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Sales Tax for US Players

How will purchases be "taxed" for players buying gold using gift cards instead of Visa/Master Card credit cards?

Comments

  • artful (US1)artful (US1) US1 Posts: 6,617
    How will purchases be "taxed" for players buying gold using gift cards instead of Visa/Master Card credit cards?
    If it works like using gift cards for any other purchase, the taxes are added to your purchase and deducted from the gift cards. If you paid taxes when you bought the gift cards, you'd essentially be paying taxes twice.
  • How will purchases be "taxed" for players buying gold using gift cards instead of Visa/Master Card credit cards?
    If it works like using gift cards for any other purchase, the taxes are added to your purchase and deducted from the gift cards. If you paid taxes when you bought the gift cards, you'd essentially be paying taxes twice.
    Gift Cards are supposed to be treated like Cash - you should never pay Sales Tax when buying a Gift Card.  Only when you use them.


  • 24-KL0V3R (US1)24-KL0V3R (US1) US1 Posts: 2,464
    Thank you Fuzzy.  I suppose that since I live in Oregon and there is no sales tax in that State, then I won't be charged a tax for my gold purchases when I use a gift card.   <3o:)
  • JVD (US1)JVD (US1) US1 Posts: 2,784
    edited 06.01.2020
    @CM_Arjuna What states in the US is GGS registered in? or where can we find a list?
  • artful (US1)artful (US1) US1 Posts: 6,617
    FuzzyBear said:
    How will purchases be "taxed" for players buying gold using gift cards instead of Visa/Master Card credit cards?
    If it works like using gift cards for any other purchase, the taxes are added to your purchase and deducted from the gift cards. If you paid taxes when you bought the gift cards, you'd essentially be paying taxes twice.
    Gift Cards are supposed to be treated like Cash - you should never pay Sales Tax when buying a Gift Card.  Only when you use them.


    Here in the US, some gift card purchases are subject to sales tax...not many, but they do exist. That's why I wrote "if you paid taxes when the you bought the gift cards," not knowing which one she uses. 
  • SuzyQ22 (US1)SuzyQ22 (US1) US1 Posts: 1,475
    Take this with a grain of salt and do your own worthy investigation on your responsibility of state sales tax regarding digital products.


  • 24-KL0V3R (US1)24-KL0V3R (US1) US1 Posts: 2,464
    Take this with a grain of salt and do your own worthy investigation on your responsibility of state sales tax regarding digital products.


    Thank you!  :Do:)
  • bigez (US1)bigez (US1) US1 Posts: 111
    well i decided i will not spend another penny on this game.you already charge way to much for a bunch of garbage and the gold is not worth any thing
  • 24-KL0V3R (US1)24-KL0V3R (US1) US1 Posts: 2,464
    It is not GGS' fault that they need to comply with our government's laws. If they did not comply then they might get into real trouble.  Maybe you could petition your State's Legislation to change their taxation policy on the purchase of digital products, like a few state have done.
  • CrazyBigfarm55 (US1)CrazyBigfarm55 (US1) US1 Posts: 1,226
    Will the monthly subscription be taxed too?
  • 24-KL0V3R (US1)24-KL0V3R (US1) US1 Posts: 2,464
    I would expect so, if you live in a State that does sales tax on online purchases.
  • @CrazyBigfarm55 (US1) Good question, I will find out what happens regarding invoicing if that is changing too.
  • Just Kar (US1)Just Kar (US1) US1 Posts: 340
    edited 08.01.2020
    Nothing about this game is downloaded so I would love someone to explain to me how this game can compare to Apple, Google, or Amazon. They sell downloads which does fall into the digital tax...how is this the only online game that all of the sudden has to comply yet there is no download.

    Nothing in this game is ours to keep, they make that clear when there is a glitch that gives us too much of something and they come in and take it away.

