[BIZ] Taxes?

6 messages in this thread from mud-dev2 in 2008-07

  1.   Dana V. Baldwin <dbaldwin@pl...com> 07-08 20:05
  2.   Ren Reynolds <ren@al...com> 08-07 14:48
  3.   Andrew Budd <andrew.budd@ad...com> 07-18 16:45
  4.   Vincent Archer <archer@fr...org> 08-12 11:37
  5.   Michael Hartman <mlist@th...com> 08-13 18:01
  6.   Jon Mayo <jon.mayo@gm...com> 11-08 01:04

Dana V. Baldwin <dbaldwin@pl...com>

2008-07-08 20:05:38
Replies: Ren Reynolds
Do you charge taxes for your MUD/MMO? An "interesting" discussion has
popped up around the office wondering if we are responsible for charging
state sales tax to our customers if they are located in Texas.

Anyone have any experience with this?

AFAIK WoW is the only game that I can recall playing where I payed
taxes. They come in at $16.08 or some such where LotRO comes in at a
straight $9.99.

Any help or guidance would be greatly appreciated.
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Ren Reynolds <ren@al...com>

2008-08-07 14:48:25
On 18 Jul 2008, at 17:45, Andrew Budd wrote:

> Dana V. Baldwin wrote:
>> Do you charge taxes for your MUD/MMO? An "interesting" discussion has
>> popped up around the office wondering if we are responsible for
>> charging state sales tax to our customers if they are located in Texas.
>> 
>> Anyone have any experience with this?
>> 
>> AFAIK WoW is the only game that I can recall playing where I
>> payed taxes. They come in at $16.08 or some such where LotRO comes in at
>> a straight $9.99.
>> 
>> Any help or guidance would be greatly appreciated.  

> I believe to be taxed as a good (for sales taxes) it has to be "tangible."
> Typically it's "tangible personal property" or a service sold at "retail."
> In the end, there is significant variation in sales tax laws so it would
> really depend on what state your in, and a lawyer or accountant in that
> state would probably be the best person to   answer the question.  I do
> think that you and your customer both have to   have a taxable presence in
> the state in question in order for the state's   sales tax to apply,
> however. 
If you have customers in the UK then I think VAT will apply to
subscriptions - there is probably a similar thing for other EU
countries.

ren

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Andrew Budd <andrew.budd@ad...com>

2008-07-18 16:45:54
Dana V. Baldwin wrote:
> Do you charge taxes for your MUD/MMO? An "interesting" discussion has
> popped up around the office wondering if we are responsible for charging
> state sales tax to our customers if they are located in Texas.
>
> Anyone have any experience with this?
>
> AFAIK WoW is the only game that I can recall playing where I payed
> taxes. They come in at $16.08 or some such where LotRO comes in at a
> straight $9.99.
>
> Any help or guidance would be greatly appreciated.
I believe to be taxed as a good (for sales taxes) it has to be
"tangible."  Typically it's "tangible personal property" or a service
sold at "retail."  In the end, there is significant variation in sales
tax laws so it would really depend on what state your in, and a lawyer
or accountant in that state would probably be the best person to answer
the question.  I do think that you and your customer both have to have a
taxable presence in the state in question in order for the state's sales
tax to apply, however.

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Vincent Archer <archer@fr...org>

2008-08-12 11:37:54
According to Ren Reynolds:
> If you have customers in the UK then I think VAT will apply to
> subscriptions - there is probably a similar thing for other EU
> countries.
Subscriptions are classified as service, and taxed in the same category
as telephone service, and similar things. I think it's pretty much the
same category all over europe.

VAT applies to all european countries. Thankfully, you do not have to
maintain varied VAT: you use the VAT rates in the country you are
operating from, and you do not have to figure out in which category or
which rate you need to apply to your polish customers vs the one that
applies to your italian ones, for example. If you are in the UK, then
you use the UK tax code as a basis, and you're good to go everywhere
else.

Sales tax and the internet is steadily becoming more and more complicated
in the US, as the various state governments wake up and realize there's
lots of service money around. See the current NY vs Amazon strong-arm
battle about sales tax.

-- 
	Vincent Archer			Email:	archer@fr...org

All men are mortal.  Socrates was mortal.  Therefore, all men are Socrates.
							(Woody Allen)
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Michael Hartman <mlist@th...com>

2008-08-13 18:01:13
Vincent Archer wrote:
> Sales tax and the internet is steadily becoming more and more complicated
> in the US, as the various state governments wake up and realize there's
> lots of service money around. See the current NY vs Amazon strong-arm
> battle about sales tax.
I predict a seriously painful disaster looming from this issue. 
Governments can't tolerate the idea of people succeeding without them 
leeching off of it.




-- 
Michael Hartman, J.D. (http://www.frogdice.com)
President & CEO, Frogdice, Inc.
University of Georgia School of Law, 1995-1998
Georgetown University School of Foreign Service, 1990-1994
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Jon Mayo <jon.mayo@gm...com>

2008-11-08 01:04:51
On Wed, Aug 13, 2008 at 10:01 AM, Michael Hartman
<mlist@th...com> wrote:
> Vincent Archer wrote:
>>
>> Sales tax and the internet is steadily becoming more and more complicated
>> in the US, as the various state governments wake up and realize there's
>> lots of service money around. See the current NY vs Amazon strong-arm
>> battle about sales tax.
>
> I predict a seriously painful disaster looming from this issue. Governments
> can't tolerate the idea of people succeeding without them leeching off of
> it.
States look for revenue when they have a budget shortfall. NY and CA
have a major budget problems . NY's problem is only a $1b one, while
California has a $15b problem. (I'm so embarrassed). I'm going to
predict that CA attack the online sales and service issue much more
aggressively.

Can I host my servers in another country? I'd probably even pay
Canadian taxes if it means customers don't have to pay sales tax (and
I don't have to navigate some bizarre bureaucracy). Theoretically I
think NAFTA could protect a business that wishes to relocate hosting
to Canada.
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6 messages in this thread from mud-dev2 in 2008-07