I dont believe Iowa has these "taxes".

That is pretty stupid but I know for a fact that if you go the credit card route, you don't pay tax to get the cash in your account so you only pay the one tax on the actual game. SO if you can, always try to add pints with credit card

If you paid the tax up front on the card, you're not avoiding taxes. The point is you shouldn't have to pay the taxes on your games twice by being taxed on the total value of the card and then taxed all over again on the individual game purchases. It's actually somewhat worse than paying the tax twice because it's effectively like paying tax on tax: If your tax is 10%, you pay $22 for a $20 card that only allows you to download $18.18 of games, which is effectively paying about 21% tax in total.

I used a credit card to put my balance on the eShop, so I wasn't taxed on that, and apparently Maryland doesn't charge tax for online stores either.

That's absolutely insane...very disappointed with that. Nintendo should compensate by making $20 worth $22 in eshop credit or something.

There is no "shouldn't have to" when it comes to paying taxes; have a chat with Wesley Snipes about that. Law is law. Perhaps the laws and regulations should be changed, but that doesn't change the fact that taxing authorities have pounced on online transactions. The principle here is that you're paying the normal store-sales tax when you buy the card, then when you make the online purchase, it's a different transaction being made, and you're paying the tax related to that online transaction.

Double-dipping? Yeah, pretty much, but that doesn't change the fact that if you decide it's "unfair" and work out a way not to pay the tax, it's breaking the law.

the_shpydar speaks the truth. a sad truth, but it is the way it is...
i dislike the new eShop cash system, since you are still forced to pay at least $5, even though things are not evened out, so no matter how it figures out ($1.99+tax for this, $4.99+ tax for that), there is really no way to buy things without losing out of some cash in the long run no matter what.

as a credit card user for this, it would have been best if i could buy whatever at face value (even with taxes)... none of this $5 interval amount thing.

I'm pretty sure the law would be on the side of the consumer if you were forced to pay the tax twice, as that obviously should not be the case that you're taxed more than once. A lot of people aren't being taxed on the purchase of these cards, and I think that's as it should be if the eShop later taxes you on your purchases. In my experience when you buy cash cards or gift certificates you do not pay tax, and the tax is charged when the purchase is ultimately made: the eShop cards should be no different.

Does anyone know if eShop purchases in the UK are taxable? If so, that would go some way to explaining the discrepancy between UK and US pricing since VAT (sales tax) is now at 20%.

Ahhh, I love being Canadian. Buy from the store? Not taxed, use points? Not taxed either. Credit card? Smooth sailing, bro.

Are you saying the eShop doesn't charge Canadian taxes? I got charged taxes in AB and NS when I bought points on the Wii with my credit card, and the only way I ever bought points cards without paying taxes was when I bought them on eBay from the US.

The only thing I've never understood is why iTunes has never charged me taxes, because Apple does charge Canadian taxes if you buy from the Apple store, so it's not like they don't have a business presence in Canada.

I've bought points card for my DS while I was in Alberta (Edmonton, to be exact), and BC (Forget what city) and did not get charged tax. Also here in Oshawa, Ontario, I have not been taxed on buying points cards, or using a credit card for any online service (Like my World of Warcraft, for example).
Some places do charge tax, but they're generally stores that are independently owned like a convenience store. So if I have none at work, I go to Blockbuster as it's close to my house.

Unfortuately, I am taxed on the E-shop too. That takes a good bit from be. I could usually buy (2) 500 point games on the dsi but not on the 3DS. Also, I can't even add money to my account using a credit card. It keeps giving me an error code: 0005-6536

Yeah, with this whole taxing issue, I think I'll hold on to my DSi so that way I don't get double-taxed when I see a DSiWare game I want.

You mean to tell me Amazon.ca was ripping me off by charging taxes on points cards? I just looked back and I bought points cards from them in June 2009 and they charged 13% NS tax, and I checked my credit card bills and the Wii Shop charged US$10.50 for 1000 points in May 2008 in AB and US$11.30 for 1000 points in October 2008 in NS. Unless this was something that changed recently, that's really weird that other people in Canada weren't charged taxes on Nintendo points.

@iphys - No, I just started getting taxed for buying physical points cards sometime in the last 12 months. But, taxes are not applied when buying DSiWare with Nintendo Points, so while I'm still getting taxed no matter what card I buy, I can still save money by buying DSiWare with my DSi so I don't have to pay a 5% tax rate like I do with the 3Shop.

That is actually a good idea. Just download the dsiware games you want on the dsi and transfer them. Then, you won't have to worry about taxes.

That's exactly my point.

I live in Oklahoma and I don't have to pay tax on points or on eShop.
But when My Family lived in Washington we had to pay tax on Nintendo points.

Ouch, the full 13% would really add up if I had gotten taxed on any points card I've bought. The only service I've ever been taxed on is PSN, not on the cards, but on the purchases.