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iPhone: sales tax when purchasing games with itunes gift cards ?

12-17-2008, 05:02 PM
#1
Joined: Nov 2008
Location: San Pedro (Port of Los Angeles), California, USA
Posts: 823
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sales tax when purchasing games with itunes gift cards ?

1. do you pay sales tax when you purchase a gift card at a store ?

2. when you buy the application, does it deduct say $0.99 or does it deduct that plus sales tax ?



3. when you purchase an app using credit card through itunes store, does that have a sales tax charge added ?


thank you ^_^

.(>^_^).> <3 <3 <3 ! ! !
12-17-2008, 05:04 PM
#2
Joined: Dec 2008
Posts: 6,509
1) I'm 99.9% sure you don't.

2) 99 cents.

3) No.
12-17-2008, 05:05 PM
#3
Joined: Dec 2008
Posts: 10
I fought with KMart over them charging sales tax on an iTunes card since I also pay tax when I purchase something. (Double tax).

I no longer by the cards at KMart now...other places do not charge tax on the card.
12-17-2008, 05:05 PM
#4
Joined: Sep 2008
Location: Colorado
Posts: 2,654
Quote:
Originally Posted by applesauce25r624 View Post
1. do you pay sales tax when you purchase a gift card at a store ?

2. when you buy the application, does it deduct say $0.99 or does it deduct that plus sales tax ?



3. when you purchase an app using credit card through itunes store, does that have a sales tax charge added ?


thank you ^_^
Gift cards work like cash. You don't pay tax when you buy them. The tax is charged when something is purchased. A gift card doesn't necessarily count as a purchase because it's more of an exchange. When you use the card, you're charged tax, just like using cash.

Yep. I've worked a lot of retail...
12-17-2008, 05:14 PM
#5
Joined: Nov 2008
Location: San Pedro (Port of Los Angeles), California, USA
Posts: 823
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oh neat

thank you, guys ^_^V

.(>^_^).> <3 <3 <3 ! ! !
12-17-2008, 06:48 PM
#6
Joined: Dec 2008
Posts: 382
ive had a couple giftcards and ive never been taxed outright when i made any purchase. but because of the whole *.99 prices i had seven cents left on my account and itunes gangstered it all from me. i was bummed for about fifteen minutes until i found a dime in my pocket so i came out ahead in the end. so i guess they dont charge you tax but they are miserly with the pennies.