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Enough of Outsourcing Customer Service, EA (And What's With Tax?)

Halister Marner

Slightly Crazed
Stratics Veteran
Stratics Legend
UNLEASHED
<blockquote><hr>

Man, that article sure makes it sound like we're collecting U.S. taxes from Canadians, doesn't it? I'm sure it's a misread - I believe we're collecting state/local taxes from all of them, and started because a bunch of states now charge them, but I'll see if I can get clarification on that.

(It won't be quick - this sort of thing has to go through lawyers. LOTS of lawyers.)

[/ QUOTE ]

That definitely doesn't sound right, we Canadian's don't take kindly to paying more taxes than we already have.
 
G

Guest

Guest
The 8.25% being assessed for New York is higher then my taxes in this area. My current sales tax is 4.5% state and 3.5% county. That adds to 8%.

6-month cycle = $59.99 USD
6-month cycle @ 8.25% = $64.94
6-month cycle @ 8% = $64.79

Okay ... $.15 doesn't sound like much, but the stated taxation rate is NYC, not other areas of NY State. I have 2 accounts <u>that will be over-charged</u> $.60 over a 1-year period.

I would like to see what you taxation program produces if you plug in the zip 13126. And I do not mind publishing that because it covers nearly 3/4 of the county so locating me physically is pretty difficult.

In Summation:
1. The quoted NY tax level is NOT all areas of NY State.
2. Quite a few areas of NY do NOT have local taxes (county or city). My Father lives where there is only a 3% county levy - 75 miles W of me.
3. The 8.25% is the generally accepted level for NY, but it is and has been incorrectly applied to residents outside NYC area.

I would like to see some serious numbers based upon the above information, as if that is cast in stone, then it is incorrect.

Thanks!
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

I assume Sam that your remarks are not directed at me since I am the one who is complaining about being lumped with US on this whole tax issue..


[/ QUOTE ]

I stand corrected, I did reply to your post but some comments in my reply were directed to the general topic and were not aimed at you specifically.

As for my rate.. I pay 6mos at a time and get the discount.

Safe Travels, Sam
 
B

beef steak

Guest
<blockquote><hr>

<blockquote><hr>

Ive never understood why they dont just bill everyone $12.99 USD and whatever it converts to in your own funds so be it

[/ QUOTE ]

Im paying $10 a month now so that would cause me to cancel a couple of accounts to make up the $3.00 diff.

How about this... if your state applies a tax and you live in that state, pay it.
If your country applies a tax and you live in that country, pay it.

If you dont like it vote for lower taxes or move? Sorry, but you can't expect a Corporation to absorb losses from taxes and international currency differences. That is not sound business.

And... asking me to pay more because your country/state is taxing your Internet is ridiculous. I dont get to vote in your country so I'm not gonna pay your taxes, sorry.

Safe Travels, Sam

[/ QUOTE ]

Sam, he's talking about this, not about charging EVERYONE the same tax regardless of where they live:


--------------------------------------------------------------------------------

*sighs*

And you think YOU are the one who gets screwed!

Take a look at this then! :

$12,99 = €8,95 &lt;= This is what we should pay!

€12,99 = $18,85 &lt;= This is what we pay!!

And as a dane (Denmark doesn't even have that bloody Euro!!) :

€12,99 = DKK 96,81
$12,99 = DKK 66,71

/rant




--------------------------------------------------------------------------------



Ive never understood why they dont just bill everyone $12.99 USD and whatever it converts to in your own funds so be it

_____________________________________________________________________

He's saying, charge the european's that don't have euro's their USD equiv of it. so denmark who doesn't go by the euro will only pay the $12.99 equiv in their currency. He's not talking about the tax here, I believe.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

He's saying, charge the european's that don't have euro's their USD equiv of it. so denmark who doesn't go by the euro will only pay the $12.99 equiv in their currency. He's not talking about the tax here, I believe.

[/ QUOTE ]

Ok, I see what you're saying. Im just wondering if you are taking into account bank charges for International money transfers.

