Why is ZOS charging me $14.99+TAX? ($16.43 total)

e.gamemarkb14_ESO · May 2014

This is the first company I have seen trying to charge a tax on a digital service! What is going on here Zenimax? You are a US company, I am a US subscriber. I have never been charged any type of tax for any other MMO ever.

The money is not an issue, it's the principle here and frankly I would like an explanation. I am not aware of any "laws" in the US that requires any form of tax for digital service, else my other subs would have them as well.

If a rep from ZOS can link me where you state there will be a tax on digital services, I would appreciate it.

KalecStromhir · May 2014

Some states do charge tax on any purchase you make.

If Your use of the Services is subject to applicable governmental charges (including but not limited to sales tax, value added tax (VAT), goods and service tax (GST) or other taxes), then You will pay for those charges. Your total price may include such charges or such governmental charges may be separately identified from Your Paid Service(s) fees as shown during the payment process. Failure to invoice You for any such charges does not relieve You of the liability to pay such charges.

Wolfborn · May 2014

I paid for 6 months and got charged a tax but Im Australian so am used to getting the digital finger up my ass. Dont worry OP, the pain hurts worse the first time, after that, all you feel is a slight pinch

isengrimb16_ESO · May 2014

They never taxed me, but then I live in a Canadian province that doesn't have sales tax, and US companies can't charge GST (as far as I know). No American tax was attached to my charge, and they even charged me in Canadian dollars, which surprised the shoes off of me.

Or the GST came out to so little, I really don't keep track of .. a few nickels, seeing as how the bank likes to draw and quarter me in service charges.

Arsenic_Touch · May 2014

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

ThisOnePosts · May 2014

They have to honor the locale's tax laws from which you make your purchase depending on a few factors. Where the heck has everyone been living the last 10 years, under a rock? LOL

GossiTheDog · May 2014

Part of the problem is lots of other MMOs don't charge tax - because they are based offshore or with corporate structures to avoid paying tax.

AlexDougherty · May 2014

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

Servers are located in Texas, just saying.

demonlkojipub19_ESO · May 2014

And then there is Oklahoma that doesn't outright charge tax, but then tells you to report all non-taxed transactions (like these sub fees) so you can pay on them.

Oklahoma Use Tax /lol

isengrimb16_ESO · May 2014

demonlkojipub19_ESO wrote: »

And then there is Oklahoma that doesn't outright charge tax, but then tells you to report all non-taxed transactions (like these sub fees) so you can pay on them.

Oklahoma Use Tax /lol

Does anyone actually do that?

Corithna · May 2014

AlexDougherty wrote: »

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

Servers are located in Texas, just saying.

I'd like to know where you came up with saying the servers are in Texas as this is a Maryland company. http://www.zenimaxonline.com/maryland.html

Victor74 wrote: »

felixgamingx1 wrote: »

If you can't afford $14.99 + applicable tax you shouldn't be playing MMOs let alone be buying games.

Pay attention. He said money isn't the issue, it's the principle.
Read the actual post before you get snarky.

These taxes are not going to the company, they are going to state and federal agencies responsible for the collection of these taxes. If you or the original poster has a problem with taxes then those questions should be taken up with the state or federal laws that are enacting such upon these transactions. As far as the business practices of other companies goes I am far more comfortable with a company assuming I'm mature enough to understand the concept of taxes then one that feels it's customers are so young and inexperienced that they include all appropriate tax into the cost of the product. What this ends up meaning is that everyone, even those in states where no tax is collected end up paying a portion of the taxes collected. But in turn have no benefit in the form of governmental services such taxes would have enabled or enhanced. So as a Californian resident I really don't want to pay a tax that will go to Washington, Texas, Arizona, Illinois, New Jersey, New York or anywhere else in the nation.

wrlifeboil · May 2014

Corithna wrote: »

AlexDougherty wrote: »

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

Servers are located in Texas, just saying.

I'd like to know where you came up with saying the servers are in Texas as this is a Maryland company. http://www.zenimaxonline.com/maryland.html

Victor74 wrote: »

felixgamingx1 wrote: »

If you can't afford $14.99 + applicable tax you shouldn't be playing MMOs let alone be buying games.

Pay attention. He said money isn't the issue, it's the principle.
Read the actual post before you get snarky.

These taxes are not going to the company, they are going to state and federal agencies responsible for the collection of these taxes. If you or the original poster has a problem with taxes then those questions should be taken up with the state or federal laws that are enacting such upon these transactions. As far as the business practices of other companies goes I am far more comfortable with a company assuming I'm mature enough to understand the concept of taxes then one that feels it's customers are so young and inexperienced that they include all appropriate tax into the cost of the product. What this ends up meaning is that everyone, even those in states where no tax is collected end up paying a portion of the taxes collected. But in turn have no benefit in the form of governmental services such taxes would have enabled or enhanced. So as a Californian resident I really don't want to pay a tax that will go to Washington, Texas, Arizona, Illinois, New Jersey, New York or anywhere else in the nation.

The Internet is a strange and wonderful thing. Did you know that a company's servers can be in a different location than the location of its headquarters? Amazing True Fact!

