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Why is tax on PC member subscription?

CerragCerrag Posts: 255
edited November 2019 in The Commons

I was just curious if anyone knew why tax is charged on a PC membership subscription when no goods are involved?  I became a member somewhere else recently and no tax was charged there, although I was charged tax for the items I purchased.  I understand being taxed on goods where there's an actual item involved but a membership isn't an actual item, it's like a virtual thing, so why would they impose a tax?

Post edited by Cerrag on

Comments

  • AllenArtAllenArt Posts: 7,175
    edited November 2019

    Your legislature has magnanimously decided that digital goods can be taxed as well ;). Yay. I'm not sure what states have it yet, but soon every state will. If you are not from the U.S. I would contact Daz and find out what the fluke was. I'm from Pennsylvania and recently rejoined the PC+ and was not charged tax that I'm aware, but I'm sure that's only temporary ;)

    Laurie

    Post edited by AllenArt on
  • LeanaLeana Posts: 12,764

    Because they tax everything that is sold?

  • CerragCerrag Posts: 255

    Oh yeah, I understand the tax on the virtual goods we buy from Daz, because we are actually getting a product that we download, but with a PC membership, there is no product - no goods to be downloaded.  I'm in North Carolina and there's a 7% tax on everything except food and when I buy anything digital, I am charged that 7% and understand the reason, but I've noticed that only Daz charges me sales tax on a non-product item (membership) when no place else does.  I'm thinking they have something set up wrong because non-products should'nt be charged tax - since it's a non-product and there are no goods involved.  Hope that makes sense anyway.  smiley

  • LeanaLeana Posts: 12,764

    You get weekly and monthly freebies with your membership, so one could argue that there are products included.

  • CerragCerrag Posts: 255
    Leana said:

    You get weekly and monthly freebies with your membership, so one could argue that there are products included.

    Yeah, but not at the time of purchase.  That would be like charging someone tax for future items that may or may not be downloaded and that's not right.  I really think it's setup wrong cause no matter how I try to think about it or justify it, it doesn't make sense.   I hope I'm not the only one wondering about this.  I just don't want to have to pay more tax then I should, no matter how small it may be, and on $35.00, it's about $2.45 which could go towards something I want.  But Thank you for the reply as I really do appreciate any input!  smiley

  • AscaniaAscania Posts: 1,855
    Cerrag said:

    Oh yeah, I understand the tax on the virtual goods we buy from Daz, because we are actually getting a product that we download, but with a PC membership, there is no product - no goods to be downloaded.  I'm in North Carolina and there's a 7% tax on everything except food and when I buy anything digital, I am charged that 7% and understand the reason, but I've noticed that only Daz charges me sales tax on a non-product item (membership) when no place else does.  I'm thinking they have something set up wrong because non-products should'nt be charged tax - since it's a non-product and there are no goods involved.  Hope that makes sense anyway.  smiley

    The tax is applied to goods and services. The membership counts as a service.

  • ChoholeChohole Posts: 33,604

    We are closing this thread now that the question has, as far as possible, been answered. If you wish further information you probably need to open a support ticket.

This discussion has been closed.