[Q] Google charging sales tax in Texas - Nexus 4 Q&A, Help & Troubleshooting

Ordered Nexus 4 from Google Play Store. They charged me sales tax but I live in Texas. The order shows it as being purchased from California and delivered to Texas. Called Google but their customer service could not give me answer. Has anyone else from Texas been charged sales tax? Did you ask for a refund?

Isn't the state sales tax in TX 6.25%, I assume that was what you were charged and should have been charged.
Despite most peoples thinking, online orders are subject to local sales tax, most of the time the retailer wont collect tax for online orders since the state wont bother to try and collect it (not worth their time and effort to collect on small dollar amounts with no easy means of tracing them). Google will collect the sales tax regardless, the only way they wont is if you don't have a state sales tax (NH, DE, etc). A lot of times companies will also only collect the tax from out of state purchasers if they have a company presence in the state the item is being shipped to (it's easier for the state to collect if from them if they have an company office in said state).
Either way, buying goods out of state does not exempt you from paying you local state sales tax, if you have not had to in the past on online orders, consider yourself lucky, it wont always be that way, as online shopping becomes more popular with larger dollar amounts the states are taking notice and making the retailers collect the tax from the customers.

jakejm79 said:
Either way, buying goods out of state does not exempt you from paying you local state sales tax
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Tell that to google(among others) who ships their profits offshore to avoid paying local taxes.

peachpuff said:
Tell that to google(among others) who ships their profits offshore to avoid paying local taxes.
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If you Nexus 4 was to be shipped 'offshore' you could file for an exemption certificate with your local state, provide said certificate to Google and you wont be charged sales tax. If you are a resident of a state you are obligated to pay and abide by taxes and laws for said state, there are loop holes that you and businesses (Google) are free to exploit if you so wish.

I paid sales tax 8.25% and I'm from Texas. With that said you may not always get charged sales tax when you buy online. Because online merchants are only required to charge sales tax if they have a branch of business in your state. I found this out by talking to Amazon. If I buy from amazon and the item is sold by Amazon they charge me sales tax because they have a storage facility in Texas(but they are considering moving their storage facility). However, when I buy from another seller even if it is fullfilled by Amazon then I mostly only pay tax if the company selling the item has business connections in Texas.

I was charge sales tax plus shipping bringing my order up to 392.
sent from my jingly bells

6% sales tax is nothing compare to 13.5% sales tax in Quebec

Try 20% sales tax, AKA VAT in the UK. Luckily all prices in the UK include the tax and it isn't added on at checkout, unless you're buying from a business wholesaler etc.
Sent from my Nexus 7 using Tapatalk 2

donec said:
I paid sales tax 8.25% and I'm from Texas. With that said you may not always get charged sales tax when you buy online. Because online merchants are only required to charge sales tax if they have a branch of business in your state. I found this out by talking to Amazon. If I buy from amazon and the item is sold by Amazon they charge me sales tax because they have a storage facility in Texas(but they are considering moving their storage facility). However, when I buy from another seller even if it is fullfilled by Amazon then I mostly only pay tax if the company selling the item has business connections in Texas.
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Not entirely accurate re: Amazon in Texas. Amazon never used to charge, but they came to an agreement with the state government in May 2012 to begin taxation here, with the state receiving an agreement from Amazon to open a distribution hub employing a couple thousand people here in the state. Compared to a lot of states (where Amazon will begin charging sales tax if they don't already and WON'T be enjoying job creation), our elected officials actually did pretty well.
Cheers!

Correct, sales tax is meant to be charged regardless of if there is a business presence or not. It is just a lot harder for the states to enforce collection of it if the company has no ties to the state.
A lot of states are starting to realize the lost revenue and will be making the merchant collect tax regardless of business presence or not.
I expect the large merchants (I.e. amazon) to be the first to be hit by this

Related

Nexus Ones, selling for $650+ ON EBAY!?

Why are people purchasing Nexus ones for $650 on ebay when they could be purchasing it straight from google for $530?
Why are people doing this?
Is it out of sheer idiocracy?
Do they not realize where the sellers are getting these phone?
It's making me want to buy one from Google just to resell on ebay to make a $100 profit!
A fool and their money are easily parted.
Look at this,
it sold for almost $4k. I cannot believe this is real.
cgi .ebay .com /ws/eBayISAPI.dll?ViewItem&item=200431495643
(remove spaces)
some of the bids are fake just to raise the price up to tempt buyers.
Mostly for customers in countries where Google isn't shipping to yet and for others without a credit card.
If you want to risk shipping a phone to Nigeria , go for it.
Be careful, a lot of scams going on especially in Nigeria!
izmar said:
Is it out of sheer idiocy?
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FTFY.
And yes, I think some may be.. but as people said, probably a lot of scams, or people ordering overseas where Google isn't shipping yet...
Google is not shipping it where I live or study (Turkey/Bulgaria), so I bought one from eBay for $599.9 and I am happy with it. I am sure that there is so many "idiots" like me living on mother earth.
izmar said:
Look at this,
it sold for almost $4k. I cannot believe this is real.
cgi .ebay .com /ws/eBayISAPI.dll?ViewItem&item=200431495643
(remove spaces)
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according to the description, a lot of 5 (phones) were sold for about $750.00 each, totaling $3.8K. still a fairly steep price to pay.
I got mine for $760AUD ($680USD at the time) shipped via FedEx Express, from an eBay seller - simply because Google weren't accepting orders from Australia. Was happy to pay that much for a phone that wasn't even officially shipping to Aus yet - and I absoluetly love my phone.
Got mine for 599$, i think it's a fair price, since i cant buy it in Albania. I gambled a little with marking the shipment as 99$ so i didnt have to pay taxes.
Remember its not actually $530 from google. Its $530 plus vat and/or duty.
That means a phone to the UK for example would be $530 * 1.175 = $622.
If u then resold that phone to someone in europe u'd only be making about $30 for the trouble, minus shipping, exchange rate, paypal/ebay fees and taking a chance that his payment doesnt get retracted.
Even if you ship it to the US and reship you still need to add sales tax, and more expensive shipping. In actual fact $650 isnt too bad a price at all. Anything more is kinda stupid, especially considering how many peole are doing it now.
Having said that, ff you cant get it shipped to youre country you're better off using something like demailbox.com
They give you a virtual mailbox in the US, and reship it to you. Since they're based in delaware there's no US tax in that state, and free shipping to them because its in the US. That means you only pay the google price + reshipping to your country + the demailbox fee.