EA charges ($)x, translates into (Euro)x, then EA's US bank and your bank tack on their currency transfer/conversion charges... and so you have a much higher payment than you expected.

My post was a reply to what I saw as a suggestion to a "one size fits all" rate. I see your point. I hope you're not being overbilled. It seems that you could request an itemization from EA that would show where the money goes. Good luck with that.
 
I

imported_Heartseeker

Guest
EA better not be charging us a American tax, damn it.

Clarify Jeremy Please.

I pay enough taxes in Canada thx.

If this will be EA's policy then EA will lose Canadian Customers.
 
C

Coranthe

Guest
I feel safe in saying the discrepancy will be found here...

<blockquote><hr>

The tax calculation will be handled on the back-end using a system provided to us by Vertex.

[/ QUOTE ]

... or at least that's where the blame will fall.
 

Silly Seadog

Sage
It's My Birthday
Stratics Veteran
Stratics Legend
UNLEASHED
<blockquote><hr>

More importantly, did you link them directly to http://www.ea.com &amp; http://www.uo.com so they could review the site and Gaming Service?

[/ QUOTE ]Arrrr, this here be the bestest solution. Sick the governmental-type bureaucracy on the corporate-type bureaucracy and let 'em fight it out! Loser walks the plank!! Aaarrrrrrrrrrr!!!


P.S. Hopef'lly they both lose and we win with lower monthly fees and taxes!
 

Surgeries

Grand Poobah
Stratics Veteran
Stratics Legend
<blockquote><hr>

Second, the Illinois DOR has no idea what's suddenly changed that you've all found it necessary to charge taxes, because there's been no such change in Illinois tax law.

[/ QUOTE ]

You are actually surprised that a State Government Employee didn't know about this?

Really?



You may want to speak to a different one...some actually may not know this...
 
I

imported_Hanna

Guest
<blockquote><hr>

<blockquote><hr>

Seems kinda fishy that someone would be able to tell you right away that it is not taxable with there being SO MANY tax laws in your State.

[/ QUOTE ]Yes, horribly fishy that someone that works for the Illinois Department of Revenue, after having gone back and forth via emailed communication, might actually be able to answer a question for me. I probably should have contacted the Illinois Department of Motor Vehicles.

You're right. I should probably just pay whatever EA wants me to simply because they say it's true. Because, you know, after not being taxed for TEN YEARS, I shouldn't find it suspicious that all of a sudden there's this "new" tax that the DOR doesn't seem to know about.

Who do you think I should have contacted when I didn't find applicable information on their website?

[/ QUOTE ]A company is not obligated to collect sales-taxes for a state where it does't have a physical presence. That hasn't changed, and EA is not an internet service provider. But it's ok, since it's illegal to collect sales taxes and not remit and report them all to the correct states, EA will probably be audited because of this.
 

Silly Seadog

Sage
It's My Birthday
Stratics Veteran
Stratics Legend
UNLEASHED
<blockquote><hr>

Ok, I see what you're saying. Im just wondering if you are taking into account bank charges for International money transfers.

[/ QUOTE ]Arrrrrr, methinks a truly global corporation should eat any such charges as a cost of doing the business (tho' me also thinks that more'n likely they be a-findin' a way to avoid 'em)!
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

(tho' me also thinks that more'n likely they be a-findin' a way to avoid 'em)!

[/ QUOTE ]

Perhaps by packin the gold in a chest and givin it to yer local friendly Pirate to take across the sea fer ya?!
 
U

uo addict

Guest
Well you Canadians deducted Canadian tax when I sold some software to a hospital in Quebec, so turn around's fair.
 
U

uo_kaladin

Guest
<blockquote><hr>

*sighs*

And you think YOU are the one who gets screwed!


Take a look at this then! :

$12,99 = €8,95 &lt;= <font color="blue"> This is what we should pay!</font>

€12,99 = $18,85 &lt;= <font color="red"> This is what we pay!! </font>

And as a dane (Denmark doesn't even have that bloody Euro!!) :

€12,99 = DKK 96,81
$12,99 = DKK 66,71

/rant

[/ QUOTE ]

I should have complained when the dollar was stronger than the Euro. Damn... I missed my chance.
 