    This whole new US tax thing is nuts. If we buy something from Mexico, Mexico does not charge us US tax... :D
  • Just Kar (US1)Just Kar (US1) US1 Posts: 340
    It is not GGS' fault that they need to comply with our government's laws. If they did not comply then they might get into real trouble.  Maybe you could petition your State's Legislation to change their taxation policy on the purchase of digital products, like a few state have done.
    However, gold is not digital, it is not downloaded and does not fit the description of digital products, nor does a subscription.
  • Fallen (INT1)Fallen (INT1) INT1 Posts: 400
    edited 08.01.2020
    @FarmerKar (US1) If you have a good look at the setup/structure of Google (AKA Alphabet), Amazon and Apple you will see that their ultimate holding company is registered in some tax-haven - hence no tax (in all senses legally possible).

    There has been plenty of press coverage about this in the recent months and some of them have actually admitted to doing it. Ireland being a favourite tax-haven destination. They have also paid some hefty "fines" to settle the matters but at the end of the day all those companies are there to a) enrich shareholders at all costs and b) provide a service.

    While GGS/BFG gold is not digital currency as in most senses (Bitcoin for example) it is still "something" that is paid for in hard currency without recourse/benefit to the relevant tax authority. Personally I would rather deal with an angry rattler than any countries tax office. ;)
  • Just Kar (US1)Just Kar (US1) US1 Posts: 340
    @FarmerKar (US1) If you have a good look at the setup/structure of Google (AKA Alphabet), Amazon and Apple you will see that their ultimate holding company is registered in some tax-haven - hence no tax (in all senses legally possible).

    There has been plenty of press coverage about this in the recent months and some of them have actually admitted to doing it. Ireland being a favourite tax-haven destination. They have also paid some hefty "fines" to settle the matters but at the end of the day all those companies are there to a) enrich shareholders at all costs and b) provide a service.
    But my question here is not about Amazon, Apple, or Google, I don't buy downloads so it really doesn't matter. I am just saying there is a big difference in an online game and a download.
  • Fallen (INT1)Fallen (INT1) INT1 Posts: 400
    edited 08.01.2020
    No @FarmerKar (US1)  it is not, an electronic financial transaction is exactly that...a financial transaction. The format of the transaction might differ, electronic in this case, but it remains that at the end of the day and the taxman wants their cut. A tax on financial transactions is not new at all (since 1694, see here) however in today's world the internet and general inter-connectivity makes it easier and at the same time more difficult to police/tax. This is why crypto-currencies are frowned upon in general by those in power.

    At one stage the financial experts reckoned that if a tax of just 1% was taxed on every financial transaction around the world there would be no need for income tax - personal or business. This may sound silly but it is very much viable; draw $10 from an ATM and tax of $0.10c applies or if Mega company 1 buys Kinda-Mega company 2 for $1billion and when paying for their purchase 1% tax applies again ($10 000 000) unless you expect them to drop off a few crates of $100 bills. The best part it is taxed at source-of-transaction so fewer staff are needed, just a few really jacked servers.

    Taxing electronic transactions is the way of the future for all governments as they are currently missing out on their slice.
  • ijrosh (US1)ijrosh (US1) US1 Posts: 1,325

    it really is determined by your states definition. also what they choose to tax.this came from this website. it goes in more depth explaining the differences.

    https://quaderno.io/blog/sales-tax-digital-products-us/

    so to really know for sure you would have to look up what your states defention and rules regarding digital stuff is. cause by the looks of it every state is way different.


    Sales Tax on Digital Goods by State

    Ok, so now we know that digital products are defined differently in the individual US states. But which states actually tax them and how? Let’s have a look at each state:

