Lt. Commander
Join Date: Dec 2007
Posts: 120
I purchased 2 $25.00 and 1 $12.50 lot of cryptic points and was taxed on them! I have never been taxed before and was wondering if anyone else in the us has been taxed for thier point purchases?
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 2
09-13-2010, 08:30 PM
I purchased some Cryptic Points, and you're right, there was a Tax added... To quote the Cryptic Purchase page...
Quote:
Prices displayed are not inclusive of VAT and/or other applicable local taxes. Purchases from European Union (EU). VAT is charged in accordance with the local legislation in each member state and varies from 15%-25%.
Now if you live in California, (like I do...) I could see California Sales Tax being applied. And Europe has its Value Added Tax mess to deal with...
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 3
09-13-2010, 09:19 PM
If you're in the United States you shouldn't be taxed for an online service such as the subscription or Cryptic Points. VAT is a European tax that includes online services but in the U.S. State sales taxes do not apply to these kinds of purchases and there is no Federal tax for them either. I suggest you take it up with Cryptic's billing.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 4
09-14-2010, 02:32 AM
Ya. If you have somehow managed to buy through european channels, the VAT is automatically applied, regardless of where you live.

Lame? Absolutely... Try being forced to pay it at all times.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 5
09-17-2010, 04:47 PM
Hey gang,

Just a heads up, we're looking into this. Thank you very much for reporting it.

Thanks,

Stormshade
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 6
09-17-2010, 05:47 PM
No need to hurry, Stormshade. VAT tax will be in the USA soon.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 7
09-17-2010, 06:06 PM
Today I was taking tally of my expenses for these few months and was noticing my C-Store Point purchases were taxed too. I chatted with Atari Billing support and the very helpful person detailed what all my purchases were for and so on, genercially gave me the "VAT and applicable local taxes may apply line" and then offered to open a ticket and escalate. I've already got a CS reponse:
Quote:
Prices displayed are not inclusive of VAT and/or other applicable local taxes. Purchases from European Union (EU). VAT is charged in accordance with the local legislation in each member state and varies from 15%-25%.
I know Cryptic is in California, and I'm in California, so internet purchases may have sales and use tax, but that's for "items" - I'm buying Cryptic Points. Basically it's like buying a Gift Card. Which isn't taxed in CA. I'm researching this further through the CA Board of Equalization (http://www.boe.ca.gov).

I'd also be curious what you pull up Stormshade. Thanks for checking in.
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 8
09-18-2010, 04:15 AM
VAT tax is a holy bul***it
Im from Czech republic (EU), but my government does not even know about STO..
So where the money end up? I do not think that Cryptic is being sent to the EU (or to my country).
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 9 Resolved
09-19-2010, 01:59 AM
I have had it fixed with cryptic and found out my info was incorrect on my account and the tax is being reversed onto my CC. Some states do have these taxes for online games...but since I live in Oregon I do not!

Actual message from cryptic:

"Hello, A refund for a total of $5.15 was applied to your credit/debit card or PayPal account. The refund process can take up to 10 business days depending on your financial institution. If you have any additional questions, please feel free to let us know. Regards, Cryptic Studios Billing Support"
Lt. Commander
Join Date: Dec 2007
Posts: 120
# 10
09-20-2010, 03:09 PM
FYI - I received another CS Reply on my ticket saying I was charged because I was in California which charges an Internet Sales Tax. I also received a reply from the California State Board of Equalization who have forwarded my claim to the Tax Policy Division for response. I'm told "Depending on current workload and staffing, they usually send a response within 2-6 weeks."

Not a big deal here. I'm not angry or anything, mostly curious about if it's true that CA is claiming that the sale and use of virtual items are taxable. As well as the whole buying CP being congruent to a gift card purchase. >shrug<
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