Halister Marner

Slightly Crazed
Stratics Veteran
Stratics Legend
UNLEASHED
<blockquote><hr>

Well you Canadians deducted Canadian tax when I sold some software to a hospital in Quebec, so turn around's fair.

[/ QUOTE ]

That's because we can get away with it. No one *ever* suspects the Canadians.
 
G

Guest

Guest
Im glad I live in Oregon. Woots.

But i would say that allowing you to access there (EA's) servers would be providing you an internet service. All though, that can be more of a broad summery of what you would call service. Just like when the cable guys comes out to do a "service" call and he just looks at your cable jack and says its fine and leaves....ahh 45$ gone.

But its your money, do what you would like. But I dont think EA should have to, as much as it pains me to say this, absorb your $1.04. It IS your state that is charging you.
 
G

Guest

Guest
<blockquote><hr>

Can you also have them look at why people in the UK pay so much than any one else, even allowing for VAT at 17.5%?


[/ QUOTE ]
I have asked Jeremy this very same question no fewer than 7 times on various threads over the past months. I have never had a single reply.

In the UK we actually pay around 35% more for UO than anyone outside of Europe. Double the 17.5% compulsory VAT charge.

An answer as to how this can be justified would very much be appreciated.

US rate $12.99

What UK rate should be: $12.99 + 17.5% Value Added Tax = $15.26

UK rate £9.99 = $19.45

Where does the extra $4.19 come from, over and above the VAT?
 
R

RAEL of LS

Guest
I am not sure why you refer to Illinois tax laws regarding taxes charged by EA.
Most staes, if any do at all, yet, do not charge a sales tax for online... Obviuosly, Illinois is a state that does not require sales tax to be added to online purchases... The same is true for Texas... So far... most of the fees etc I have seen listed here are fees added to your phone bill or to your isp service...

Any sales tax charged by EA must be a requirement for thier home state or even municipal governments...


Sales tax can be applied to either end of the sale, geographically and in some cases could even cause double or triple taxation to occur... Original state where product sold from could charge sales tax and the state that the buyer is located in can chanrge sales tax and the feds can get an interstate tax...and if you live outside the US there is probably a fee for that too...

With 5 accounts I will feel the tax pinch more than others but really, for 10 years of tax free play I dont mind paying 8% of 12.99 for each account... that comes to 1.39 per account... Oooo... I may go broke over that for 5 accounts... [sic] I dont even care who ends up with the tax money as long as it is used in a way that makes the online world abetter place to play... (which it prolly wont... it will most liely go to some general fund used to pay for an offical trip to the carribean...)

my 2 cents...


RAEL of LS
 
B

Babble

Guest
Not illegal to make extra profit.
It is their game and they probably can even charge imaginary taxes.
Though they should not call them taxes in that case.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

Not illegal to make extra profit.
It is their game and they probably can even charge imaginary taxes.
Though they should not call them taxes in that case.


[/ QUOTE ]

Imaginary taxes would be fraud. The company has to claim the money is collected as a fee for services provided. Of course if they want, they can charge any fee they want - but trying to mask fees as a tax is illegal.

I'm wondering if the folks in Europe aren't also being billed a bank fee for the fund transfer. Most companies would just dump that on the consumer. Also, if EA uses a billing service for their overseas clients that service would lump it's fee in as well.

There are probably various disclosure laws that would entitle the consumer to see a breakdown of fees. Of course those vary and I guess EU countries would all fall under one set of rules while the poster from Denmark would be governed by their laws.

Safe Travels, Sam
 
B

Babble

Guest
Why would it be fraud. They charge for the services and can charge whatever they want?
If they say that persons from some states pay extra it may be unfair but no fraud.

They probably should not call it a tax, but an extra user fee. Though tax sounds cooler!



And what bank fee? 99% pay with a credit card anyway and I think that is the same in the us as in europe.
 
