sales tax when buying apps online with iTunes card?

[Soulcrux]

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?

No. I use a credit card for all my purchases and I am not charged tax for iTunes. So, again, it's based on state. Just buy a $15 card (that's the lowest they come in anyway) and if you DON'T get charged tax, just buy a couple cheap apps with it. Air Video is 1.99 I think.

 

[citi]

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?

There is no tax on gift cards. You pay the tax, if any, when you make the purchase.

 

[bytethese]

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.

Depends, I'm in NY. I bought a song and an app, only tax on the app.

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?

No tax on gift cards as it's not a purchase until you buy a product.

Nope. I have apps but no tax. Maybe the developers of the apps were located in your state?

Nope, EA Sports is located in California.

 

[MiguelS]

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.

So is it or not? Since you are the expert? Tax laws are always vague.

 

[Monk Edsel]

I'm in PA, and I'm taxed.

 

[crashnburn]

Where and how can I buy from iTunes without getting hit by Sales tax?

I travel in and out of the USA for work so have no permanent location like I used to in TX. (Thats my current billing address... which I can change to avoid tax)

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

I think it applies to all states. I was charged tax in NC and in CA.

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.

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.

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.

Interesting--just checked my receipts and no tax here.

I haven't been taxed on Apps, music, or tv shows here in CA.

No. I use a credit card for all my purchases and I am not charged tax for iTunes. So, again, it's based on state. Just buy a $15 card (that's the lowest they come in anyway) and if you DON'T get charged tax, just buy a couple cheap apps with it. Air Video is 1.99 I think.

 

[Jeffrosproto]

I get charged tax on apps, but not music or videos (I live in MI). Also, in the past (before I had a credit card), I was double taxed (once on the gift card, once on the digital app purchases).

 

[nephron8]

sales tax

I am also doing same.
buying gift cards and buying through that.
which state does not charge tax?
or is it all state phenomenon?

thanks.

 

[Menneisyys2]

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!

If you're abroad or can create an account with a foreign card, you may end up paying less for the same program, depending on the US state you're in (VAT, which is ALWAYS charged by Apple, depends on this) and the currency exchange rate.

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I am also doing same.
buying gift cards and buying through that.
which state does not charge tax?
or is it all state phenomenon?

thanks.

I have a HI (fictive) snail mail address. I pay 5% VAT for the apps / movies I purchase thru the US account. With my European (true) one, I end up paying a little less for stuff but there are a lot of stuff (think of Electronic Arts' region-specific rebates) not available in the local AppStores.