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Since when do MMO's charge taxes on Monthly Subs?
Pyxx
Member Posts: 22
Zenimax just took out their 1st payment on my Subscription for ESO. Come to find out I wasn't paying $14.99 a month like they had stated. I'm actually paying $16.07 a month now. WTH??! Since when do MMO's charge Taxes? Not even NC SOFT or Blizzard Charge Taxes on Subscriptions. This is a little absurd. Anyone else get that same charge?
EDIT - Please read thoroughly before commenting on this Post. I have figured out that this was a Mistake on part of Zenimax for Taking my NA Account and charging me with an EU Paypal email address Prompting my Bank to charge me an International Fee. Thus charging me the $16.07. So Now I am Working on disputing the Overcharge and looking for a Partial Reimbursement or I am cancelling my account altogether. This is a Mistake that Zenimax made and needs to be Fixed. As per Zenimax I have my account set up as NA and should not have been charged that amount. So I'm just waiting for Account and Billing Services to call me back.
REVISED EDIT - This is not an Overseas Charge like I had originally thought, As time progressed on We investigated the situation and figured out that it was an Ohio Sales Tax that was applied and should not have been applied due to how the New Sales Tax Laws are being stated. So What it comes down to is how the Company in question is setting up their subscription plans and why some people are getting taxed and why others aren't.
SIDE NOTE - EA / Bioware - I was taxed on Cartel Coins also back in 2013 and they should not have done so considering the State Laws back in that time.
END RESULT - Having to fill out Tax Appeal forms for both companies most likely trying to get a refund. Just a shame I can't get a refund for the "Digital" Game itself.
Comments
Ever since you lived in a country or region that charges a tax on transactions like this. It isn't Zenimax making you pay the tax..
Well 1st of all; I know you don't know this, but I'm going to inform you anyways since you're the type of person who likes to Flame on someone. I'm a Disabled Veteran. I've served my time in the Army and I have gone to 2 Wars, I am, no longer able to do much of anything else. I am Wheelchair bound and blind in my left eye and I am unable to function like most human beings thanks to my efforts in the Wars. Now that that's out of the way.
Yes I will complain about $1.08 because I live in Ohio. Not a state that has an Physical Office as someone else puts it. I don't get charged from Blizzard or NC Soft. So why should I be charged from anyone else? They have State Taxes but not on Food.
Funny, I pay tax on my WoW sub in AZ, just another reason Blizzard is pure evil.
[mod edit]
Then direct your rage at Ohio.
Thanks for your service.
No, we don't.
Is Zenimax over in Europe? That would explain the difference in prices for conversion rate.
Edit - Nevermind 14.99 is 10.88 in Euros and if I went the other route it's 19.64. sigh.. Paypal just has it as a straight up charge.. doesn't give any details on any extra charges.
And living in Ohio doesn't make any sense if 2 companies don't charge any taxes and one does. But I'll get down to it.. I'm thinking it's an International Charge. The Email address they used says PaypalEU where the payment is sent to.
http://community.arcgames.com/en/news/star-trek-online/detail/3027003
Care to explain the VAT there .
See this thread on SWTOR
http://www.swtor.com/community/showthread.php?s=4b585eb6bf88cc0319ca545df69f982a&t=251898
In some games they collect it but don't split it up so you're unaware they are collecting it.
You need to be prepared. States having been complaining for years about their inability to collect sales tax on online transactions. We're moving in that direction.
Raquelis in various games
Played: Everything
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So, did ESO have a successful launch? Yes, yes it did.By Ryan Getchell on April 02, 2014.
**On the radar: http://www.cyberpunk.net/ **
EU law holds that for any online transaction, the company processing the payment *must* apply the sales tax of the customer's resident country (and not the sales tax of the country in which the company resides) and it must then pay that sales tax to the applicable authority.
http://www.ilsr.org/rule/internet-sales-tax-fairness/post-2241/
That being said, I don't get charged vat on my ESO subscription because Zenimax is not headquartered in an EU country, and therefore are not required to abide by this. However perhaps the state of Ohio, or whichever state Zenimax IS based in, does have a similar taxation policy.
I've had this happen to me in several mmorpgs now, annoying but seems to be the way things are moving. The states have been trying to accomplish this for a long time.
I cancelled before the first sub came due, so no idea if they would have charged me sales tax.
But one question to the OP, did you contact Zenimax customer support and ask them why?
"True friends stab you in the front." | Oscar Wilde
"I need to finish" - Christian Wolff: The Accountant
Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm
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[mod edit]
DW OP This is the first i am hearing about these sub taxes too. At least we now know why theres sub taxes.
No tax charging here in EU for Blizzard subsribers. But, some states in US have tax charge on subscription.
https://us.battle.net/support/en/article/tax-information
OP state is on the list.
^^^^
What should happen in the EU is that the company does indeed collect the tax and then it is up to said company to pay the tax to the applicable country. And the tax (and any other extras for that matter) has to be included in the subscription up-front so that the customer knows the full price they have to pay. (Different rules for businesses). Now whether Zenimax is abiding by EU law that is another matter .....I assume they know about it. Of course then you have the issue of where said company is resident and whether tax treaties exist between various companies etc. to ensure that taxes are paid on profits - but that may have a knock on affect on taxes due on subs.
In the US it is less clear - many would say a mess! Way back online purchases had no tax - this was a national policy decision intended to encourage the growth of online companies. However as trade has grown sales at bricks and mortar companies have fallen - leading to a reduction in taxes at State / County / City level. As a result State / County / City's have pushed to replace the fallen revenue bypassing laws requiring companies to collect a tax. In addition there have also been some moves to tax online companies whose headquarters are in a given State / County / City. Needless to say companies that do business across the US were faced with collecting taxes - at different rates - depending on where people live and keeping track of any and all tax changes made. So some companies have now opted to collect taxes on all transactions at a flat rate - making it much simpler for them - and passing on the tax to whoever. There was no requirement when I lived in the US for companies to tell customers up-front that a tax will be added.
I too live in AZ, and DID NOT get charged a tax for my WoW sub that ended as received in FEB 14
I lIve in the UK and have been paying tax on subscription MMOs since DaoC. Doesn't matter if I sign up to the EU or US versions of games there's always been tax applied. however most of the time it's included in the advertised subscription. It's odd that the advertised $14.99USD subscription price doesn't include tax regardless of which state you're in. Though I admit to not being educated in US tax.
Anyway, certainly in the UK tax is payable on most things, If i'm buying something I expect to pay tax, so it's no surprise to me. But I recognise it's not the case everywhere. I'd certainly contact their CS about why it's being applied on top of the advertised subscription price. Sounds like a mistake to me.
Endless of XoO
With all due respect, the OP may have been misinformed about his state's tax laws. That's one issue. [mod edit] You'd be surprised how many junk fees get added to credit cards by companies who are charging for additional services consumers didn't want or approve. And these are the big companies Unchecked, these fees add up to hundreds per year. And for anyone who doesn't question an unexpected fee, is probably paying a hell of a lot more per year than 1.08. To which I would find the irony in that somewhat comical if the above poster is paying such fees......(And probably is)