Ugh, double taxed when using PSN cards

[AsianriceX]

I decided to look into pre-paid cards after successfully disassociating my XBLM gamertag from my credit card.

I bought a PSN card at the local Meijer (yes the cards do exist) and I paid sales tax. No problem, I did the same thing with Microsoft Point cards.

I get home, redeem the card into my wallet and attempt to buy Bionic Command from the PSN store. Wait a second... my total includes taxes again?

I paid taxes on the cards themselves. Fair enough. I bought a tangible item from the B&M store and it's not a gift card, but why do I have to pay taxes on a digital good when I've paid taxes on the credits I'm using to purchase it with?

My theory: Since the XBLM uses Microsoft Points to redeem goods, it's obfuscated enough that they don't have to charge you a percentage of points as tax. Correct me if I'm wrong, but I don't remember seeing anyone getting charged an extra percentage of points on XBLM transactions.

Since the PSN card uses "cash" terminology, it's still considered taxable when you redeem it for goods from the PSN store. I just paid taxes twice for the opportunity to buy from the PSN store.

Oh well. Lesson learned.

 

[destrekor]

Originally posted by: AsianriceX
I decided to look into pre-paid cards after successfully disassociating my XBLM gamertag from my credit card.

I bought a PSN card at the local Meijer (yes the cards do exist) and I paid sales tax. No problem, I did the same thing with Microsoft Point cards.

I get home, redeem the card into my wallet and attempt to buy Bionic Command from the PSN store. Wait a second... my total includes taxes again?

I paid taxes on the cards themselves. Fair enough. I bought a tangible item from the B&M store and it's not a gift card, but why do I have to pay taxes on a digital good when I've paid taxes on the credits I'm using to purchase it with?

My theory: Since the XBLM uses Microsoft Points to redeem goods, it's obfuscated enough that they don't have to charge you a percentage of points as tax. Correct me if I'm wrong, but I don't remember seeing anyone getting charged an extra percentage of points on XBLM transactions.

Since the PSN card uses "cash" terminology, it's still considered taxable when you redeem it for goods from the PSN store. I just paid taxes twice for the opportunity to buy from the PSN store.

Oh well. Lesson learned.

I think that's normal... sadly. I believe tax is charged on any goods purchased, digital or or at a B&M store, with any kind of gift card, since it is considered equal to tax.

Do you get charged tax when buying Microsoft points? That may be how Microsoft collects tax. But with a point card, you would get to avoid paying tax to Microsoft.
I don't think this is really a Sony thing, as due to the system Sony uses, they may not be able to avoid tax, since tax isn't something they can claim as income, rather it goes to the government.
Since points are not same as legal tender, that is probably how Live avoids taxation on individual purchases with points.

 

[aphex]

Originally posted by: destrekor

Originally posted by: AsianriceX
I decided to look into pre-paid cards after successfully disassociating my XBLM gamertag from my credit card.

I bought a PSN card at the local Meijer (yes the cards do exist) and I paid sales tax. No problem, I did the same thing with Microsoft Point cards.

I get home, redeem the card into my wallet and attempt to buy Bionic Command from the PSN store. Wait a second... my total includes taxes again?

I paid taxes on the cards themselves. Fair enough. I bought a tangible item from the B&M store and it's not a gift card, but why do I have to pay taxes on a digital good when I've paid taxes on the credits I'm using to purchase it with?

My theory: Since the XBLM uses Microsoft Points to redeem goods, it's obfuscated enough that they don't have to charge you a percentage of points as tax. Correct me if I'm wrong, but I don't remember seeing anyone getting charged an extra percentage of points on XBLM transactions.

Since the PSN card uses "cash" terminology, it's still considered taxable when you redeem it for goods from the PSN store. I just paid taxes twice for the opportunity to buy from the PSN store.

Oh well. Lesson learned.

I think that's normal... sadly. I believe tax is charged on any goods purchased, digital or or at a B&M store, with any kind of gift card, since it is considered equal to tax.

Thats not the case here in FL. When I buy a gift card, it's not taxed. Only when the person buys an item and redeems the value on the card are there any taxes involved.

I'm pretty sure I'm not taxed on any of the iTunes Music cards I buy at Target either. I assume the PSN card should be the same. I don't think the local store should be taxing you.

 

[JackBurton]

Why did you decide to disassociate your XBLM gamertag from my credit card?

 

[mugs]

Sounds like Meijer screwed up.

 

[AsianriceX]

Originally posted by: JackBurton
Why did you decide to disassociate your XBLM gamertag from my credit card?

I didn't feel it appropriate that they not allow me to delete my card info from my gamertag. I had to go through this rigmarole over the course of 30 days where "supervisors" would call me in order to confirm that I wanted to do so.

One Scenario: Imagine someone purchasing a Gold subscription as a gift for another person through the console on a whim. They enter in their credit card information and suddenly their card is locked to that gamertag. Now the person that controls the gamertag can possibly purchase points without the original person's consent. (I say possibly because I can't remember whether or not it confirms the last 4 of the credit card when you do a transaction)

How does the gift giver remove their credit card info? They have to call MS support as you can't do this online, then run through their crappy automated system to get to a live person. Once you've given them payment information, you can never have it be blank. You can only replace what's there and even then, it keeps a history of previous payment information.

This may be fine for most people, but for me, not so much.

 

[R Nilla]

Wait, the PSN store charges tax? Does this depend on the state and affect XBLM and Wii Shop in those cases?

 

[BladeVenom]

A PSN card should be considered a gift certificate which I didn't think are taxed.

