Why am I being charged sales tax on my subscription?

[imported_Lord Kynd]

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

Arizona - 8.10%
Connecticut - 1.00%
District of Columbia - 5.75%
Hawaii - 4.00%
Indiana - 6.00%
Illinois - 6.25%
Kansas - 7.00%
Kentucky - 6.00%
Louisiana - 8.75%
Massachusetts - 5.00%
Michigan - 6.00%
Minnesota - 6.50%
Nebraska - 6.50%
New York - 8.25%
New Jersey - 7.00%
Pennsylvania - 7.00%
South Carolina - 8.00%
Tennessee - 7.00%
Texas - 8.25%
Utah - 6.60%
Washington - 8.10%
Wisconsin - 5.50%

Canada

Alberta - 6%
British Columbia - 6%
Manitoba - 6%
New Brunswick - 14%
Newfoundland and Labrador - 14%
Northwest Territories - 6%
Nova Scotia - 14%
Nunavut - 6%
Ontario - 14%
Price Edward Island - 6%
Quebec- 6%
Saskatchewan- 6%
Yukon- 6%

ref ..
http://support.ea.com/cgi-bin/ea.cfg/php/enduser/std_adp.php?p_faqid=14659

 

[imported_Lord Kynd]

doesn this meen EA will reduce subscription fee's to account for the tax's ?
or will we lose more players because of this ?


and...
Connecticut - 1.00%
must be nice

 

[Smokin]

I think EA needs to adjust the Canadian taxes they have all been lowered by 1%

 

[Ezekiel Zane]

Yeah, my subscription, just went from $59.99 to $65.09 US on this last billing.

The taxman cometh.

Sucketh.

 

[Fayled Dhreams]

Heh !

Someone ELSE ... finally went to the KB with a question...

doesn this meen EA will reduce subscription fee's to account for the tax's ?
Why on earth would you think/ask that ... EA "might" consider raising rates to PAY for the service to handle the taxes though ...
(perfoming tax collection FOR the states requesting it)

or will we lose more players because of this ?
Again: Why on earth would you think/ask that? ^^those^^ that are that close to make or break ... got weeded out when GAS prices went up

 

[Ezekiel Zane]

Hmm...

WA is 8.1%

$59.99 x 8.1% is $4.86 for $64.85.

They billed me for $65.09. I want my 24 cents back. Hell I don't want to pay tax at all.

 

[Babble]

Does any other online game now charge that yet or is EA first?

And are all others tax evading then?

 

[cjc2797x]

Wahhhhhhhh!!!!! *sucks thumb and thinks 5 dollars is a lot of money* Wahhhhhhhh!!!!!

 

[Kurgan]

I was wondering why my charge went from 12.99 to 14.15..
Well 12.99 * 8.1% = 14.04
So whoo is getting the extra .09
Might not be much, but think about all the accounts * .09

IE 50000 * .09 = $4,500

 

[Chango Pelon]

Some states already had the sales tax I believe. When I went from an Okinawa APO to the States, it went up well before this one.

 

[Guest]

ouch. But at the end of the day, given the realities of running a government, it's only fair

At least we aren't being charged income tax on the gold.

(well, at least not yet)

 

[Mystic_Of_Cats]

Since when can you charge sales tax on digital, non-existent property?

 

[imported_Lady Tiger]

Dang I love the State of Montana...

 

[Guest]

Since my first phone bill.

Correction: since the first time I went to see a movie.

 

[Fayled Dhreams]

<blockquote><hr>

Since when can you charge sales tax on digital, non-existent property?

[/ QUOTE ]
Being digital and virtual ... doesn't MAKE it non-existant ...

wait ...

I must be imagining that I'm posting on stratics ...

I AM after all:

Your: Fayled Dhreams

 

[Sergul'zan_SP]

Did you think the government was going to let an opportunity to tax something fall to the wayside????

 

[Guest]

Welcome to the club. European players have been charged VAT for years now.

 

[Babble]

Actually they do for some part.
Ebay for example - The IRS only charges the powersellers as sales up to a few hundred euro a year are tax free.
And controlling hundred of thousands sellers is more something for a police state. If you check taxes of a big company right once you get more millions than from thousands of small ones.

 

[Smokin]

I am Canadian and in Ontario and I know for a fact the rate is 13%, now my biggest problem with this is where is my receipt for these taxes.

I want to make sure that those taxes I am paying are going to my Governments and not just EAs pockets. I don't mind paying taxes but they could be getting themselves in real big trouble with this move.

 

[Fayled Dhreams]

<blockquote><hr>

I am Canadian and in Ontario and I know for a fact the rate is 13%, now my biggest problem with this is where is my receipt for these taxes.

I want to make sure that those taxes I am paying are going to my Governments and not just EAs pockets. I don't mind paying taxes but they could be getting themselves in real big trouble with this move.

[/ QUOTE ]

Or WHAT ??

Canadian Bacon ?? (Widescreen) (1995)

heheheheheh

 

[Cogniac]

My state is not on the list. Score.

 

[Drunk'n Masta]

<blockquote><hr>

Dang I love the State of Montana...