N

Nystle

Guest
I think the most disturbing thing about this whole ordeal is we were never publicly notified... If we are to be charged MORE, even if it's an added tax then the company has the RESPONSIBILITY to inform it's customer base, and do it well BEFORE we are actually charged. I love UO, and I love to play UO but I find this completely unacceptable and shows a lack of responsibility to the customer base. After everything many of us put up with, Poor customer service, months at a time without patches to fix even the simplest bugs, Lack of event content, the list goes on but the point I'm trying to make is the fact that after everything the very loyal customer base has put up with don't you think we deserve to at least KNOW that we are getting charged more? In fact I'd bet there's a law stating that we must be informed before that even goes into effect...

I also have to agree with Rad'Dian's assessment, it's pretty odd that after 10 years of not being charged a tax, all of a sudden we are.

Jeremy, I'd really like to know how something like this could have slipped through the cracks and never made it to a public announcement. If it was due to an irresponsible CEO, or poor customer service then fine let us know that throw up an apology tell us that it will be rectified and I think most of us would be okay. If it was something else I'm all ears as I'm sure everyone else is too... but to be perfectly honest the only reason that comes to mind is poor customer service.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

They probably should not call it a tax, but an extra user fee. Though tax sounds cooler!


[/ QUOTE ]

If a company claims that a fee is collected as a tax and it's not applied to a tax then that's fraud. You cant just call something a tax cause it sounds cool.

As for question regarding credit cards... EA or a third party, collects the funds in the foreign country. Then the money is transferred to the US. There is the fee. But without additional information it's hard to say where the money goes.

I do routine PayPal transactions from overseas. PayPal takes it's cut, then the bank takes a cut too because the money comes from overseas. Plus you have to factor in monetary conversion rates. It's not as simple as just buying something via credit card from a local business.

Safe Travels, Sam

*edited to add info
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
Didnt want to edit again so replying to myself...

Any company is going to pass the cost of business on to the consumer. If a US based company has foreign customers and they have additional expenses related to billing those customers, then the company will pass that expense on to those customers.

If the customer is in the US and a state or local tax is applied to the transaction, the company will pass that expense on to the consumer.

What I am saying to any individual who is paying more is this...

You may be able to request a breakdown of your bill to see exactly where the difference is. **If you think you should be paying $5 and you're paying $8, then I would expect that EA could give you a breakdown. You may even have local/state or federal consumer laws which apply that give you a specific legal right to see a detail of your bill but that's a huge area there that I can not address for a specific person.

For the person who has already contacted IL Dept of Revenue... if IL says you should not be paying any state tax for playing EA, then you should ask them what you need to do next. They may have a reporting procedure that might get them on your side in this issue. You will not get much help on Stratics towards that end, unless the Governor of IL happens to play UO and is a Stratics poster.

Safe Travels, Sam

**$5 and $8 used as an example, not intended to reflect actual billing rates.
 
B

Babble

Guest
Yes, both take their share, never heard of a bank that did something for free.
But clever companies include that in their fees.
And is Pay pal not an ebay spin off for people that did not accept or had credit cards?

At the moment it still looks EA charges ahead in case any of the states include the tax.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

And is Pay pal not an ebay spin off for people that did not accept or had credit cards?

[/ QUOTE ]

Dont know about the Ebay angle you mentioned. It turns out that using PayPal to have money sent from overseas was less expensive than a direct wire transfer (by the bank) or Western Union. But there are still fees involved.

Everyone wants their little piece of the pie.

Safe Travels, Sam
 
G

Guest

Guest
Hail: Well just move here to Las Vegas. I had to look up the word, "Tax" to see what it means........hehe :)
 
B

Babble

Guest
Yes I know but pay pal does not reach remote areas like Brazil or some really remote areas of Mexico.
Western union costs a fortune, yes - but they deliver money almost everywhere.

To avoid such fees I sent dollars sometimes in letters to people I bought things from the us.


Still if a multi million company like EA cannot figure out how to make a plan to get money worldwide then they better make console games.
 
B

Babble

Guest
Isn't that the place they built in the desert they thought the irs would never find anyway?
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

Isn't that the place they built in the desert they thought the irs would never find anyway?


