It never really occurred to me before, but when we gift games on the Wii we should only be charged the tax for the location we are gifting to, but we are actually taxed based on our local tax because we are taxed for buying points rather than games. If they ever implement gifting on the 3DS, I wonder if we will have to manually enter the recipient's region to have the purchase taxed correctly.
@iphys I don't believe you are accurate in that analysis. Since the purchase is being made by you in your regional area or state, you are charged your tax. An analogy would be if you bought a gift for someone on a website (Amazon, ToysRUs.com, or wherever) but ship it directly to someone in a different state, you are charged at your sales tax rate.
@iphys I don't believe you are accurate in that analysis. Since the purchase is being made by you in your regional area or state, you are charged your tax. An analogy would be if you bought a gift for someone on a website (Amazon, ToysRUs.com, or wherever) but ship it directly to someone in a different state, you are charged at your sales tax rate.
Maybe it's different in the US, but in Canada whenever I buy gifts for someone online they tax me based on the province it is being shipped to rather than the province my credit card is billed to. I used to take advantage of this all the time by shipping stuff from Amazon to my Dad's place in Alberta whenever I was going to make a trip there, because Alberta has no provincial tax. It would make tax evasion all too easy if you could just set up a credit card with a billing address in another province with low tax but always have your stuff shipped to your home elsewhere, so that's probably why they don't base it on the billing address.
"Okay, it seems that you're required to pay sales tax anytime you want to buy a game on the eShop. Why? I already payed sales tax on the Prepaid card! The old "points system" bypassed this requirement somehow, and it seems stupid that we now have to pay in bizzare increments. (Legend of Zelda: Link's Awakening cost me $6.32) If "points" instead of "$" allow for tax to be bypassed, I don't see why we can't just use those"
Hmmm, that's not good! Many people complained about left-over points. Now it seems that it gets even worse. Hopefully the same is not the case in Europe!
Yeah, it's hardly tax evasion if you were already forced to pay tax on the card in the first place. That seems silly that they do charge tax on a cash card though — maybe ask the store you bought it from as it might have been a mistake.
The IRS and local & state taxing authorities may beg to differ. If you're providing false information in order to avoid paying taxes you are supposed to be paying, that is tax evasion.
Is someone planning on telling? e_e cracks knuckles
If you want to avoid sales tax on pre-paid cards when adding funds to the eshop, simply use a credit/debit card. Yes, it is wrong for your jurisdiction to double-dip, but there is a legal alternative: It's completely legal to use a card in the eShop, provided the card is in your name and/or you have permission to use it. Avoiding to pay the required sales tax by changing your zip code to a location within a sales tax free state (Oregon, New Hampshire, Montana, Delaware, Alaska), or any other state with online sales tax loopholes, however lucrative and tempting, is illegal. The IRS/Feds probably won't come knocking on your door any time soon, as this is a state affair, not a federal one.
I urge people to maintain a "Don't Ask, Don't Tell" policy regarding any preference for tax evasion, as forum posts, logons, and IP addresses can easily be subpenaed by athorities and used as evidence against you.
Most of the people here are too young to understand anything about taxes or just about any of what you just said, Stardust, lol. But yeah, I think you're pretty spot-on, personally.
well theres no sales tax where i am, and online i just set it to a different location than what i am living at (its a secret location) and i dont get internet tax either, no tax at all for me
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No internet sales tax where I live, at least for now. I hope it stays that way, though I do wish that they simply added on the tax when you add funds rather than taxing you when you make a purchase. This system is awkward to say the least.
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Well, I live in San Antonio, Texas and I do have to pay sales tax on my eShop purchases. I just bought The Legend of Zelda: Link's Awakening DX and I paid $6.48 after tax. I'm not really upset or surprised by this but it still is disappointing nonetheless. I was kinda hoping that there wouldn't be any sales tax. I used to have to pay sales tax on my digital purchases in the Playstation Store but a few months ago Sony did away with that(well, at least in my area they did). I hope that Nintendo can fix this too.
I just read an older comment about California online tax. I'm not sure what it refers to because I know I don't pay tax on games I directly download where it asks that question, but there are taxes levied on the buying of the card (same as in KY which has no net sales tax.)
Here's a dodge though, go buy a 3DS Point Card for $20. Gamestop, and others have them and they do NOT collect tax. I got one last week, then turned around and got Let's Golf 3D and 3D-Xevious and neither taxed me so I saved like $1.25 or so in taxes.
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Topic: Sales Tax? Wtf, Nintendo?
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