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Sales Tax?

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When I bought donuts using a debit card I was charged tax, I am in OH. If I get an iTunes card as a gift, I'll find out if I am charged tax using it on donuts.

Replies

  • ubnashubnash
    73 posts Member
    edited December 2012
    Sales/Use Taxes are complicated and are based upon each state and country where EA/Apple does business. So unless EA provides a list of states and countries where sales/use taxes are collected on donut purchases it is hit or miss. However, I used to play Zynga games and here is their information on which states and countries collect sales/use tax for ingame purchases. However, their states/countries may not apply 100% to EA since each company has a different business model and locations where they have a physical presence, which may impact if a particular state's laws apply. But just as a reference, here is the information on which states/countries Zynga needs to collect (note that some states may collect the tax when a Gift Card is purchased, and others may only collect it when the purchase is made on iTunes -- also, note that for Zynga, the determination of when tax applies is based upon the location of the server that you connect to when making the purchase so if you are located in California which does not collect tax but connect to a server in Texas when you attempt to purchase the ingame currency you will get charged Texas taxes -- it is confusing, but this is how they determined location for tax collection -- Maybe Apple does a better job by using your address for iTunes. As I said, it really is complicated):

    "Many areas apply taxes to credit card, debit card or PayPal purchases. If your area applies taxes to your Zynga purchase, the price displayed on the purchase page will include any appropriate taxes for your area. Location is based on GeoIP - geographic location of an Internet-connected computer or mobile device, which is from where you may access the Internet. Applicable taxes will be included in the price at the time of purchase for European Union countries and the following U.S. States: Alabama, Arizona, Connecticut, D.C., Hawaii, Idaho, Kentucky, Louisiana, Nebraska, New Mexico, South Dakota, Texas, Utah, Vermont, Washington, Wisconsin, Wyoming and other states if applicable. VAT tax may be applicable to International purchases at 15% tax rate on all European Union sales, regardless of the country in which our user is based. If you have any questions or concerns in regards to this tax or the amount that will be added, please contact your state's or country's Department of Revenue."

  • A_Bad_Exampl3
    916 posts
    edited December 2012
    dcline414 wrote:
    I see a lot of people talking about sales tax on doughnut purchases, which has me somewhat confused and quite curious as to where people have to pay sales tax, how much they pay, and whether the iTunes gift card or the in-app purchase is taxed.

    I just bought a $50 iTunes card for $40.00 from Walmart and there was no tax or fee added on. I then used the $50.00 credit to buy $49.99 in doughnuts and still have $0.01 left over. So I definitely pay no federal/state/local tax on my purchases here in the state of Georgia.

    How much do others pay in taxes?

    I got charged tax when I bought donuts on my cc in October.

    I had credit in iTunes when the update came through and was not charged tax this time.

    I got the $50 card for $35 at Safeway. Plus $.20 per gallon off on gas. :wink:
  • rawmel3
    276 posts
    edited December 2012
    F** SALES TAX!
  • xrobotlove
    538 posts
    edited December 2012
    Yep my sales tax is 6%, and I do get taxed when I use iTunes gift cards. So a $10 gift card won't cover the $9.99, they end up asking you for your credit card for the remaining 54 cents. So I always have to use an extra gift card and I'll never have an even amount of iTunes credit.. Currently at $38.22, even though one more should have equalled $50, it instead will only be 48.22.
    So if you have a working credit card and there's sales tax in your area then use the CC for the extra change. Otherwise you'll end up in an endless loop of being $2 short.
  • zoephoto
    447 posts
    edited December 2012
    I got no sales tax buying the $40 walmart card, but then I got charged tax by itunes on the $50 gift card donut purchase, sales tax in WA is over 9% so it was almost $5!
  • lissarv68
    5588 posts Member
    edited December 2012
    Oddly enough, no sales tax here in Virginia. I say oddly because every other internet purchase I make gets taxed like crazy soon as I put in my state. I did the Walmart card. I think there is a different set of tax laws governing gift cards (here) because I never get charged tax for them.
  • MamabearPam
    46 posts
    edited December 2012
    I just got double taxed! The iTunes gift card was a gift from my son, who payed tax on the purchase, PLUS they charged me tax when I bought the doughnuts!! Somehow that seems illegal.... I'm contacting EA. doubt it will help though.
  • dromtsul
    1169 posts
    edited December 2012
    The iTunes gift card was a gift from my son, who payed tax on the purchase
    Are you sure about that? Did he buy anything else along with it? Gift cards don't get taxed.
  • MamabearPam
    46 posts
    edited December 2012
    dromtsul wrote:
    The iTunes gift card was a gift from my son, who payed tax on the purchase
    Are you sure about that? Did he buy anything else along with it? Gift cards don't get taxed.

