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EA and sales tax

Discussion in 'Off Topic' started by Capn Kranky, May 25, 2011.

  1. Capn Kranky

    Capn Kranky Guest

    Okay ... before everyone gets a head of steam up let me explain. I know why EA allegedly instituted a sales tax or transaction tax on UO subscriptions. Apologies in advance to those outside of the US borders as this is not geared toward you ... but feel free to chime in!

    I just read an article on ArsTechnica where there is debate about the Feds setting guidelines for states to tax downloads from the 'Net. Uh ... yeah.

    Linky to article

    One part of the article caught my attention and bold, colored or underlined stuff is my area of focus.

    Now, unless the ruling was overturned and I haven't yet spotted it, my question(s) is/are:
    1. Is EA a retailer?
    2. In each instance where a state tax is levied, does EA have buildings/offices in that state?

    Example of when tax can be billed based on this: Virginia
    We know that EA and/or subdivisions have brick and mortar presence, therefore players with addresses within the state may be taxed.

    Example of when tax may not be billed: New York State
    I have heard nothing that EA has any presence within state lines, thus New York residents should not be taxed. Or at least there is some level of weasel-room for not taxing subscriptions.

    NOTE: It should be noted that the present tax percentage as levied for NY is NOT correct for all venues within the state and in fact is twice what the state tax levy actually is for sales tax (4%).

    Discuss ... and I REALLY hope a mod could direct EA to peek at this one.
  2. Aran

    Aran Always Present
    Stratics Veteran Stratics Legend -A-

    Apr 1, 2000
    Likes Received:
    Can't be compelled to collect != Can't opt to collect
  3. Capn Kranky

    Capn Kranky Guest

    right ... but as I recall at the time, we were told that EA legal stated that they should be collecting sales tax even on the service itself. Also I believe they decided that based upon pressure from several states to do so. New York was not one of them.
  4. Heh!
    wasn't "allegedly" they DID start charging taxes >for the STATES< which set the differing rates ...

    You be looking for FEDERAL proposals and current status?
    I'm pretty sure you'll find that those would be >in addition to< any state rates ...
    just saying

    hmmmmm ... first thought would be to contact an Ebay professional ...
    Ebay has a little widget that calculates it for the buyers sellers
    and or limits it to states/countries that certain things >won't< be sent to.

    contact EA >directly<


    :thumbsup: found! :danceb: