In app purchases have an extra tax or just a problem?

Why are there taxes

I bought a 15$ dollar iTunes card I was

Buying a in app purchase nba live moneile 14$ it said I have not enough money plz tell me why

How can they tax for things that do not exist?

Because they do exist. You can make use of them, and someone spent time making them. You need a device to be able to use them but they do exist.

Things like software, and digital media are what is known as Intangible goods or services.

Read your local tax law regarding "intangible goods and services".

You'll see they can be taxed.

Some reading here:

https://www.avalara.com/learn/whitepapers/identification-taxability-of-digital-p roducts/

KingZohaib wrote:

Why are there taxes

Because that's how governments make money to give citizens services. Apple complies with local Tax laws and charges the required taxes on all sales.

Otherwise they would be committing federal tax fraud and would go to jail.

KingZohaib wrote:

I bought a 15$ dollar iTunes card I was

Buying a in app purchase nba live moneile 14$ it said I have not enough money plz tell me why

It would seem whatever taxes are applied in your location add up to more than $15 dollars for the total cost of the app plus taxes.

Apple will apply any sales tax that is used in your location for all their products including app store and iTunes purchases.

So yes, you need calculate any local taxes on goods that are applied in your region.