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Topic: Tax when purchasing

This topic is old and might contain outdated or incorrect information.

I was about to purchase Pro only to find tax added to my order. This vexes me to no end, and given my understanding of tax laws, seems illegitimate.

Can someone please explain to me why this purchase is subject to tax in this case? It is my understanding that the parties involved in the transaction would require a physical presence in my state (Ohio) in order for this tax to be legally required. Atomix is in Pennsylvania and Digital River is in Minnesota.
 

Posted Sun 13 Nov 16 @ 3:29 am
Did you contact Digital River? Some states Require tax on products that are not in that state. Ohio may not require tax, but Pennsylvania may require that it be collected. Read this.
 

Posted Sun 13 Nov 16 @ 7:37 pm
Even if one were to take the liberal view on "tangible products", it specifically states to charge sales tax "to your Pennsylvania customers". The sales tax that was proposed to be charged was in fact my local sales tax rate in Ohio. Other locations from various states I claimed to be buying from also had tax with differing rates.

I did even more research into this, and the only way this could legally be done is to specifically register in states to collect their taxes for them and then send them that revenue. But that makes no sense... you don't have to do it; you just drown yourself in unnecessary paperwork, increase the immediate end cost to your consumers, and subject yourself to the possibility of additional auditing.
 

Posted Sun 13 Nov 16 @ 8:13 pm
taylaPRO InfinityMember since 2007
No body likes paying taxes and I'm from one of the highest paying rip off tax countries in the world, God knows if the companies collecting taxes on behalf of a particular country ever pass on the aforementioned taxes but it's a fact of life you either pay the tax or walk away from whatever you want to buy, stop publicly crying into your beer and get on with it.
 

Posted Sun 13 Nov 16 @ 9:43 pm
We try to keep politics out of the forum, because it is a very passionate subject. It's actually in our Rules, so I leveled your post up before there's blood on the forum floor.
 

Posted Mon 14 Nov 16 @ 1:32 am
tayla wrote :
No body likes paying taxes and I'm from one of the highest paying rip off tax countries in the world, God knows if the companies collecting taxes on behalf of a particular country ever pass on the aforementioned taxes but it's a fact of life you either pay the tax or walk away from whatever you want to buy, stop publicly crying into your beer and get on with it.


Yes, none of us like to pay taxes, but we all do it.
 

Posted Mon 14 Nov 16 @ 1:34 am
taylaPRO InfinityMember since 2007
Until recently I used to pay more UK tax than Google and that's a fact... that's how crazy our system is!
 

Posted Mon 14 Nov 16 @ 1:40 am
United Kingdom tax law has no bearing in the United States. I'm not trying to be political. I'm merely remarking upon the bewilderment of charging sales tax on an internet purchase to a customer outside of a state where you have a physical presence. Steam, for example, headquartered in Seattle, only charges sales tax in Washington state. As a person who has a somewhat above average understanding of taxes and Quill v. North Dakota, this reeks of fraud.
 

Posted Mon 14 Nov 16 @ 5:28 am
AdionPRO InfinityCTOMember since 2006
I'm quite sure digital river wouldn't collect tax if they were not required to, so probably best to contact them to get an explanation
 

Posted Mon 14 Nov 16 @ 6:38 am
I am. Not looking good right now.

Digital River: "Residents of Minnesota, California and Washington State are charged applicable sales tax. Some Online Stores charge taxes in additional locations, please check the Online Store FAQ section for verification."
What Online Store FAQ, exactly? This?
http://www.virtualdj.com/wiki/FAQ.html
Says nothing.
 

Posted Mon 14 Nov 16 @ 9:31 pm
How much was the tax. what percentage?
 

Posted Mon 14 Nov 16 @ 10:05 pm
CyberTootie wrote :
Some Online Stores charge taxes in additional locations, please check the Online Store FAQ section for verification.

This say that "some" stores might charge an additional tax.
But we do not.
So any tax charged is solely from Digital River.


This is what Digital River says about it:
Quote :

- SWREG is required to collect and remit US sales tax in Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Washington and Wisconsin – click here to see SWREG information about this.

- Customers in these states can place tax exempt orders under certain qualifications – click here to see SWREG information about this.

- Sales tax will not be collected from customers in other states.

Apparently you got a different information.
Do you have a link to where you found it?
 

Posted Tue 15 Nov 16 @ 5:40 am
My quote from Digital River came from an automated e-mail response to a "Why am I being charged tax?" support request. I followed up asking what is the "Online Store FAQ" to which I received an apology that they weren't Electronic Arts support and was directed to the EA support site.

I was, in a way, able to cross-reference the quote you provided, and I am now satisfied that nothing shady is going on.
 

Posted Tue 15 Nov 16 @ 2:14 pm


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