 

[Queasy]

Originally posted by: R Nilla
Wait, the PSN store charges tax? Does this depend on the state and affect XBLM and Wii Shop in those cases?

It does depend on the state. Only New York charges and enforces taxes for online purchases right now which will affect MS and Wii point purchases.

 

[mlm]

Originally posted by: Queasy

Originally posted by: R Nilla
Wait, the PSN store charges tax? Does this depend on the state and affect XBLM and Wii Shop in those cases?

It does depend on the state. Only New York charges and enforces taxes for online purchases right now which will affect MS and Wii point purchases.

If you have a Sony Style store in your state, you'll get charged tax. There are only a few states where you don't have to pay it.

 

[JackBurton]

Originally posted by: AsianriceX

Originally posted by: JackBurton
Why did you decide to disassociate your XBLM gamertag from my credit card?

I didn't feel it appropriate that they not allow me to delete my card info from my gamertag. I had to go through this rigmarole over the course of 30 days where "supervisors" would call me in order to confirm that I wanted to do so.

One Scenario: Imagine someone purchasing a Gold subscription as a gift for another person through the console on a whim. They enter in their credit card information and suddenly their card is locked to that gamertag. Now the person that controls the gamertag can possibly purchase points without the original person's consent. (I say possibly because I can't remember whether or not it confirms the last 4 of the credit card when you do a transaction)

How does the gift giver remove their credit card info? They have to call MS support as you can't do this online, then run through their crappy automated system to get to a live person. Once you've given them payment information, you can never have it be blank. You can only replace what's there and even then, it keeps a history of previous payment information.

This may be fine for most people, but for me, not so much.

You know, that's a good point. I think I am just going to purchase a PSN card from my local BestBuy for my parents, rather than permanently binding their CC to their PSN account. I just want to make it easy for them to purchase/rent a movie if they wanted to.

 

[mlm]

Originally posted by: JackBurton
You know, that's a good point. I think I am just going to purchase a PSN card from my local BestBuy for my parents, rather than permanently binding their CC to their PSN account. I just want to make it easy for them to purchase/rent a movie if they wanted to.

PSN accounts aren't like Live accounts. You can remove credit cards with no hassle (even through the web store).

 

[AsianriceX]

Originally posted by: mlm

Originally posted by: JackBurton
You know, that's a good point. I think I am just going to purchase a PSN card from my local BestBuy for my parents, rather than permanently binding their CC to their PSN account. I just want to make it easy for them to purchase/rent a movie if they wanted to.

PSN accounts aren't like Live accounts. You can remove credit cards with no hassle (even through the web store).

That's what I figured, but I didn't want to try it yet without another person's confirmation 🙂

 

[AsianriceX]

Originally posted by: JackBurton

Originally posted by: AsianriceX

Originally posted by: JackBurton
Why did you decide to disassociate your XBLM gamertag from my credit card?

I didn't feel it appropriate that they not allow me to delete my card info from my gamertag. I had to go through this rigmarole over the course of 30 days where "supervisors" would call me in order to confirm that I wanted to do so.

One Scenario: Imagine someone purchasing a Gold subscription as a gift for another person through the console on a whim. They enter in their credit card information and suddenly their card is locked to that gamertag. Now the person that controls the gamertag can possibly purchase points without the original person's consent. (I say possibly because I can't remember whether or not it confirms the last 4 of the credit card when you do a transaction)

How does the gift giver remove their credit card info? They have to call MS support as you can't do this online, then run through their crappy automated system to get to a live person. Once you've given them payment information, you can never have it be blank. You can only replace what's there and even then, it keeps a history of previous payment information.

This may be fine for most people, but for me, not so much.

You know, that's a good point. I think I am just going to purchase a PSN card from my local BestBuy for my parents, rather than permanently binding their CC to their PSN account. I just want to make it easy for them to purchase/rent a movie if they wanted to.

Unfortunately PSN cards aren't available at regular retailers yet. According to Wikipedia, they're only available at Meijer's and military bases right now.

If PSN allows you to manage your payment info as easy as mlm says, then I'd say go for using the CC.

 

[JackBurton]

Originally posted by: AsianriceX

Originally posted by: JackBurton

Originally posted by: AsianriceX

Originally posted by: JackBurton
Why did you decide to disassociate your XBLM gamertag from my credit card?

I didn't feel it appropriate that they not allow me to delete my card info from my gamertag. I had to go through this rigmarole over the course of 30 days where "supervisors" would call me in order to confirm that I wanted to do so.

One Scenario: Imagine someone purchasing a Gold subscription as a gift for another person through the console on a whim. They enter in their credit card information and suddenly their card is locked to that gamertag. Now the person that controls the gamertag can possibly purchase points without the original person's consent. (I say possibly because I can't remember whether or not it confirms the last 4 of the credit card when you do a transaction)

How does the gift giver remove their credit card info? They have to call MS support as you can't do this online, then run through their crappy automated system to get to a live person. Once you've given them payment information, you can never have it be blank. You can only replace what's there and even then, it keeps a history of previous payment information.

This may be fine for most people, but for me, not so much.

You know, that's a good point. I think I am just going to purchase a PSN card from my local BestBuy for my parents, rather than permanently binding their CC to their PSN account. I just want to make it easy for them to purchase/rent a movie if they wanted to.

Unfortunately PSN cards aren't available at regular retailers yet. According to Wikipedia, they're only available at Meijer's and military bases right now.

If PSN allows you to manage your payment info as easy as mlm says, then I'd say go for using the CC.

Meijer's and military bases? Seriously?! Jesus Sony, WTH? Alright CC it is.