https://techcrunch.com/2018/06/21/states-will-be-able-to-charge-sales-tax-on-online-purchases-thanks-to-the-supreme-court/
In a five-to-four decision issued today, the Supreme Court ruled that states can make online businesses collect sales taxes — even if they don’t have a physical presence in that state.
Today’s ruling overturns a decision from the Court in 1992 that paved the way for the explosion of online retail in the United States.
Indigo_Shade wrote: »Pretty sure they will not be charging tax on non-US customers.
I just got billed for my 6 month sub and noticed it was over $4 more than usual and was wondering what it was for. I've been paying the same amount since launch so this had me confused.
So can they charge tax on customers not in the USA if so how and is that even legal?
DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
DaveMoeDee wrote: »DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
There is no awareness to raise. The Supreme Court decided this. Delivering the software digitally doesn't matter. You will get charged the same sales tax as if you bought it in your local Game Stop. You aren't going to come up with a better argument than ones already made before the court.
Unless you think you can get legislators to change laws concerning this.
Thanks for the case name, I'll check it out.DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
South Dakota v. Wayfair established that both physical and economic presence are to be considered when establishing a sales tax nexus. It's an important change for web-based businesses, but it affects all interstate commerce such as catalogs and cold calls.
It's important to note that this is not additional revenue for ZOS or any other individual business. They report it, need a permit to collect it in the first place, and file it on whatever schedule they have (monthly, quarterly or annually).
There are differences in how states classify products, so some may see ESO+ as a taxable service, some as a non-taxable service, and others as a miscellaneous point of sale contributing to economic nexus. It's incredibly complicated. That's why people you'll never see on ESO Live handle this part of the business.
Vicente Valtiere, Dark Brotherhood, OblivionSpill some blood for me dear brother
DocFrost72 wrote: »I'd vastly prefer entirely digital items to not be a taxable service, and will let my representatives know that.
DocFrost72 wrote: »DaveMoeDee wrote: »DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
There is no awareness to raise. The Supreme Court decided this. Delivering the software digitally doesn't matter. You will get charged the same sales tax as if you bought it in your local Game Stop. You aren't going to come up with a better argument than ones already made before the court.
The supreme court rules on existing law. If new law is introduced, and is also not found unconstitutional, the old precedent would in effect be "overturned." As for arguments, I'll have to go look for it.Unless you think you can get legislators to change laws concerning this.
I have a feeling if more people knew that digital objects are being taxed simply because you are a resident of a state, legislators may feel pressure to listen to their constituency. Or not. Who knows these days.Thanks for the case name, I'll check it out.DocFrost72 wrote: »This is confusing. Why does my state collect taxes on a digital item that does not exist in, travel through, stop in, or use infastructure (other than what I already pay for) in my state's borders? Might be time to raise awareness.
South Dakota v. Wayfair established that both physical and economic presence are to be considered when establishing a sales tax nexus. It's an important change for web-based businesses, but it affects all interstate commerce such as catalogs and cold calls.It's important to note that this is not additional revenue for ZOS or any other individual business. They report it, need a permit to collect it in the first place, and file it on whatever schedule they have (monthly, quarterly or annually).
Oh for sure. ZOS' hands are tied when it comes to taxes and tax law. I don't blame them in the slightest (hence my initial post eeferencing my state and not the company).There are differences in how states classify products, so some may see ESO+ as a taxable service, some as a non-taxable service, and others as a miscellaneous point of sale contributing to economic nexus. It's incredibly complicated. That's why people you'll never see on ESO Live handle this part of the business.
I'd vastly prefer entirely digital items to not be a taxable service, and will let my representatives know that.