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Charged Tax with Gift Card purchase?

Why Am I charged tax when I buy the gift card and then again when I buy an item from the app store, I am being charged tax twice.


Ideas?

Xeon Mac Pro, Mac OS X (10.7), 64 GB iPad, 80 GB iPod Classic, 3GS, iPhone 4, iMac, Apple TV

Posted on Dec 11, 2011 12:50 AM

Reply
14 replies

Jun 14, 2017 6:40 AM in response to Carolyn Samit

This makes NO sense as the iTunes card is essentially a currency exchange. If I pay tax when I purchase the card, taxes have been paid up front for all subsequent purchases. If I am taxed again on purchases made with that card I am being taxed twice. This is not legal.


Hopeless to try to explain this to most, you're not alone Carolyn... but the iTunes card is not a purchased item, it is Apple currency. If the govt is pre-taxing my purchases when I exchange cash for Apple currency, Apple should remove tax duplication at the time of redemption.


Apple Support understood this after an hour on the phone several escalations, but claims they are required to tax individual purchases, and any pre-paid taxation is a state/provincial issue that must be taken up with them.

Dec 11, 2011 8:12 AM in response to Carolyn Samit

That does not answer the question... Why am I being charged tax twice. If I am being charged tax in the itunes store then the gift card at the retailer should have no tax. It would be like buying a gift card to Nissan for 10,000 and paying tax on the gift card and then using the gift card at Nissan and being charged again for tax. Your post clarifys nothing, I have been using itunes for years and of course I know that ALL PURCHASES ARE SUBJECT TO TAXES AND FEES.


Anyone else?

Dec 11, 2011 9:13 AM in response to djzapp

djzapp wrote:


That does not answer the question... Why am I being charged tax twice. If I am being charged tax in the itunes store then the gift card at the retailer should have no tax. It would be like buying a gift card to Nissan for 10,000 and paying tax on the gift card and then using the gift card at Nissan and being charged again for tax. Your post clarifys nothing, I have been using itunes for years and of course I know that ALL PURCHASES ARE SUBJECT TO TAXES AND FEES.


Anyone else?

I don't know the answer to your question, but I do know that it would best be posed to the tax authorities, they tend to reserve the last word for themselves.

May 27, 2016 10:31 AM in response to ed2345

Yes Some retailers like walmart, kmart who rarely sell those cards have system setup to charge tax and even you question that clerk usually stay behind the company, you must ask for store manager , if he will refuse to pay tax back and you have that recorded you must go to the local tax authorities report that and they will be penalized!

Charged Tax with Gift Card purchase?

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