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IvanPonomarev

US Sales Online Can Be Taxed (How Does This Affect WG?

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Supreme Court ruled onlines sales can be taxed by whichever state you live in. Will the current price of ships be the same cost with the tax added in or should we see a rise in costs of goods and services in the premium shop?

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No clue on that. Has anyone here that lives where WG has a presence and has a state sales tax bought from the premium shop and were you charged tax in the past?

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Yes, but not all of them yet have similar e-commerce tax legislation (yet), though.

I already get charged sales tax for WG purchases.

Edited by FlakKnight

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Just now, FlakKnight said:

Yes, but not all of them yet have similar e,commerce tax legislation (yet), though.

The way the law was until this ruling was an online retailer only had to collect sales tax if they had a presence, store, office, or warehouse in that state. With the new ruling they have to collect even if they don't. That was why I asked if someone from where WG has offices has been charged sales tax on premium shop purchases in the past. This is not going to be a problem for the big operators but it is going to be a nightmare at least in the short term for the small ones with 46 states and DC plus the territories that have one.

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The way WG has made stuff available means that we actually don't own the product. They sell you the right to use the product (aka a long term rental),. You never own the product, you can't download it or access it outside of the online game, therefore there is no tangible transfer of goods. In most states that is not taxable. 

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They have an office in Austin Texas and I’m in Houston and I haven’t been taxed on anything.   Last money I spent was over 6 months ago though.

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This is funny. wait until you see all the little headaches it's going to create.

States that have sales taxes that vary from product to product with weird exemptions for things I'm going to give guys a headache.

If things keep going in the same direction New Jersey is on track to change its sales tax 4 times in 4 years

 

Edited by MasterofGladness
I hate doing this on my cell phone and messed a whole bunch of stuff up so I came back and straightened it out

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They are selling a service, not goods, so I question whether or not this applies.

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4 minutes ago, MasterofGladness said:

This is funny. wait until you see all the little headaches it's going to create.

States that have sales taxes that vary from product to product are going to wreak havoc. 

 

That is a short term issue depending on when this goes into effect. Give it a few months and multiple software options that will seamlessly apply the correct sales tax will be available.

3 minutes ago, awiggin said:

They are selling a service, not goods, so I question whether or not this applies.

Most services have to charge sales tax but they also usually include it in their rates.

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Most states already apply their sales tax on commerce done in their state.  If you already live in a state that collects sales tax you're used to it and it wont make any real difference since usually by having a sales tax, your other taxes are lower.  In other words, most people will not notice any difference or hardship since they have a job, if you don't have a job then it sucks to be you, get one, quick.

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19 minutes ago, BrushWolf said:

That is a short term issue depending on when this goes into effect. Give it a few months and multiple software options that will seamlessly apply the correct sales tax will be available.

There are 12,000-13,000 various tax jurisdictions in the US. Knowing the rates is just the start of the problem. (One that I very much doubt a software company will be able to keep up with without the software being very expencive.)

How is a small business supposed to submit the paperwork to hundreds of diffrent jurisdictions? (Yes many do still require it be paper.)

How are they supposed to cut checks to all of them?

Some of these jurisdictions require you to register before you start doing business.

Some of these jurisdictions expect you to keep submitting monthly sales tax paperwork even if you have had no further sales in the jurisdiction.

The existing system worked just fine. Gonna be interesting to see what the future brings.

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44 minutes ago, BrushWolf said:

The way the law was until this ruling was an online retailer only had to collect sales tax if they had a presence, store, office, or warehouse in that state. With the new ruling they have to collect even if they don't. That was why I asked if someone from where WG has offices has been charged sales tax on premium shop purchases in the past. This is not going to be a problem for the big operators but it is going to be a nightmare at least in the short term for the small ones with 46 states and DC plus the territories that have one.

