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Thread: Tax now added to Itunes purchases?

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    Kirby (Level 13) Buyatari's Avatar
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    Default Tax now added to Itunes purchases?

    I purchased a game for $9.99 on my iPad
    Then get the email reciept.

    In-App Purchase $9.99

    Subtotal: $9.99
    Tax: $0.80

    Order Total: $10.79

    When did this start?

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    Must be an American thing as here in the UK there is no tax on itunes. Well nothing on the reciepts that i get sent.

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    Some US states have taxes on digital transactions. Your location says Cleveland, so I'm guessin you're in Ohio - it approved a new tax law that added taxes on digital sales.

    http://blog.barnesdennig.com/2013/07...igned-into-law
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    These digital download interstate tax laws should not even be legal. I'm not anti-tax or anything but the state did not do anything to earn that tax. If the servers are in another state and the business has no nexus in the taxing state then I see no reason to have to pay a tax to the state. I can see a valid case if the server or business was in the state doing the taxing but not the other way around.
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    If there's any way the government figures they can get in on taking money out of your pocket, they will. The last few years my home state of Minnesota has been trying to figure out ways to tax just about everything. This state sucks.
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    I'm almost sure that I've always paid tax on iTunes purchases here in Texas.

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    Quote Originally Posted by Kitsune Sniper View Post
    Ohio - it approved a new tax law that added taxes on digital sales.

    http://blog.barnesdennig.com/2013/07...igned-into-law
    Ugh... I live in Ohio. Of course this state's government would do something like this. :/

    These digital download interstate tax laws should not even be legal. I'm not anti-tax or anything but the state did not do anything to earn that tax. If the servers are in another state and the business has no nexus in the taxing state then I see no reason to have to pay a tax to the state. I can see a valid case if the server or business was in the state doing the taxing but not the other way around.
    Yeah, same here. That's why I thought digital goods would never be taxed. I was unaware that they were already doing it since I don't buy many digital things.

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    No tax on iTunes purchases in CA.

    We get charged tax on stuff on Amazon etc, so there is some kind of 'difference'. Maybe it's because it's digital. Don't know honestly.
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    I never bought anything on iTunes until this past Christmas and thought that everybody got hit with sales tax, interesting to hear about it being different state by state.

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    Quote Originally Posted by PapaStu View Post
    No tax on iTunes purchases in CA.

    We get charged tax on stuff on Amazon etc, so there is some kind of 'difference'. Maybe it's because it's digital. Don't know honestly.
    California's all sorts of wacky when it comes to taxes. I don't think other states know this, but we get charged additional taxes -on top of the sales tax- for buying most sorts of electronics because they contain cancer-producing chemicals. Then again, every restaurant has the same "STUFF IN HERE MAY CAUSE CANCER" warnings.

    I too do not get charged sales tax when purchasing digital stuff like games at Amazon (CA mailing address) but everything else? Tax.
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