I know this isn't too new and it's been around awhile, but why is tax charged now for digital purchases? They removed the point system and replaced it with just normal currency. My problem with this is that if an item is let's say $10 and I have exactly $10, then I can't get it because it charges me tax. Why exactly did they start doing this?  

Posted by Tyler

I know this isn't too new and it's been around awhile, but why is tax charged now for digital purchases? They removed the point system and replaced it with just normal currency. My problem with this is that if an item is let's say $10 and I have exactly $10, then I can't get it because it charges me tax. Why exactly did they start doing this?

They did this because of the fact that the points were not very popular and considering microsoft wanted to branch the xbox to be an entertainment system so that a family could use it, they thought it would be a hassle if it was a points system  

Posted by Tyler

I know this isn't too new and it's been around awhile, but why is tax charged now for digital purchases? They removed the point system and replaced it with just normal currency. My problem with this is that if an item is let's say $10 and I have exactly $10, then I can't get it because it charges me tax. Why exactly did they start doing this?

Points were designed so that you would always have a small number left and therefore be enticed to buy more. People didn't like them because they were ambiguous/a waste of money. At least now you can see what you're purchasing. As for tax, they were probably doing that before, it was just calculated into points.  

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

The end is neigh.  

Posted by Imprint

Points were designed so that you would always have a small number left and therefore be enticed to buy more. People didn't like them because they were ambiguous/a waste of money. At least now you can see what you're purchasing. As for tax, they were probably doing that before, it was just calculated into points.

I really don't think they charged tax before. I would have noticed if I couldn't purchase something. They're even charging tax on a $1 avatar item.



These are some of my purchases. Soul Calibur II HD was originally $19.99. This just really throws off my balance of what I can buy. The points were simple and almost always ended in "0" digits. If I had exactly 800 Microsoft Points to buy an 800 Microsoft Point DLC item, I could get it. Now if I have exactly $8 to get an $8 DLC, I can't because of the tax. I'm not really sure why we weren't charged taxes before though.  

Its definitely a law, not sure if federal or by state.
I'm sure Microsoft was lobbying for it though. They're all crooks.  

Posted by Imprint

Points were designed so that you would always have a small number left and therefore be enticed to buy more. People didn't like them because they were ambiguous/a waste of money. At least now you can see what you're purchasing. As for tax, they were probably doing that before, it was just calculated into points.

How were they doing the tax before if we bought a 1600 card and a bought a game for 1600 points? With that changed now like Tyler stated above that if you have exactly 8 dollars you can't buy it because you need tax. So if cards are 15 dollars flat you'll need to buy another card just to cover the tax.

http://forums.xbox.com/xbox_forums/g...0/3915547.aspx  

Posted by Rexx

Its definitely a law, not sure if federal or by state.
I'm sure Microsoft was lobbying for it though. They're all crooks.

Uh have you seen the US national debt? The govt needs money, they gotta make more of it someway. This does suck though, i was already overpaying for crap on microsoft as is.  

Posted by Ghettoicedtea

Uh have you seen the US national debt? The govt needs money, they gotta make more of it someway. This does suck though, i was already overpaying for crap on microsoft as is.

Taxing digital purchases on Xbox Live isn't going to solve the national debt crisis. -___- please don't even start

Microsoft is probably supporting this law to be passed so they can make more money, they could give a rats ass about the debt.  

Just buy a Wii U.
Just stop.  

Posted by Cobalt

Just buy a Wii U.
Just stop.

I own one.

Thanks for your input on this guys. I just wanted to know a little more about why they did it. It sucks, but I guess there's no changing it.  

I'm pretty sure the tax is state based. So whatever state you are in they will charge that states sales tax. I remember the governemnt saying there were going to do that with all online purchases about 2 years ago. For xbox it might not make sense, but for other goods and services state businesses were losing money because it was cheaper to buy online than to shop within state.  

Posted by Unknown

I'm pretty sure the tax is state based. So whatever state you are in they will charge that states sales tax. I remember the governemnt saying there were going to do that with all online purchases about 2 years ago. For xbox it might not make sense, but for other goods and services state businesses were losing money because it was cheaper to buy online than to shop within state.

Yes but if you don't have a credit card or PayPal linked with your microsoft account, and buy cards, you have to pay tax on the cards, then paying tax again on purchases over xbox live. So basically you're paying the tax for the same item twice.  

Posted by Craftz1

Yes but if you don't have a credit card or PayPal linked with your microsoft account, and buy cards, you have to pay tax on the cards, then paying tax again on purchases over xbox live. So basically you're paying the tax for the same item twice.

In my state there is no tax on buying gift cards or gift mastercards. So at least where I am from it would cost the same. As long as you use those trough online xbox purchases. I don't know if there is sales tax for microsoft cards. Beats me.