[/ QUOTE ]

Second that!!!

For the 2 of us from Montana anyway.

 

[Guest]

*grins*........... Mine isn't on the list either!.......... Whoot! Any other Iowans?

 

[Guest]

Darn you New Jersey! I guess raising the toll price wasn't enough!

 

[Salmar]

Yay Iowa!

 

[imported_gawin]

*moved to other post*

 

[imported_GalenKnighthawke]

Only thing that really bugs me about that is that it appears to be retroactive to June of last year.

The actual amount isn't that great. The highest US tax on that list is 8.25%, this bringing the monthly fee to $14.06. Even the higher taxes in Canadian jurisdictions only brings the monthly fee to about $14.80 US.

Granted I'd really rather not pay this but.....It could easily have been worse.

I doubt EA will reduce its fees commensurately, to keep us actually paying $12.99. No business would. The Olive Garden doesn't. No bookstore does. Why should EA?

Going back to June of 2007 is gonna hurt though.

-Galen's player

 

[Guest]

<blockquote><hr>

Welcome to the club. European players have been charged VAT for years now.

[/ QUOTE ]
Not quite correct Magdelene. We are charged DOUBLE the VAT rate.

VAT is only 17.5%. EA decided to charge us 35% just for the heck of it. And this is the 8th time of asking .... Jeremy ..... can you explain/justify this?

 

[Kas Althume]

Well a 6 month plan for me is at 69.99€. I wonder why it is that high.
69.99€ * 1.4 = 98US$

6 month in usa/canada = 59.99$ / 1.4 = 43€

I wonder why i have to pay about 40$ taxes ... Anyone dare to explain?
Taking the 17.5% VAT we have it should be only 11$. What's with the other 29$?

 

[Guest]

<blockquote><hr>

Since when can you charge sales tax on digital, non-existent property?

[/ QUOTE ]

By naming it the Streamlined Sales and Use Tax. I don't think it will be long before all 50 states join the list, and maybe even the US provinces too. Some of the state legislatures simply have to iron out some of their tax codes before they join the band for free money! They finally found a way to tax our internet usage.

 

[Al Thorin]

I was about to ask how they charge tax on a service, then I remebered, yah, they'll charge you tax on anything.

Wonder if someone could lable UO as a food item. Don't get taxed for that here

 

[Sethblackmoore]

Yay!! Ohio is not on the list!! For once I'm not getting screwed by something! But wait...Ohio has state sales tax. But according to my checking account I was not charged tax. Oh well...sorry all.

 

[Jirel of Joiry]

*SHHHHHH* Oklahoma ain't taxing ....yet! Gotta be A first for a state govt that'd use bubble gum and a stick just to swipe a penny from a storm drain. J/K

 

[Guest]

Wonderful.

So you get taxed on your car, taxed on the gasoline to drive it to work and back, taxed on your work income, taxed on your home, taxed on your computer purchase, taxed on your electricty, taxed on your internet service and now, finally, taxed on services provided through your taxed internet service.

So now we are taxed on taxed internet service services?

Quite a sentence, and not a typo.

The good news is, a government can only get so big before it implodes. The bad news is, an implosion is not fun.

 

[imported_Mister E.]

<blockquote><hr>

*grins*........... Mine isn't on the list either!.......... Whoot! Any other Iowans?

[/ QUOTE ]


raises hand.

 

[imported_Lord Kynd]

sooo...
what happens if we use game time code's and use a false address or none at all ?

 

[Guest]

I was thinking along the same lines; using virutal cards, with virtual addresses for my virtual purchases.

 

[imported_Anakena]

<blockquote><hr>

Welcome to the club. European players have been charged VAT for years now.

[/ QUOTE ]

On top of paying in Euros

 

[the 4th man]

Dude, we live in a capitalistic society, it's all about money. You're suprised why?
yeah, it womps, but that's the way of life.

 

[Guest]

<blockquote><hr>

Hmm...

WA is 8.1%

$59.99 x 8.1% is $4.86 for $64.85.

They billed me for $65.09. I want my 24 cents back. Hell I don't want to pay tax at all.

[/ QUOTE ]Not to mention that in MY particular part of the county/state our sales tax is NOT 8.1, it is 7.9 ...

 

[Guest]

you would think people would just find out which states are taxin and change their acct info to state they live in a different state.
this may be illegal so im not suggesting it but thats what i think people may start doing

 

[the 4th man]

bump......want an answer.........or a good lawyer.

 

[Babble]

Don't want to pay it don't play.

I still claim they can charge for their services what they want.

Also I am not sure as people claim that it is tax fraud.
They just add an amount to the normal fee and are not collecting the tax.
Only states can collect tax and normal companies have to pay it - companies do not collect taxes.

 

[Guest]

Rite-Aid has pre-paid Visa cards free after rebate right now.

 

[Guest]

<blockquote><hr>

Does any other online game now charge that yet or is EA first?

And are all others tax evading then?

[/ QUOTE ]

Well so far blizzard has not stated anything about it, nor have i gotten charged any taxes yet from them.