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How PS4 players are avoiding PlayStation Network sales tax

From PlayStation Universe: "Some PS4 players are using an illegal method to avoid PlayStation Network sales tax, thus reducing the price of PS Store purchases."

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smolinsk570d ago

And first now are people talking about it?

Sam Fisher570d ago

How aren't you surprised? Sony hasnt taxed for the longest, and now that there is taxing first time i see an article like this

Cobra951570d ago

Sony may have taken the longest, but paying tax on all purchases and services in the States has been a thing for a very long time. They vary state by state, and a precious few don't have any sales tax. (Somebody mentioned Oregon.) Internet sellers and buyers have dodged those taxes for a very long time--to the point where some people believe that online or digital purchases aren't subject to taxation. (Wrong.) State governments have been trying to put an end to this so-called "Amazon discount" for years. I guess they're making headway.

Isn't it interesting how this article tells you *exactly* how to go about dodging taxes, and then tells you not to do it. Haha! Riiiight! *Wink* *Nudge*

rainslacker569d ago

Not all sales online require sales tax to be charged. Sales tax is often referred to as a sales AND use tax. The "and use" is the important part. If the item isn't to be used in a state that it's being sold, then it's not taxable.

Even on Amazon, you can sometimes avoid sales tax by picking 3rd party sellers who ship from other states, or even if it's one of those amazon shipped items that ships from another state.

The sales tax is charged in states where a company has a presence. If amazon went to a single distribution center, then they would be able to get away with not charging sales tax except to residents in the state that it presides, but Amazon would not be as efficient since they have distribution centers everywhere, and Sony is in much the same boat with some presence in almost every state.

570d ago Replies(1)
XanderZane569d ago

I didn't know you could use PayPal on the PS Store. If that is an option and taxes aren't being taken out, how is that the user's fault? Sony should have this fixed when the full tax program gets released in April.

rainslacker569d ago

You'd still have to pay taxes with paypal if you live in a state affected by this.

The reason to use paypal is that Sony requires address and name verification while processing your CC(or rather some banks have stricter requirements from this service, or something), and if you change your account address to avoid sales tax, it won't match up with your bank account info.

I have this problem now with a recent move, and can't make purchases on PSN with my CC since I haven't updated everything everywhere. I ended up using an PSN card from Amazon, so not really a big deal.

Papafynn570d ago

I live in NY state & Playstation has never charged me taxes on any service. I only recently noticed this because I get charged taxes on Xboxone purchases. I I Use PayPal on both consoles. I'm going to guess it's just a matter of time before PS4 purchases add taxes too.

donthate570d ago (Edited 570d ago )

It's not a matter of time, Sony is doing it right now. I'm in California, and I'm not charged tax on Xbox.

From what I gather, Sony is basically adding sales tax to every state, hence why people use the UK.

Edit: @GT67

You got me there. Although, it's Oregon.... Lots of trees and nothing else. Not for me except maybe Portland.

Retroman570d ago

" Sony is basically adding sales tax to every state"

Except Oregon nooooooooo sales tax ever.

GrubsterBeater570d ago

I don't pay any sales tax here in Colorado on the PlayStation store either... Never had to before, and I still don't.

sinspirit570d ago (Edited 570d ago )

Not the island of Guam B)

No tax here.

ziggurcat569d ago

"I'm going to guess it's just a matter of time before PS4 purchases add taxes too."

no because it has to do with the law.

justsomeoffdude570d ago

Wait let me get this straight...Isn't the sales tax on psn products illegal in the first place? Physical game discs cost $60 which I believe already includes the "sales" tax. The psn game price is the same $60 (in some cases it costs even more) which i also believe includes the aforementioned sales tax.. so what is this new sales tax from??

Gamble20570d ago (Edited 570d ago )

Huh? What state with sales tax are you shopping in where the retail price includes the taxes? That doesn't make sense. The US doesn't use a VAT system. It's $59.99 plus an additional applicable sales tax. The PSN store used to avoid collecting the additional tax, but they have decided it is legally safer as a company to begin collecting it. So now both online and in store there is sales tax.

KwietStorm570d ago

Nothing ever included tax. Where have you been buying your games from? Or does someone buy your games for you?

jer1122570d ago

Exactly I buy all my games digital I live here in California and have never been taxed on a game before Xbox does tax on games. I have never been taxed on psn and i buy everthing online.

sloth3395570d ago

@jer1122 I live in California also and never been taxed on any digital game for PSN, Xbox, or Nintendo so I don't know why you would be paying taxes on Xbox when I dont

donthate570d ago

Some countries has taxes included at the price shown. The US is different, because different regions have different taxes (even between cities), thus tax is calculated at checkout time. Furthermore, you are constantly informed how much taxes you are paying.

That is a huge benefit in keeping taxes lower.

2pacalypsenow569d ago

United states does not include tax in the retail price.

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Eidolon570d ago

Didn't know taxes were thing on PSN. Taxes on digital, ughhhh.. I think prices are already sometimes ridiculous for digital.

Gamble20569d ago

They didn't used to tax PSN in most states. Sony recently has begun assessing them to comply as best as possible with local tax codes to avoid ambiguous statute interpretations they may face in the future.

Donnie81570d ago

It was nice while it lasted but I guess ill just pay the tax and game on. Ill gladly pay a few bucks extra if it means I get to play gems like hzd and Ni Oh.

rdgneoz3570d ago

Sony isn't keeping the taxes to use to fund games, the state/government will be.

FATHASUN569d ago

The state/government will use the taxes to fund games?

/s

Seriously though. I am sure Sony did not just decide to charge taxes. The PS4s success has possible triggered this. Can't just let all that money slip by so States are now paying attention.

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