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."

[smolinsk]

And first now are people talking about it?

[Sam Fisher]

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

[Cobra951]

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*

[rainslacker]

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.

[XanderZane]

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.

[rainslacker]

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.

[Papafynn]

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.

[donthate]

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.

[Retroman]

" Sony is basically adding sales tax to every state"

Except Oregon nooooooooo sales tax ever.

[GrubsterBeater]

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

[sinspirit]

Not the island of Guam B)

No tax here.

[Majin-vegeta]

I'm in Cali and I don't get taxed on PS

[ziggurcat]

"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.

[justsomeoffdude]

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??

[Gamble20]

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.

[KwietStorm_BLM]

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

[jer1122]

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.

[sloth3395]

@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

[donthate]

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.

[2pacalypsenow]

United states does not include tax in the retail price.

[Eidolon]

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

[Gamble20]

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.

[Donnie81]

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.

[rdgneoz3]

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

[FATHASUN]

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.

[Heyxyz]

I live in Illinois and I still have not been charged the tax or received the "tax email."

So, Illinois appears safe!

[WeAreLegion]

Same. Finally, something our state doesn't suck at.

[rdgneoz3]

No email for MA so far, and NH is a quick hop over the border for tax free shipping (or a future PSN home address...).

[Gamble20]

Many states are safe for now, but Sony has made it clear they will slowly shift to applying the sales tax in every state.

[LordofYogurt]

Thanks for telling me how to avoid it! Remember boys and girls, taxation is theft.

[Aenea]

Taxation is theft? How on earth do you think a government can pay for everything without taxes???

[ufo8mycat]

Don't be so gullible. Tax is also used as an excuse, by the government, to fill their OWN pockets. You think it's all used legitimately? Please

[gamingisnotacrime]

how many things the government is doing that should not be doing. if government was not so power hungry it would not need so much money

[Gamble20]

I don't believe taxation is "theft". I do believe taxation is private property seized by fiat. The latter interpretation acknowledges it is legal, without being happy about it :)

[Tzuno]

Smart.

[masterfox]

what sales tax ? the hell Sony ? definitely don't agree on this.

[RosweeSon]

Pretty certain U.K been getting taxed forever just shop around I get my PSN credit off eBay normally £25. For £20 that's 20% off then use it in a sale when they've knocked off 20-60% off that's another saving on top. Or spend when for example currently spend £40-50 and they'll give you a £10er back next month. All adds up. Plus I've got my nectar card linked up to eBay so every now and again I can get another £2.50 off my credit using up my nectar points ;)

[Gamble20]

UK uses a totally different tax system. Not applicable to this.

[Corpser]

Tax fraud guys

[Butters360]

Some states have digital tax mandated and some don't. All depends on where you live. Sucks if it happens to you but Sony is following the law.

[rdgneoz3]

Or the easy way is New Hampshire. No sales tax there for physical goods, so digital should be fine as well.

[Derceto]

Oh no. People are doing illegal things to cut their spending. Breaking news. Full story at 11.

[Nodoze]

Thanks for the tips on how to do this. The U.K. is nice this time of year. :)

Just kidding. That said don't we pay enough taxes already? I mean enough already.

[opinionated]

Solution: move to a state that doesn't suck.

[Morgue]

I haven't paid sales tax since day one and thought that it varied from state to state. Which if that was the case, I live in Oregon yet pay sales tax when purchasing something from the MS store.

[Gamble20]

It does vary from state to state but the number of states is increasing as Sony has been forced to abide more closely to ambiguous sales tax collection laws.

[annoyedgamer]

I make over $4000 a month by working from home then I found out Taxation is theft.

[DafunkyRebel]

if the president doesn't pay his taxes why should we?

[Flipflopp]

Everything gets taxed eventually. The government wants their cut too. This happened to Ebay, Amazon, and now game stores. They are realizing that this is a billion dollar industry as a whole and want a piece of the pie. No way to escape it. This method of avoiding it will only cost you in the long run.

[Ace326]

They shouldn't be allowed to tax digital sales unless purchased from an actual store. It's one thing if we were taxes from the beginning, but that's not the case here. We already give the government more than enough in taxes as is.

[gamingisnotacrime]

"...but some unscrupulous players have found a way around it..."

As if taxes are based on some honorable system. Im not anti tax 100%, we are just over burden with taxes.

[HarbingerofGod]

Simple legal solution without risk of account ban. Create a UK account, buy the games there via Paypal and play the games on your main account when you sign into it. I been doing this for the longest to play Japanese games that will never release in the U.S.

Another solution would be to buy physical games via buy/sell apps they're a lot more cheaper then any retailer or ps plus sale. Best of all no tax.

Happy gaming!

[cyx]

Smfh sales tax man. Surprised we dont get taxed for just being alive. Knowing this reality we live in i wouldn't be surprised if that happened one day. Tax everything yet millions of dollars still go missing and the govt is never accountable and gets bailed out but god forbid a few ppl are evading psn tax lol really puts things into perspective lol

[Psychotica]

NH, no sales tax :)

[Bobertt]

They have been collecting tax since psn came out and this method has been around since the ps3 came out why is this now news?