    StateTaxableNote
    AlabamaYESDigital downloads are generally considered tangible personal property and are taxable at the same rate as other tangible personal property.
    AlaskaNONo sales tax in the state.
    ArizonaYESDigital downloads are generally considered tangible personal property and are subject to gross receipts tax.
    ArkansasNODigital subscriptions are also tax exempt. Changing to taxable in 2018.
    CaliforniaNOIf you provide a physical copy or physical storage then the sale is taxable.
    ColoradoYESElectronic delivery of “legal publication” newspapers are exempt, since physical copies of those same newspapers are exempt.
    ConnecticutYESSales or purchases of ‘digital downloads’ from the Internet are taxed at a reduced rate of 1%.
    DelawareNONo sales tax in the state.
    FloridaNOIf the item is sold with tangible personal property then the entire sale would most likely be subject to Florida sales tax.
    GeorgiaNONo sales tax in the state.
    HawaiiYESDigital products are taxable in Hawaii.
    IdahoYESTaxable if permanent right to use, Tax-exempt if leasing or renting the product.
    IllinoisNODigital products are tax exempt in Illinois.
    IndianaYESIncludes audio works, audio visual works and books.
    IowaYESDigital products and services related to them
    KansasNONo sales tax in the state.
    KentuckyYESConsidered tangible personal property.
    LouisianaYESDigital products are taxable in Louisiana.
    MaineYESDigital products are taxable in Maine.
    MarylandNOMaryland does not expressly state whether digital products are taxable or non-taxable, so it is generally assumed they are tax exempt.
    MassachusettsNONo sales tax in the state.
    MichiganNONo sales tax in the state.
    MinnesotaYESConsidered tangible personal property. Student digital textbooks and instructional materials are exempt.
    MississippiYESDigital products are taxable in Mississippi.
    MissouriNONo sales tax in the state.
    MontanaNONo sales tax in the state.
    NebraskaYESDigital products and digital codes to access such products are also taxable.
    NevadaNOAlso includes audio-visual works, for both temporary and permanent sales.
    New HampshireNONo sales tax in the state.
    New JerseyYESIncludes digital audio-visual works like movies, audio works like music and ringtones and digital books.
    New MexicoYESDigital products are taxable in New Mexico. Most transactions are subject to New Mexico’s gross receipts tax (the state’s version of sales tax).
    New YorkNOHowever, there are some exceptions to ebooks.
    North CarolinaYESDigital audio works, audiovisual works, books, magazines, newspapers, newsletters, reports or other publications, photographs or greeting cards delivered electronically are all considered tangible personal property.
    North DakotaNONo sales tax in the state.
    OhioYESDigital audiovisual work, digital audio work and digital books are taxable.
    OklahomaNONo sales tax in the state.
    OregonNONo sales tax in the state.
    PennsylvaniaYESPhotos, books, games and other downloads are taxable.
    Rhode IslandNONo sales tax in the state.
    South CarolinaNONo sales tax in the state.
    South DakotaYESDigital products are tax exempt in South Carolina.
    TennesseeYESDigital products are tax exempt in Tennessee.
    TexasYESTaxable as long as the item also taxable if sold in physical format.
    UtahYESDigital products are taxable in Utah.
    VermontYESDigital products are taxable in Vermont, whether transferred electronically for permanent or temporary use.
    VirginiaNONo sales tax in the state.
    WashingtonYESDigital products are taxable in Washington. This includes downloaded digital goods like music and movies, streamed and accessed digital goods, and digital automated services.
    Washington DCYESDigital products include audio/audiovisual works, e-books, digital codes, apps, games, and any other taxable tangible personal property that’s digitally delivered, streamed or accessed, purchased singly or by subscription.
    West VirginiaNONo sales tax in the state.
    WisconsinYESDigital goods are taxable in Wisconsin. This includes audio works, audiovisual works, books and codes used to purchase works (digital or physical) by digital means.
    WyomingYESDigital products are taxable in Wyoming. This includes digital audio works, audio visual works and books.
  • DebRN (US1)DebRN (US1) US1 Posts: 697
    We've been lucky up to this point.  It will come to every transaction, everywhere.  Not surprising.  It just took them a while to realize how much revenue they were missing out on and make a plan to get their fair share. 
  • 24-KL0V3R (US1)24-KL0V3R (US1) US1 Posts: 2,464
    Has anyone recently bought any gold to see if they are taxing it?
  • ava3246 (US1)ava3246 (US1) US1 Posts: 17
    Question about sales tax, is that only aplied if you make in game purchases? cause I thought the game was free to play
  • ava3246 (US1)ava3246 (US1) US1 Posts: 17
    Is sales tax only aplied to in game purchases? cause I thought the game was free to play
  • Question about sales tax, is that only aplied if you make in game purchases? cause I thought the game was free to play
    @ava3246 (US1) If the tax is payable in the state where you live, it will be charged when you purchase gold.
  • ava3246 (US1)ava3246 (US1) US1 Posts: 17
    Thank you, that cleared it up, I dont have to worry about that as I dont buy gold 

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