[/ QUOTE ]

LOL, the IRS can find you better than the CIA... PAY YOUR TAXES OR THEY WILL GET YOU!!! Dog the Bounty Hunter has nothing on those IRS guys.
 
B

Babble

Guest
Not a lot you can do if they charge you except closing the account.
They can charge whatever they want anyway.
 
I

imported_mr.blackmage

Guest
they can't as a tax. They can make an announcement stating that the subscription fees are going to increase, but it is definitely against the law for them to arbitrarily charge whoever they want a non-existant tax.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

But it is not a tax. They may call it a tax, but it is just a rise in your subscription fee. They also do not say that they use it to pay the state tax.
They only state that it is a reason they charge more


[/ QUOTE ]

Not sure where you're coming from... read the OP... he was talking about a state tax being applied to his EA account... course the thread has covered a lot of ground since then... but we were originally talking about EA collecting a tax and billing it to the user.

Maybe re-read the whole thread as it seems to be going in circles here.

Safe Travels, Sam
 
I

imported_Ilysess

Guest
<blockquote><hr>

Well you Canadians deducted Canadian tax when I sold some software to a hospital in Quebec, so turn around's fair.

[/ QUOTE ]

This statement doesnt make alot of sense.... I could understand if you said you BOUGHT software from Canada and were charged tax, in which case you would simply have to fill out a form and you get your taxes back, just like people who cross the border to shop.

But SELLING software to Canada, you are the one who creates the bill/invoice etc and therefore you apply the taxes and they pay it.

Im not really sure what you are talking about taxes being deducted...taxes are an additional fee not a deduction.
 
G

Guest

Guest
RTLFC

<blockquote><hr>

Electronic Arts will be charging local and sales tax for Ultima Online subscriptions beginning on June 26, 2007. The reason for this is many U.S. states are implementing taxes on online subscriptions. The tax calculation will be handled on the back-end using a system provided to us by Vertex.

[/ QUOTE ]

Here is the Vertex Inc: Tax Cybrary - Internet Tax by State website:

http://www.vertexinc.com/taxcybrary/internet/state_by_state.asp
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
[quote...But SELLING software to Canada, you are the one who creates the bill/invoice etc and therefore you apply the taxes and they pay it.

Im not really sure what you are talking about taxes being deducted...taxes are an additional fee not a deduction.

[/ QUOTE ]

I'll let the OP clarify the Canadian issue but from my own experience...

When you run a business you are responsible for collecting sales tax. Some states require that you collect taxes for them on sales to customers in their state.

Example: I live in VA, sold custom software to a client in NC... had to collect NC state tax and remit it to NC. Even though my company is based in VA. I also had to fill out a retail sales tax form every month even though my work was project based and I only made a couple sales a year to clients in NC.

Different states have different laws and it's up to the business to comply with local laws and operate legally if they want to sell to customers in that state. Lots of states are looking to sales on the Internet as a new revenue source... online services too...

Fun eh?
 

Alvinho

Great Lakes Forever!
Stratics Veteran
Stratics Legend
<blockquote><hr>

Electronic Arts will be charging local and sales tax for Ultima Online subscriptions beginning on June 26, 2007. The reason for this is many U.S. states are implementing taxes on online subscriptions. The tax calculation will be handled on the back-end using a system provided to us by Vertex.

Please Note: This Tax implementation began on January 29th, 2008. The tax will be assessed on applicable accounts starting on this date.

The tax is only for customers with a U.S. or Canada billing address and will not affect APO customers. Tax will be calculated by zip code. Before you can finalize a subscription, you will be shown what is listed as the "estimated tax". This is listed as an estimate only for legal reasons. It is in fact the actual amount to be billed.

United States


[/ QUOTE ]

Sales of Goods Purchased Over the Internet:
In Texas, sales of goods over the Internet are treated the same as sales of tangible personal property through more traditional channels and, therefore, subject to the rules of nexus and Texas’s sales/use tax laws. Texas has interpreted nexus to include servers that reside within the state. For example, if a florist located in Texas takes an order on its Web site, which is hosted on a server in Texas, but delivery is made outside of Texas by a third party, charges for the order are subject to Texas sales /use tax.
 
