Google Play Store Sales Tax?

[manutdc]

Bought a game off the Google Play Store today. I know they charge sales tax, but I got charged 20% for a purchase in Maryland, where the sales tax is 6%. See below:

Am I missing something here, or did I get charged the wrong sales tax? Just want to be sure before I go to customer support. Thanks in advance for any insight!

 

[ponyo]

That's strange. I've never been charged sales tax for app purchases on the Play Store. I'm in GA where we have 7% sales tax. I purchased Stars Wars Pinball game last week for $1.99 and there was no sales tax added.

 

[MrSquished]

That's strange. I've never been charged sales tax for app purchases on the Play Store. I'm in GA where we have 7% sales tax. I purchased Stars Wars Pinball game last week for $1.99 and there was no sales tax added.

most states you don't pay sales tax unless the seller has an actual physical presence in the state - whether that is offices or somethign like that.

that's why online retailers were having a blast on online orders and brick and mortars were pissed, and it's understandable why.

i remember when NY passed a law that makes sales tax applicable to online orders. states are also mad they don't get that cut now either.

in NJ i pay no sales tax on Amazon orders, but i do for google play orders. not sure what google has here in NJ. Amazon is building a warehouse in NJ so after that we will pay sales tax.

what is interesting is that if you look for jobs on Amazon, they have jobs listed in NJ - at some companies they seem to own like Audible, but yet no sales tax. one would think that could count as a physical presence but maybe they are not full owners or something. not sure of the details.

 

[ponyo]

most states you don't pay sales tax unless the seller has an actual physical presence in the state - whether that is offices or somethign like that.

that's why online retailers were having a blast on online orders and brick and mortars were pissed, and it's understandable why.

i remember when NY passed a law that makes sales tax applicable to online orders. states are also mad they don't get that cut now either.

in NJ i pay no sales tax on Amazon orders, but i do for google play orders. not sure what google has here in NJ. Amazon is building a warehouse in NJ so after that we will pay sales tax.

what is interesting is that if you look for jobs on Amazon, they have jobs listed in NJ - at some companies they seem to own like Audible, but yet no sales tax. one would think that could count as a physical presence but maybe they are not full owners or something. not sure of the details.

I know how online sales tax work. I get charged sales tax from the Google Play Store if I buy physical item like Nexus 4, 7, etc. But no sales tax for app purchases. Same for Apple. If I purchase from the Apple online store, I get hit with sales tax for items like the iPad, Macbook Air, etc. But I've never been charged sales tax for app purchases from the App store.

 

[lothar]

I'm in Maryland and I've never been charged sales tax on any Android app.
That is very strange indeed.

***EDIT***
I just did a preview test and tried purchasing that particular app, and it's showing sales tax.
Either it's a serious bug or the app developer has a physical presence in the state of Maryland.
Can someone that lives in another state try to buy the app and see what comes up in the order preview?
https://play.google.com/store/apps/...wiY29tLm5ld3N0YXJnYW1lcy5uZXdzdGFyc29jY2VyIl0.

 

[MrSquished]

in NJ i don't remember paying taxes on apps from google play, but i do on movies and tv shows from them.

I'm in Maryland and I've never been charged sales tax on any Android app.
That is very strange indeed.

***EDIT***
I just did a preview test and tried purchasing that particular app, and it's showing sales tax.
Either it's a serious bug or the app developer has a physical presence in the state of Maryland.
Can someone that lives in another state try to buy the app and see what comes up in the order preview?
https://play.google.com/store/apps/...wiY29tLm5ld3N0YXJnYW1lcy5uZXdzdGFyc29jY2VyIl0.

shows the same .60 tax for me in NJ. must be an app specific screw up

 

[manutdc]

Thanks for the confirmation guys. Seems really odd, I would imagine that Google Play adds in the sales tax, not the app? Developer is from the UK, afaik.

I'll see if I can get the money back!

 

[ponyo]

I just tested that app and it's charging me 20% tax too. And I'm in GA. It has to be a bug. 20% tax is crazy. There shouldn't be any tax on app purchases at the Google Play Store or Apple App store.

 

[dagamer34]

Speaking as a developer, tax on the Apple App Store is automatic. Tax on the Google Play Store is up to whatever the developer decides based on settings in Google Checkout.