46 states? I think you mean 45. 50 minus Delaware, New Hampshire, Montana, Oregon and Alaska

Edit: Oh wait.... Maybe Alaska will count depending on what city you are in. So yeah you may be right at 46

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31 minutes ago, awiggin said:

They are selling a service, not goods, so I question whether or not this applies.

It depends on the state.  Some will tax only products, some will tax both products and services.  It just depends upon the state.  

 

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1 minute ago, paradat said:

46 states? I think you mean 45. 50 minus Delaware, New Hampshire, Montana, Oregon and Alaska

I should have put it different but DC has a sales tax too which brings it up to 46 plus an unknown number of territories that have a sales tax too.

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Just now, BrushWolf said:

I should have put it different but DC has a sales tax too which brings it up to 46 plus an unknown number of territories that have a sales tax too.

No you are correct 46 states plus or minus Alaska and DC is not a state so... yeah. Regardless lot of states and most of them are unique to one degree or another. Will be an will be about a 8% increase in price where I live.

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53 minutes ago, BrushWolf said:

The way the law was until this ruling was an online retailer only had to collect sales tax if they had a presence, store, office, or warehouse in that state. With the new ruling they have to collect even if they don't. That was why I asked if someone from where WG has offices has been charged sales tax on premium shop purchases in the past. This is not going to be a problem for the big operators but it is going to be a nightmare at least in the short term for the small ones with 46 states and DC plus the territories that have one.

Yes but because it wasn't allowed previously, most state tax codes don't do that.  

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30 minutes ago, Seadog_Supreme said:

 

1wwfpg.jpg

Smart man doesn't realize not all states even have sales tax.

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32 minutes ago, Seadog_Supreme said:

 

1wwfpg.jpg

As I already said I said it wrong, it is 45 states and DC for 46. I didn't want to dig for the territories.

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Just another [edited] up by our SC.  As I understand it states do not have regulatory authority over goods transferring between separate states.  Federal laws govern that to prevent trade wars back in the early days of  the union.  This should have been something congress had to pass rather than a bunch of judges legislating from the bench.

Good luck small business keeping up with this.  Unless you are willing to buy software to do this from a giant like Amazon its not going to be possible.  Mega business totally will not use this to further crush the little guy.

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4 minutes ago, Destroyer_KuroshioKai said:

Just another [edited] up by our SC.  As I understand it states do not have regulatory authority over goods transferring between separate states.  Federal laws govern that to prevent trade wars back in the early days of  the union.  This should have been something congress had to pass rather than a bunch of judges legislating from the bench.

Good luck small business keeping up with this.  Unless you are willing to buy software to do this from a giant like Amazon its not going to be possible.  Mega business totally will not use this to further crush the little guy.

This is about sales into the state. The way the law was before they had to charge sales tax only if they had a presence in that state. Now they have to collect it for every state, district, and territory that has a sales tax. Give it a few months and every POS software program will have this built in.

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I am honestly wondering how government can make taxes on something like an online game transaction since most transactions in game are not like going to a store and buying something or having something delivered to your house or  Business. In game you are buying something within a game, that stays in game, and normally provides no real world benefit except bring joy to the user.

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46 minutes ago, HazardDrake said:

The existing system worked just fine.

 

Gonna be interesting to see what the future brings.

The existing system didn't bring in more money to the government. This will. :Smile-angry:

 

The future will bring more accountants and tax lawyers, raising the cost of goods. :Smile-angry:

 

2 minutes ago, Admiral_Thrawn_1 said:

I am honestly wondering how government can make taxes on something like an online game transaction since most transactions in game are not like going to a store and buying something or having something delivered to your house or  Business. In game you are buying something within a game, that stays in game, and normally provides no real world benefit except bring joy to the user.

Uncle Guido wants his cut.

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6 minutes ago, BrushWolf said:

This is about sales into the state. The way the law was before they had to charge sales tax only if they had a presence in that state. Now they have to collect it for every state, district, and territory that has a sales tax. Give it a few months and every POS software program will have this built in.

More reason to go cash and crypto.

[edited] the government.

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