Tax for Digital Download?

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ghost_cat

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As I went through the process on Origin to purchase a digital copy of Battlefield 4, I noticed that a sales tax was slapped on to the final price. This is my first purchase through Origins, but it's still curious to me: how or why is there a tax on a digital product when other services (i.e. Steam) do not apply tax to the final price?

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tearhead

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You could always buy it through amazon. They don't put tax on digital purchases.

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Kidavenger

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@ghost_cat: How about we don't bring attention to the matter and continue not buying games from Origin. win win in my book

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isomeri

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Steam does apply taxes to my purchases as well as Origin of course.

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mosespippy

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I've paid tax on all my PSN purchases except for a weird 6 month stretch last year when there wasn't tax applied.

You should pay tax anyway. It's the cost of living in the free world, where we have the benefit of non corrupt police, doctors*, schools, roads, etc. *Not applicable everywhere in the free world.

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ghost_cat

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I got nothing against taxes or Origin (except that it's a hassle having to use another service other than Steam), but Steam never charges tax on any of my purchases, so I thought it was kind of odd. Amazon, of course, does not either (so far).

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MannyMAR

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Depends on your state laws and where you live. Like if you live Washington then you'll be charged tax because Valve's located there.

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ghost_cat

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#8  Edited By ghost_cat

@mannymar: Oooooooh! I forgot that an EA studio exist in Austin, Texas (I live in Dallas). This all makes sense now, derp.

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strainedeyes

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Yeah, it depends where you live. Amazon only charges tax if they have a physical presence in your state (call center, warehouse, etc..).

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JayEH

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It depends what state you're in. In VA they don't charge sales tax on digital purchases. (I'm sure that will change with lobbying)

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ch3burashka

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#11  Edited By ch3burashka

As I went through the process on Origin to purchase a digital copy of Battlefield 4, I noticed that a sales tax was slapped on to the final price. This is my first purchase through Origins, but it's still curious to me: how or why is there a tax on a digital product when other services (i.e. Steam) do not apply tax to the final price?

Steam taxes me (I'm in WA). It depends on state tax laws.

This is somewhat tangential, but here's a good example of tax "loopholes" - http://taxfoundation.org/article/quick-tax-quiz-when-candy-bar-not-candy-bar-4

So while you and I might call Kit Kat's and Milky Way's candy, they are not technically candy by law. The point is, I guess, depending on the wording (and how much you pay your lawyers and lobbyists) you can either charge tax or not. Amazon has been avoiding taxes like the plague since forever.

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jdh5153

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#12  Edited By jdh5153

I get charged tax on Steam all the time, in PA and Idaho.