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    Default I just got charged tax on Google Play cards. Is that right?

    I just happen to (finally) find Google Play cards at Target. They charged me tax on the cards. Is that normal? I don't recall paying tax on iTunes cards.
  2. #2  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    That's odd, didn't get taxed at Radio Shack

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    Mac.World's Avatar
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by Covart View Post
    Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.
    Maybe doesnt have a debit/credit card.
    Umm im not sure but dont we pay VAT on playstore purchases using the normal way too?

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Obama taxes everything!
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by FuzzyB View Post
    Obama taxes everything!
    OP said they got their merchandise from Target, not Obama.

    Please don't politicize these forums. If you can't resist, get it right. Congress creates the tax law, not the President.

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    funkylogik's Avatar

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    What about UK??? :P

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    P.s, anyone who grudges payin tax should live in a shack in the desert

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by funkylogik View Post
    P.s, anyone who grudges payin tax should live in a shack in the desert

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Are you askin out of concern or being a ****?

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Remind me again what the topic of this thread is....

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  12. #12  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    I'm pretty sure we charge tax at best buy too
  13. #13  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by Covart View Post
    Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.
    He's probably planning on gifting these cards. Isn't that the point of these play store cards in the first place?
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by PaulQ View Post
    I just happen to (finally) find Google Play cards at Target. They charged me tax on the cards. Is that normal? I don't recall paying tax on iTunes cards.
    Sales tax in the US is a state-by-state thing, so what is taxable in your state will differ from my state. Here in Maine, gift cards of that type are taxable.

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    It is state by state, here in CT gift cards cannot be taxed.

    People really do need to do their research before bringing politics to the forums.

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    LOL
  17. Thread Author  Thread Author    #17  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by Covart View Post
    Why are you bothering to go to a store to get physical cards. You can add money to your account directly from the Play Store. Much simpler then buying cards.
    Giving as gift to my brother who doesn't want to spend money on apps but still wants them. Thought it would be fun.
    funkylogik likes this.
  18. #18  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by funkylogik View Post
    Are you askin out of concern or being a ****?

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    Just wondering, and kind of being a little bit of a ****

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    Default Re: I just got charged tax on Google Play cards. Is that right?

    Easy bro. Go to the 1st post on the 1st page... even ive learnt that :P

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  20. #20  
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    In the US, you should absolutely NOT be paying sales tax on gift cards. They are not products for sale, merely an alternate form of currency accepted by individual or multiple stores. If you get charged sales tax on the gift card, then get charged sales tax on the item you buy with the gift card, you are essentially being taxed twice on one purchase...double taxation is illegal in this country (unless you're talking about inheritance...in which case double taxation is allowed for some reason).

    Getting charged sales tax on a gift card is like going to the bank, asking the teller to break a $20 and only getting $19.50 back because of sales tax.

    Let's look at an example: You get a $10 gift card at a store as a gift for Minerva. You get taxed, and have to pay $10.50 (5% rate). Minerva goes to that store, purchases something for $20. Tax is added, so she's paying $21.00. She uses the gift card, and has to pay the balance, which is $11. So the total paid is $21.50 ($10.50 from you and $11.00 from Minerva)...which means that the final tax on that item is $1.50...a 7.5% tax instead of the 5% it should be. That's illegal.

    In order to charge tax on the card itself, then the store could only charge tax on the balance of the final sale...meaning that Minerva would take $10 off the top, be left with a $10 charge, to which tax is applied...equalling $10.50...plus the $0.50 you paid on the initial card. Then the tax would even out. BUT the problem with doing it this way is that each state has a different tax rate, so if a gift card is acquired in one state and used in another, then state #1 is getting sales tax for an item sold in another state...and state #2 is missing out on some of the sales tax generated. It's a mess.

    So no tax is charged on a gift card. Tax is applied to the final sale so it only gets applied once and goes to the correct state.

    So to make a long story short, you need to go to Target and talk to a manager to get your money back.
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    Default Re: I just got charged tax on Google Play cards. Is that right?

    For another example of this, consider Costco and Sam's Club. If you are a business (restaurant, vendor, etc.) and you buy merchandise at Costco that you will re-sell from your own business, then Costco does not collect tax on that merchandise. You show them your tax-exempt number, and they don't charge you for that stuff (they're supposed to charge tax for anything that isn't going to be resold) because you will charge the sales tax when you sell it to the final consumer.

    For example, say you run a small shop. You go to Costco to get some supplies. While there, you get the following:
    • Box of individually wrapped snacks
    • Box of individually wrapped candy
    • 42 cases of soda
    • A TV for your customers to watch
    • A package of receipt paper for your cash register


    You are going to resell the snacks, candy, and soda, so you don't have to pay tax on them at Costco (you'll charge the tax when you sell it). You will, however, have to pay sales tax on the TV and the receipt paper because they are supplies, and you will not be reselling them. This ensures that tax will not be charged twice on one item...because double taxation is illegal.
  22. #22  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Perhaps the clerk made a mistake? I'm not positive. I live in CA so I just assume I'm going to pay crazy taxes on everything I buy

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  23. #23  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by KreepyKen View Post
    In the US, you should absolutely NOT be paying sales tax on gift cards. They are not products for sale, merely an alternate form of currency accepted by individual or multiple stores. If you get charged sales tax on the gift card, then get charged sales tax on the item you buy with the gift card, you are essentially being taxed twice on one purchase...double taxation is illegal in this country (unless you're talking about inheritance...in which case double taxation is allowed for some reason).

    Getting charged sales tax on a gift card is like going to the bank, asking the teller to break a $20 and only getting $19.50 back because of sales tax.

    Let's look at an example: You get a $10 gift card at a store as a gift for Minerva. You get taxed, and have to pay $10.50 (5% rate). Minerva goes to that store, purchases something for $20. Tax is added, so she's paying $21.00. She uses the gift card, and has to pay the balance, which is $11. So the total paid is $21.50 ($10.50 from you and $11.00 from Minerva)...which means that the final tax on that item is $1.50...a 7.5% tax instead of the 5% it should be. That's illegal.

    In order to charge tax on the card itself, then the store could only charge tax on the balance of the final sale...meaning that Minerva would take $10 off the top, be left with a $10 charge, to which tax is applied...equalling $10.50...plus the $0.50 you paid on the initial card. Then the tax would even out. BUT the problem with doing it this way is that each state has a different tax rate, so if a gift card is acquired in one state and used in another, then state #1 is getting sales tax for an item sold in another state...and state #2 is missing out on some of the sales tax generated. It's a mess.

    So no tax is charged on a gift card. Tax is applied to the final sale so it only gets applied once and goes to the correct state.

    So to make a long story short, you need to go to Target and talk to a manager to get your money back.
    As a business owner I'll state it again: IT DEPENDS ON THE STATE. Even how fees are handled on gift cards differs from state to state.

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  24. #24  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    Quote Originally Posted by natehoy View Post
    Sales tax in the US is a state-by-state thing, so what is taxable in your state will differ from my state. Here in Maine, gift cards of that type are taxable.

    Sent from my Nexus 7 using Android Central Forums
    OP basically said previously that itunes cards are not taxed. That means gift cards are not taxed, and his Google Play card should not have been taxed.

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  25. #25  

    Default Re: I just got charged tax on Google Play cards. Is that right?

    States like CT have begun passing laws barring gift card companies from charging insane "dormancy" or "inactivity" fees.

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