B

Babble

Guest
So what happens if the information EA collects is wrong?
Does EA check where players live?
 
G

Guest

Guest
Alvinho, and according to Vertex's website, from which UO is acquiring its tax information:

<blockquote><hr>

Information/Software Purchased via Downloading from the Internet:
Information downloaded from the Internet is taxable as tangible personal property if the server from which the user obtains Internet access is located in Texas.

Source: Texas Tax Policy News, November 1996

[/ QUOTE ]

I am thinking that on an online subscription is considered information as far as these taxes are concerned.
 

Alvinho

Great Lakes Forever!
Stratics Veteran
Stratics Legend
Exactly

<blockquote><hr>

Information downloaded from the Internet is taxable as tangible personal property if the server from which the user obtains Internet access is located in Texas.

[/ QUOTE ]

EA's servers last I understnad are in California or Virginia dependant on which coast the shard is in, meaaning I am NOT connecting to a EA server in Texas


On the same note it says that If I am taxes then the information is Mine meaning that the Property I own in UO is Mine and not EA's if you want to get to brass tacks
 
F

Fayled Dhreams

Guest
no ...
The MONEY was your's, and the transaction ... is what was taxed ...
the exchange of Monies ... not why the money was exchanged ...
Your WERE'NT "buying" rights to the intellectual property ... you were paying access fees ...

If your case were true ... lot of realestate ....belongs to me ... back from when I was renting apartments ...


Your "brass tack" "got bent" ... didn't tack nothing ... thought it might ... didn't
 
G

Guest

Guest
Not exactly.

You are the user and if you are obtaining internet access, meaning your ISP, in Texas, which I presume you would be if you live there:
<blockquote><hr>

Information downloaded from the Internet is taxable as tangible personal property

[/ QUOTE ] according to Texas law.
 
I

imported_Ilysess

Guest
<blockquote><hr>

[quote...But SELLING software to Canada, you are the one who creates the bill/invoice etc and therefore you apply the taxes and they pay it.

Im not really sure what you are talking about taxes being deducted...taxes are an additional fee not a deduction.

[/ QUOTE ]

I'll let the OP clarify the Canadian issue but from my own experience...

When you run a business you are responsible for collecting sales tax. Some states require that you collect taxes for them on sales to customers in their state.

Example: I live in VA, sold custom software to a client in NC... had to collect NC state tax and remit it to NC. Even though my company is based in VA. I also had to fill out a retail sales tax form every month even though my work was project based and I only made a couple sales a year to clients in NC.

Different states have different laws and it's up to the business to comply with local laws and operate legally if they want to sell to customers in that state. Lots of states are looking to sales on the Internet as a new revenue source... online services too...

Fun eh?

[/ QUOTE ]

Aye I understand what you are saying Sam, if he sold to Quebec, he would have been required to collect the appropriate GST, PST or whatever other taxes they have in that province and remit it to the Canadian government.

What I dont understand is how he is referencing that HE is the one who got taxed.
 

Alvinho

Great Lakes Forever!
Stratics Veteran
Stratics Legend
<blockquote><hr>

Information downloaded from the Internet is taxable as tangible personal property

[/ QUOTE ]


And this is why they have on my phone bill under the internet section my connection fee, and my TAXES area in teh different spot. I pay my taxes on the internet useage to the phone company, now EA is also chargeing me the same thing as teh phone company is ludicris.
 

Sam the Scribe

Visitor
Stratics Veteran
Stratics Legend
<blockquote><hr>

...I pay my taxes on the internet useage to the phone company, now EA is also chargeing me the same thing as teh phone company is ludicris.

[/ QUOTE ]

Since it seems that EA uses a third party company to deal with local tax issues it is possible that a situation could arise where someone is getting double-billed. The OP expressed frustration that in dealing with EA he could not get connected to the department that could give him the answers he needs. I hope that someone from EA notices this thread and doesn't just help a couple folks out... but comes up with a link or email address that folks can use to get a detailed summary of the charges in their bill and get answers to these questions.

