Posted by Imprint

As for tax, they were probably doing that before, it was just calculated into points.

Posted by Craftz1

Wait, so we have to pay tax on the cards, now we have to pay tax on purchases too? Wtf

Purchases are only taxed when you're paying with real money. There was probably always tax. Before when we could pay with points, while tax wasn't taken out of your points, you paid tax when you purchased the points. Now tax is taken when you purchase the item, like a game.

For example, when you buy a card of points from a store, you'd pay around 6% tax depending on where you live. When you redeemed the points for digital content, there was no tax involved.

Now when you purchase digital content with real money, there are no points involved, therefore the tax is being taken from the digital content purchase, and not from a card purchase.  

Posted by null

Purchases are only taxed when you're paying with real money. There was probably always tax. Before when we could pay with points, while tax wasn't taken out of your points, you paid tax when you purchased the points. Now tax is taken when you purchase the item, like a game.

For example, when you buy a card of points from a store, you'd pay around 6% tax depending on where you live. When you redeemed the points for digital content, there was no tax involved.

Now when you purchase digital content with real money, there are no points involved, therefore the tax is being taken from the digital content purchase, and not from a card purchase.

What if you buy a card and then a game? Double taxed?  

Posted by Dusty

What if you buy a card and then a game? Double taxed?

If you pay for the game with virtual currency, then you shouldn't be.  

Posted by null

Purchases are only taxed when you're paying with real money. There was probably always tax. Before when we could pay with points, while tax wasn't taken out of your points, you paid tax when you purchased the points. Now tax is taken when you purchase the item, like a game.

For example, when you buy a card of points from a store, you'd pay around 6% tax depending on where you live. When you redeemed the points for digital content, there was no tax involved.

Now when you purchase digital content with real money, there are no points involved, therefore the tax is being taken from the digital content purchase, and not from a card purchase.

I was never once taxed for purchasing M$ Points from a store or even digitally when the currency was still in use, but I also noticed sales tax on XBL. IIRC Microsoft Points weren't taxed whether in-store or digitally because they were considered a digital currency and weren't allowed to be taxed by law. Since they switched to USD and other "real" currencies, they're taxable now.  

Posted by Talon

I was never once taxed for purchasing M$ Points from a store or even digitally when the currency was still in use, but I also noticed sales tax on XBL. IIRC Microsoft Points weren't taxed whether in-store or digitally because they were considered a digital currency and weren't allowed to be taxed by law. Since they switched to USD and other "real" currencies, they're taxable now.

It's possible you weren't taxed when buying the points. What I should have said is regardless of you being taxed when you purchase the points or not, you won't be taxed for redeeming the points for downloads.  

While all of you guys are stressing over the Xbone

I'm enjoying my Wii U  

Posted by MattKan

While all of you guys are stressing over the Xbone I'm enjoying my Wii U

So what are you playing?