    Positive. It was the only thing purchased. He has the receipt. An iTunes card isn't like a normal gift card. You pay the tax here at point of sale. All I know is someone is screwing me over & I'm not impressed.
  • dromtsul
    1169 posts
    edited December 2012
    Positive. It was the only thing purchased. He has the receipt. An iTunes card isn't like a normal gift card. You pay the tax here at point of sale. All I know is someone is screwing me over & I'm not impressed.
    You should take the receipt back to the store. Gift cards aren't supposed to be taxable. It's not a purchase of goods. Then again, I have no idea how things work in Canada. I know it's normal to be taxed on purchases from iTunes, but not on gift cards.
  • xrobotlove
    538 posts
    edited December 2012
    Positive. It was the only thing purchased. He has the receipt. An iTunes card isn't like a normal gift card. You pay the tax here at point of sale. All I know is someone is screwing me over & I'm not impressed.

    I just bought gift card today and didn't get taxed... Are you sure you didn't pay for an activation fee? Did you buy it online or in a store?
  • Calerock
    312 posts
    edited December 2012
    I usually don't get charged tax.

    Today I spent 10$, and got charged 1.30$ tax
  • H1_ROADBLOK
    2884 posts Member
    edited December 2012
    Damn Ontario, Canada and their 13% sales tax! :cry:
  • PlacentaSandwich
    1148 posts
    edited December 2012
    I bought a iTunes gift card today.
    Can someone explain me, step by step, how to buy donuts now?

    Please and thanks.
  • adamclipper
    43 posts
    edited December 2012
    In the UK, VAT is shown on the price at the shelf so you know how much you will be paying before reaching the till.
  • spiffshine
    1978 posts Member
    edited December 2012
    I bought a iTunes gift card today.
    Can someone explain me, step by step, how to buy donuts now?

    Please and thanks.

    It is pretty simple:
    Follow the instructions on the back of the card to apply the credit to your iTunes account.
    Log in to TSTO, and buy donuts. They will be charged against your iTunes credit.

    PS - Your username turns my stomach a bit. Why???
  • Jopa79
    357 posts Member
    edited December 2012
    I was charged 6% state tax on the in-app purchase, but no tax when I bought the iTunes e-card.
  • fragrlr0ck
    88 posts
    edited December 2012
    I pay a 6% sales tax on most online purchases, including anything purchased through iTunes. I live in Kentucky. However there are some exceptions, but there are some really absurd tax laws in this state.
  • PlacentaSandwich
    1148 posts
    edited December 2012
    spiffshine wrote:
    I bought a iTunes gift card today.
    Can someone explain me, step by step, how to buy donuts now?

    Please and thanks.

    It is pretty simple:
    Follow the instructions on the back of the card to apply the credit to your iTunes account.
    Log in to TSTO, and buy donuts. They will be charged against your iTunes credit.

    PS - Your username turns my stomach a bit. Why???
    Thanks, already have the donuts.
    Dunno why my username turns your stomach..It's a nice sandwich.

    Also, in topic, didn't paid sales tax.
  • H1_ROADBLOK
    2884 posts Member
    edited December 2012
    Dunno why my username turns your stomach..It's a nice sandwich.

    M1CHel.jpg
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