Guild Wars 2

How will the internet sales tax affect the gem store? I read somewhere that online retailers will be required to collect state sales tax if they gross more than $1M. I’m not sure if that’s final.

Will gem sales be subject to this?

It Won’t pass, Don’t worry lol.

dinominator.9862:

How will the internet sales tax affect the gem store? I read somewhere that online retailers will be required to collect state sales tax if they gross more than $1M. I’m not sure if that’s final.

Will gem sales be subject to this?

Yes they will and it will pass.

Well, one of you is right. I guess it’ll depend on how much money the e-tailers put into lobbying against it.

Gems are technically intangibles, so I wonder if it’ll apply. For that matter, a digital copy of the game is intangible, too.

Well I already get charged tax on my gem purchases, so likely it will just mean that folks who haven’t been getting charged won’t have to fill out their use tax forms after it goes into effect. Ya’ll have been filing your taxes right?

This isn’t a new tax, it’s just the states foisting the cost of enforcing their local tax code on businesses who get no benefit from those taxes getting collected.

If they pass it then yes you will be charged. Just the same as you would now if the state you live in require it today (there are a few).

But is an intangible thing taxable? Gems are neither real nor services. And since they are intellectual property of ANet and always will be, there’s no real transfer of anything for the money.

Quoting something off of the NCoin page for Aion.

http://na.aiononline.com/en/store/ncoin/

“After clicking one of the available payment options and inputting relevant information, you’ll see an order confirmation page. Click the ‘Confirm Purchase’ button to complete your purchase. Depending on your location, there may also be sales tax included. After a brief moment to process the purchase, you’ll receive a receipt.”

So yes, proxy currency and monthly subscriptions can have sales tax applied to them.

Interesting. Thanks!

Sales tax is already levied for us when we buy gems. It’s an an additional $1 something charge when buying $20 of gems.

dinominator.9862:

But is an intangible thing taxable? Gems are neither real nor services. And since they are intellectual property of ANet and always will be, there’s no real transfer of anything for the money.

Think of gems as gift certificates — a placeholder for a pending exchange. A gift certificate to a retailer or service provider is taxable, or services provided from the GC can be taxed against the GC value. And since gem-purchasable items can’t be taxed, the final real money sale takes place in buying the gems. That’s where the sales tax would take place.

And paying for digital goods is basically buying a service. You’re paying to play the game or add service or value to it in the form of virtual items or enhancements, a categorical equivalent to paying labor charges on having your car fixed. It’s certainly taxable.

Goomby.9302:

Sales tax is already levied for us when we buy gems. It’s an an additional $1 something charge when buying $20 of gems.

What’s this “us” business? My state has no sales tax.

And the EU has VAT applied already.

So yes, if this every passes and you don’t currently pay sales tax buying proxy currency online, then you will.

Icepick.5210:

Goomby.9302:

Sales tax is already levied for us when we buy gems. It’s an an additional $1 something charge when buying $20 of gems.

What’s this “us” business? My state has no sales tax.

‘Us’ = my husband and I. I didn’t say “for everyone”

The sooner we get rid of these primitive geographically bound governments, the better.

I always wonder how the US manages to take ages to implement very basic stuff. Debating about whether something’s tangible or not has absolutely no relevance to the fact that a sale took place. As such, it can be taxed, plain and simple. Whether it should is another discussion entirely, but don’t forget that the government basically makes the internet work …

marnick.4305:

I always wonder how the US manages to take ages to implement very basic stuff. Debating about whether something’s tangible or not has absolutely no relevance to the fact that a sale took place. As such, it can be taxed, plain and simple. Whether it should is another discussion entirely, but don’t forget that the government basically makes the internet work …

The US government is not debating tangible versus intangible. The fact that folks misinterpret a business not charging them sales tax as not owing sales tax has nothing to do with the actual tax code. Many states require their residents to pay taxes on purchases made out of state, whether you did it over the Internet or by driving across the border. Very few people pay those taxes because it’s virtually impossible to enforce the law. So, congress makes a law requiring businesses to collect sales tax for localities that they have no presence in.

If taxes are ever implemented in the BLT to buy gems, my purchase of gems ends permanently, unless they increase the number of gems received to account for this.

Miss Pink Floyd.9730:

If taxes are ever implemented in the BLT to buy gems, my purchase of gems ends permanently, unless they increase the number of gems received to account for this.

It’s not ANet’s fault if they are forced to collect taxes.

Miss Pink Floyd.9730:

If taxes are ever implemented in the BLT to buy gems, my purchase of gems ends permanently, unless they increase the number of gems received to account for this.

If ANet starts collecting those taxes from you if the law is passed, they were taxes you were supposed to be paying anyhow.This is not a new tax, this is enforcing existing taxes that almost everyone “cheats” on because either they don’t know they owe the tax or they realize that the state isn’t going to enforce it for small purchases.

If the tax makes you angry, you need to get more involved in your local elections and encourage your elected officials to not participate. The law requires the states to provide software to businesses to calculate the tax based on zip code, so any state can opt not to have business collect the taxes by not providing the software. (like that would ever happen).