sales tax when buying apps online with iTunes card?

Discussion in 'iPad Apps' started by silverblack, Apr 23, 2010.

  1. silverblack macrumors 68030

    silverblack

    Joined:
    Nov 27, 2007
    #1
    I need to setup a US account to buy my first paid app (Keynote). I plan on bidding an iTunes card online, but don't know if Apple charges taxes, as I need to decide whether to get a $10 card, or a $15 card (for additional taxes).

    Also, just to confirm, I can buy iPad apps using the iTunes cards right?
    Thanks in advance!
     
  2. citi macrumors 65816

    citi

    Joined:
    May 2, 2006
    Location:
    Simi Valley, CA
    #2
    that is correct, and there is no sales tax on any of the itunes, stuff. Books, Music, Movies, Apps.

    Technically, they can't charge tax on intangible personal property, which downloaded software is considered. The only way to charge tax is if it came in a box.
     
  3. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #3
    Yes they do charge tax.

    People need to read the ***** TOS before they write:

    http://www.apple.com/legal/itunes/us/terms.html
     
  4. Soulcrux macrumors 6502

    Soulcrux

    Joined:
    Nov 8, 2008
    #4
    Makes you think of all the tax revenue states will be losing once all media (especially movies and video games, etc) are download-only, since consumer media is one of the highest grossing industries.
     
  5. Reser macrumors 6502

    Joined:
    Apr 14, 2010
    #5
    From what I have read what you say is untrue.

    Some states get charged Tax in the app store and some states don't. I hear if the state has an Apple store you will get Taxed. You need to find a state that does not get charged tax and make an account using an address in that state.
     
  6. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #6
    :rolleyes: http://www.apple.com/legal/itunes/us/terms.html
     
  7. Soulcrux macrumors 6502

    Soulcrux

    Joined:
    Nov 8, 2008
    #7
    Yes, Jessica, but there are only a few states that specifically tax for digital goods:

    Idaho
    Kentucky
    Nebraska
    New Jersey
    South Dakota
    Tennessee
    Vermont
    Wisconsin

    Funny that it's pretty much only states in mid-USA. Guess they're hurting for more tax revenue
     
  8. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #8
    I think it applies to all states. I was charged tax in NC and in CA.
     
  9. melman101 macrumors 68030

    Joined:
    Sep 3, 2009
    #9
    I have been taxed on all purchases from the iTunes store. New York State here. A $0.99 app costs me $1.06. Tax is $0.07 where I'm at in Yonkers, NY.
     
  10. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #10
    States where you will be charged iTunes tax as of 4/2006 (looking for more updated data)

    Alabama
    Arizona
    Colorado
    Hawaii
    Idaho
    Indiana
    Kentucky
    Louisiana
    Maine
    New Mexico
    South Dakota
    Texas
    Utah
    Washington
    West Virginia
    Washington, D.C.

    So no, you're wrong. It's not just the mid-USA.

    Makes me want to return to some old billings of mine to see why I seem to think I was charged in CA and NC. Then again the article is outdated.

    Apple, on the other hand, says they will charge tax and does not specify which state. Hard to argue with Apple's legal statement. :cool:
     
  11. skubish macrumors 68030

    skubish

    Joined:
    Feb 2, 2005
    Location:
    Ann Arbor, Michigan
    #11
    WRONG!

    Sales tax is charged unless:

    You live in a state that doesn't have sales tax.

    PS your understanding of sales tax is also wrong.
    Sales tax can be charged on intangible goods or services, depends on state law.

    http://en.wikipedia.org/wiki/Sales_tax




    @.jessica I think they charge sales tax in every state that Apple has a physical location. If the state has a sales tax. I live in MI and get charged sales tax from iTunes.
     
  12. Soulcrux macrumors 6502

    Soulcrux

    Joined:
    Nov 8, 2008
    #13
    That's odd, since Washington , D.C. specifically does not tax digital content-

    Washington D.C. – Has a sales tax only on data processing and information services which include the distribution of news or current information. However, the tax statute specifically disclaims sales of digital content and certain Internet related services. Title 47 §2001(n)(1)(N) & (n)(2)(G)

    So unless they claim that all apps distribute news/current information..


