sales tax when buying apps online with iTunes card?

sales tax when buying online

Joined: Nov 27, 2007

I need to setup a US account to buy my first paid app (Keynote). I plan on bidding an iTunes card online, but don't know if Apple charges taxes, as I need to decide whether to get a $10 card, or a $15 card (for additional taxes).

Sales tax can be charged on intangible goods or services, depends on state law.

@.jessica I think they charge sales tax in every state that Apple has a physical location. If the state has a sales tax. I live in MI and get charged sales tax from iTunes.

Click to expand.

It does depend on state law, some states collect on internet purchases, when they really shouldn't be. It should only be applied to shipped physical goods, not software.

You need to understand the sales tax law before spouting off nonsense. I WORK FOR THE CA STATE BOARD OF EQUALIZATION.

I am in California, HEADQUARTERS to Apple and I don't get charged sales tax. You are wrong.

Oh and please don't use WIKIPEDIA as the basis for your argument


Products electronically transmitted to customers

Your sale of electronic data products such as software, data, and digital images is generally not taxable when you transmit the data to your customer over the Internet or by modem. However, if as part of the sale you provide your customer with a printed copy of the electronically transferred information or a backup data copy on a physical storage medium such as a CD-ROM, your entire sale is usually taxable.

For example, if your company sells canned (noncustom) software programs to customers who download them from a server, those sales are generally not subject to tax. However, if you also provide your customers with a backup copy on a CD-ROM, the entir e transaction is taxable. Similarly, if you transmit a stock (noncustom) database to your customer over the Internet and also provide a printed copy of the contents, the entire sale is subject to tax.

For more information regarding the sale of computer programs and data processing services, you may wish to obtain a copy of Regulation 1502, Computers, Programs, and Data Processing.

Software is considered intangible, a box with a disc in it is not.


Category: Taxes

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