It really is difficult dealing with EA's internal system to get answers to questions and even though Jeremy has generously offered help to some of the folks who have posted here, some kind of follow-up with a more direct system would be the best outcome. Something that folks could find right on the UO home page, or on the My UO Accounts page.

Safe Travels, Sam
 

Elphlin

Adventurer
Stratics Veteran
Stratics Legend
Hi Jeremy,

The knowledge base article regarding the taxes shows the taxes required for Ontario residents to be 14%. As of January 1st our GST was lowered to 5%. If taxes are required to be paid for Canadian residents, the total tax for Ontario should be 13%, not 14% (5% GST + 8% PST).

Can you look into this?

Thanks.

Elphlin
 
I

imported_Lord Kynd

Guest
<blockquote><hr>

Here: http://www.vertexinc.com/taxcybrary/internet/state_by_state.asp#ILLINOIS

<blockquote><hr>

ILLINOIS

Internet Access
Charges Illinois does not impose sales tax on Internet access charges. Based on a recent General Information Letter (GIL), Internet access charges are not subject to Telecommunications Excise tax if the Internet Service Provider does not charge customers for the line or other transmission charges that are used to obtain access to the Internet.

Source: General Information Letter ST-97-0267-GIL

Sales of Goods Purchased Over the Internet
In Illinois, sales of goods over the Internet are treated the same as sales of tangible personal property through more traditional channels and, therefore, subject to the rules of nexus and Illinois’ sales/use tax laws.

Information/Software Purchased via Downloading from the Internet
Illinois does not consider the transfer of information over the Internet as a transfer of tangible personal property, therefore the charges are not taxable. However, as stated in IL Regulation Sec. 130.1935, "canned software is considered to be tangible personal property regardless of the form in which it is transferred or transmitted…". Therefore, charges for downloading software via the Internet are taxable.

[/ QUOTE ]

Pertinent information bolded.

[/ QUOTE ]all that bolded stuff tells you is , if you sell stuff and use the internet to do it you are suppose to be paying tax's ( ebay).

buyers AND sellers both pay tax's .

the second part tells you SOFTWARE hmm aka a program. this is not subscription to something you don't download but play.


fight them, tell them you pay tons of tax's while sittign in front of your computer..
energy tax's are high.. tax's on that chair your sitting on,,
grin
 
M

Mystic_Of_Cats

Guest
<blockquote><hr>


Here is the Vertex Inc: Tax Cybrary - Internet Tax by State website:

http://www.vertexinc.com/taxcybrary/internet/state_by_state.asp

[/ QUOTE ]
According to this site, nothing has changed for Pennsylvania. So how is EA charging Pennsylvanians 7% sales tax?

Also, by charging a sales tax for subscription, doesn't that also go against what they have set in the TOS about us not actually owning the account and items within the account? Would they not become "property" of the account owner by charging a sales tax?
 
F

Fayled Dhreams

Guest
<blockquote><hr>

<blockquote><hr>


Here is the Vertex Inc: Tax Cybrary - Internet Tax by State website:

http://www.vertexinc.com/taxcybrary/internet/state_by_state.asp

[/ QUOTE ]
According to this site, nothing has changed for Pennsylvania. So how is EA charging Pennsylvanians 7% sales tax?

Also, by charging a sales tax for subscription, doesn't that also go against what they have set in the TOS about us not actually owning the account and items within the account? Would they not become "property" of the account owner by charging a sales tax?

[/ QUOTE ]

Page Last Updated: April 2006 &lt;&lt; Your linky
KB by Lord Kynd &lt;&lt; more current

in part ..
Electronic Arts will be charging local and sales tax for Ultima Online subscriptions beginning on June 26, 2007. The reason for this is many U.S. states are implementing taxes on online subscriptions. The tax calculation will be handled on the back-end using a system provided to us by Vertex.

Please Note: This Tax implementation began on January 29th, 2008. The tax will be assessed on applicable accounts starting on this date.

yw ..
 
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