    Maybe you should find a more current list =)
     
  13. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #14
  14. Ak8s macrumors newbie

    Joined:
    Mar 17, 2010
    #15
    I am in Texas and I was charged tax. It was more than just the state tax of 6.25% but less than my city's tax of 8.25%. I was charged roughly 7% tax on my purchase.
     
  15. Soulcrux macrumors 6502

    Soulcrux

    Joined:
    Nov 8, 2008
    #16
    Since I gave you a title name and everything, I'm sure it's off the list. Unless you can provide proof that they went in and changed it.


    Anyway- to answer OP. I guess it just depends where you live. I live in California (and have the most physical locations of Apple Stores in the US) and I do not get charged sales tax
     
  16. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #17
    I can play that too. ;) You are in fact my HOTD (that's hero of the day). Seriously.
     
  17. vw195 macrumors 6502

    Joined:
    Dec 27, 2008
    #18
    Tennessee gets charged sales tax as we have local stores and its 9.25% We dont get charged for Amazon as it has no local presence in our state.

    Oh and soulcrux we are in the SE, not mid-USA :)
     
  18. bytethese macrumors 68030

    bytethese

    Joined:
    Jun 20, 2007
    Location:
    Cranford, NJ
    #19
    No tax on songs I've purchased from the iTunes store. I just checked my receipts and all songs and albums, no tax. There was tax charged to at least 2 apps(games) I bought for my iPhone. Looks like it's just apps that get charged tax. Can't attest to books tho. :)
     
  19. bobr1952 macrumors 68020

    bobr1952

    Joined:
    Jan 21, 2008
    Location:
    Melbourne, FL
    #20
    Interesting--just checked my receipts and no tax here.
     
  20. Soulcrux macrumors 6502

    Soulcrux

    Joined:
    Nov 8, 2008
    #21
    Nope. I have apps but no tax. Maybe the developers of the apps were located in your state?
     
  21. sJv macrumors regular

    Joined:
    Jul 11, 2007
    Location:
    Sierra Foothills, CA
    #22
    I haven't been taxed on Apps, music, or tv shows here in CA.
     
  22. citi macrumors 65816

    citi

    Joined:
    May 2, 2006
    Location:
    Simi Valley, CA
    #23
    It does depend on state law, some states collect on internet purchases, when they really shouldn't be. It should only be applied to shipped physical goods, not software.

    You need to understand the sales tax law before spouting off nonsense. I WORK FOR THE CA STATE BOARD OF EQUALIZATION.

    I am in California, HEADQUARTERS to Apple and I don't get charged sales tax. You are wrong.

    Oh and please don't use WIKIPEDIA as the basis for your argument

    Here is CALIFORNIA LAW - REGULATION 1502

    Products electronically transmitted to customers
    Your sale of electronic data products such as software, data, and digital images is generally not taxable when you transmit the data to your customer over the Internet or by modem. However, if as part of the sale you provide your customer with a printed copy of the electronically transferred information or a backup data copy on a physical storage medium such as a CD-ROM, your entire sale is usually taxable.
    For example, if your company sells canned (noncustom) software programs to customers who download them from a server, those sales are generally not subject to tax. However, if you also provide your customers with a backup copy on a CD-ROM, the entir e transaction is taxable. Similarly, if you transmit a stock (noncustom) database to your customer over the Internet and also provide a printed copy of the contents, the entire sale is subject to tax.
    For more information regarding the sale of computer programs and data processing services, you may wish to obtain a copy of Regulation 1502, Computers, Programs, and Data Processing.

    Software is considered intangible, a box with a disc in it is not.
     
  23. Ak8s macrumors newbie

    Joined:
    Mar 17, 2010
    #24
    I just bought an album and 2 apps and was charged tax on the entire purchase. I don't care though...death and taxes ya know. :rolleyes:
     
  24. silverblack thread starter macrumors 68030

    silverblack

    Joined:
    Nov 27, 2007
    #25
    Tax or no tax... Credit card vs. iTunes dollars?

    When you buy an iTunes card in store, don't you pay the taxes already? Is it possible that tax is charged when purchasing apps with credit card, but no tax with iTunes dollars?
     

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