Welcome to the Internet Age (twenty-five years late).

AlexDougherty · May 2014

Corithna wrote: »

AlexDougherty wrote: »

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

Servers are located in Texas, just saying.

I'd like to know where you came up with saying the servers are in Texas as this is a Maryland company. http://www.zenimaxonline.com/maryland.html

Maybe, but several threads have stated that both servers are in Texas, if you know where they are actually located, then please tell us.

yodased · May 2014

Remember kids, Lack of knowledge of the law is not an acceptable reason to break it. For instance I live in Florida, which is a "use tax" state. That means, well: this

http://dor.myflorida.com/dor/taxes/consumer.html

Most states have these laws that most people simply do not know exist nor care to follow lol.

Belrim · May 2014

Slightly off-topic. I live in Finland, and usually all mmo's that i have subbed have stated the subscription fee so that it includes taxes (what you see is what you pay), and ESO is no exception.

There is just one game, that did things differently, star trek online. That game charged me VAT according to finlands rates, wich are quite high, ended up paying bit over 16eur (over 22 usd) for one months sub.

Moonraker · May 2014

GossiTheDog wrote: »

Part of the problem is lots of other MMOs don't charge tax - because they are based offshore or with corporate structures to avoid paying tax.

It doesn't matter where they are based in some cases, at least in the EU as you get charged sales tax for the country you reside and most sales, including digital sales, are taxed on residence not location of the company.

There is a way currently for a company to have a registered office (for sales tax) in the EU and pay the rate of sales tax in that country but that is changing in 2015 to residency across the EU.

I'm not exactly sure how it works in the USA except it looks complicated by the way that each state sets it's own sales tax. Wiki has a decent amount of information for Taxation of digital goods.

The payment of sales tax etc. is covered in the ToS:

If Your use of the Services is subject to applicable governmental charges (including but not limited to sales tax, value added tax (VAT), goods and service tax (GST) or other taxes), then You will pay for those charges. Your total price may include such charges or such governmental charges may be separately identified from Your Paid Service(s) fees as shown during the payment process. Failure to invoice You for any such charges does not relieve You of the liability to pay such charges.

source

Shillen · May 2014

Usually internet goods and service providers do not have to charge sales tax if they are operating out of state. But once they have operations in the state that you live in they must charge the sales tax to any residents of that state.

Soloeus · May 2014

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

And more states have them already passed but not gone into effect.

-Indiana

hauke · May 2014

usualy when a mmo says : we need you to pay X dollars a month,

they pay the tax. acctually every other internet subscribe does it.

its just a new perk in TESO that you can pay tax individuealy

oxygen_boarderb16_ESO · May 2014

lol people amaze me on what they find to complain about on the internet.

hauke · May 2014

oxygen_boarderb16_ESO wrote: »

lol people amaze me on what they find to complain about on the internet.

everytime someone trys something obvioueesely stupid for the first time normal people are amazed

Arreyanne · May 2014

About 5-10 years ago states figured out that people where buying stuff online and they (the States) were not getting their fair share on taxes, so that passed the Internet Sales tax laws

What tickles me about the entire thing is there are certain sites and games, that because of location of the parent company, I do not have to pay the state sales tax.

hauke · May 2014

remember no one else in the internet got the ability to pay tax beyond the asked price, TESO is special

because no one else can get away with fraud

teso doesent have a legal depardment or else this wouldn t happen

snowmanflvb14_ESO · May 2014

AlexDougherty wrote: »

Arsenic_Touch wrote: »

They have no control over the tax, it's your state that did it, not them. I suggest you actually look up your state's laws.

These states are ones I know charge an internet sales tax.

- Arizona
- Illinois
- New Jersey
- New York
- Texas
- Washington

Servers are located in Texas, just saying.

it is not only where the servers are located but what state you the buyer is depending on applicable state laws in the U.S.

oxygen_boarderb16_ESO · May 2014

hauke wrote: »

remember no one else in the internet got the ability to pay tax beyond the asked price, TESO is special

because no one else can get away with fraud

Are you even a real person, like what is this garbage.

hauke · May 2014

or maybe the bosses never asked TESO s legal department... bad bosses

hauke · May 2014

omg im a boss what i say is true

legal department lawyer : eh boss, you goto do the legal thing or you go to jail...

boss : im never going to jail im a boss what i say is true

and besides that, legal lawyer your the fall guy, you go to jail, im the boss i don t go to jail

hauke · May 2014

im the messias, im waiting.

what am i waiting for ?

im waiting for your selfdestruction..

concobar · May 2014

Like a Boss?

anghara · May 2014

Yes, the IL income tax forms this year made a huge deal of asking you to pay any sales tax on internet purchase you hadn't been charged by the vendor...you had to sign some affidavit swearing to God that you'd paid all the sales tax you were supposed to, and enter all the taxes you'd skipped out on into your income tax return so you could pay them now...

Which I did, *of course*...

DaiKahn · May 2014

Wolfborn wrote: »

...I paid for 6 months and got charged a tax...

You did? Did it cost you more than AU$78 for the six month sub cause that's what I paid