's Avatar
    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.
    11-30-2013 02:26 PM
  4. Muessig's Avatar
    Thank your stars you're not in the UK - we have 20% Value Added Tax here.
    12-01-2013 07:33 AM
  5. Coreldan's Avatar
    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 :D
    12-01-2013 08:46 AM
  6. jkidd01's Avatar
    20% or more? And they call it "Value added tax"? Do you guys still pay income taxes too?
    12-01-2013 12:59 PM
  7. Coreldan's Avatar
    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 :P Same goes for many things that people in other countries pay crapton for.
    Muessig and skoenig like this.
    12-01-2013 01:12 PM
  8. Keith Wallace's Avatar
    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%.
    12-01-2013 02:55 PM
  9. coip's Avatar
    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.
    12-02-2013 08:13 PM
  10. DavidinCT's Avatar
    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...
    12-03-2013 02:01 PM
  11. tk-093's Avatar
    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 :P 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.
    12-03-2013 04:36 PM
  12. coip's Avatar
    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.
    12-03-2013 07:09 PM
  13. jkidd01's Avatar
    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 4TM
    Price: $59.99
    Quantity: 1

    You will be billed by your following payment method:
    Microsoft Account
    12-03-2013 08:00 PM
  14. AR2186's Avatar
    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
    12-03-2013 08:52 PM
  15. Keith Wallace's Avatar
    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.
    12-03-2013 09:28 PM
  16. coip's Avatar
    I always get charged about 8 on the dollar whenever I buy something digitally from Microsoft.
    12-03-2013 10:32 PM
  17. jkidd01's Avatar
    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.
    12-03-2013 11:12 PM
  18. AR2186's Avatar
    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
    12-04-2013 11:18 AM
  19. DavidinCT's Avatar
    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 :)
    12-04-2013 03:41 PM
  20. jkidd01's Avatar
    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.
    12-04-2013 03:53 PM
  21. coip's Avatar
    Well, I finally bought a game (Killer Instinct) and to my surprise also found that I was not charged tax:
    This mail is a confirmation that you have purchased the following items from Microsoft:
    Purchase Date
    Thursday, December 12, 2013
    Total before Tax: $19.99
    Tax: $0.00
    -----
    Total for this order: $19.99
    Item(s)
    Killer Instinct: Combo Breaker Add-On
    Price: $19.99
    Quantity: 1
    12-12-2013 02:26 AM

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