Nexus One Sales Tax!!

We’re writing in regards to your recent Nexus One purchase. There was an issue with the way the sales tax was applied to your order. When your order was placed, you paid taxes on the full retail price of the phone. However, you should have only been charged taxes on the sales price of the phone. We apologize for this issue and wanted to let you know that Google will issue a partial refund for the difference in the amount of taxes you were charged.
The refund will be issued to the debit/credit card used to complete the original purchase. To verify which card will receive the refund, please sign in to your Google Checkout account at https://checkout.google.com and click ‘View order’. The payment information for the order will be listed at the bottom of the order receipt.
If the debit/credit card used to complete your purchase has been closed, your card-issuing bank should forward these funds to your new account or mail a check to you for the amount of the refund.
If you have any questions about the refund, or if you need further assistance, please reply to this email and we’ll be happy to help.
Sincerely,
The Nexus One Team
Google Inc.
1600 Amphitheatre Parkway
Mountain View, CA 94043
You've received this mandatory service announcement email to update you about important changes to your Nexus One order.
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sooo google charged extra for sales tax;; who else got this email?
I do, can't wait cause i'm broke!!!
Apple would never do something like this, thanks for being so honest Google
well i just calculated it
these are my numbers
8.875% = NYC Sales Tax
529.00 = RETAIL Price
-250.00 = Discount
8.875% of (529.00 - 250.00) = $24.76125
not much of a refund i guess but its good they are being honest...
I got the same email today too
Do you guys live in states with a sales tax?
I got mine forwarded to AUS via oregon, which i don't believe has sales tax. I did not pay any import tax, So i am assuming that at no point did i pay tax for the phone, would that be right? or do they put tax on at the time of purchase?
I paid full price...529 + 46 nys tax.
Im assuming i dont apply.
A friend of mine and I both got that email today as well.
i presume this is for US only? not UK?
thanks
so, this doesn't apply to the people that bought it at full price or does it? i didn't get an email yet...
Got that email yesterday as well. I guess we were too excited to actually check the sales tax we paid?
I looked at the sales tax I paid through google checkout, and then cross referenced that through my bank account, and I paid the correct ammount. Hmmmmm, maybe a global refund of the 20+ dollars?
t0mmy said:
so, this doesn't apply to the people that bought it at full price or does it? i didn't get an email yet...
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It wouldn't apply because you paid the correct sales tax. Google was taxing for the full price when people were buying at the subsidized price.
Not in California ???
YES! 14 dollar refund?!?!?! Thats fine by me
Hmm.. I wonder why I haven't received this email. I just checked my google checkout receipt and it looks like I paid full tax amount on subsidized price too lol. I wondered why tax was so much but I was too excited to think more of it haha.
I get my Google phones for free, so nope! *sticks out tongue*
EdwardUong said:
Not in California ???
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Nope, even buying subsidized from a retail store (in california) they still charge you sales tax on the full price of the phone.. So no refund..
swgbex said:
Nope, even buying subsidized from a retail store (in california) they still charge you sales tax on the full price of the phone.. So no refund..
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Aww dammit. That's not cool. I was juiced about a reimbursement too. Guess I can kiss that goodbye
They should refund me the price difference between the touchscreen they used and a legitimate touch screen.

any places that charge tax just on final amount?

someone said bestbuy charges on prerebate amount, does radioshack do this too? I'd rather just buy local if I can but tax adds up.
That is probably something that is governed by state law, not just store policy. Best thing to do is ask first, but I doubt that two different stores in the same state could treat the tax differently.
boomerbubba said:
That is probably something that is governed by state law, not just store policy. Best thing to do is ask first, but I doubt that two different stores in the same state could treat the tax differently.
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That's correct...varies from state to state
California charges on the full amount of the phone... lol I feel bad for those people, they pay $300 for a phone and $80 in taxes
No sales tax for Californians at Wirefly.com. I already put my order in.

[Q] Best Buy - Sales Tax

I'm not sure how sales tax works in the USA, but with Best Buy do you pay the same sales tax in store and online (for pickup at that store)? The store I am thinking of is EVERETT MA, 162 SANTILLI HWY.
Yes. It'll be the same tax either way
Sent from my PC36100 using XDA App
Sales tax is the precise reason (or at least large part) why I decided to purchase my 32GB grey GT10.1 from Amazon and not Best Buy. Well, in full disclosure I decided to take my business to Amazon because I purchased a presale on the GT10.1 from Best Buy and the store GM guarenteed me I would have it on June 17. Low and behold come June 17 at around 7:00p I walked in to pick it up and they said "ooops, sorry but we do not have it yet and no, we have no way of telling when they will arrive." (Okay, I'm done ranting now).
Anyways I decided to go with Amazon because there was no sales tax and they guarenteed I would get it in 1 day with the 1 day shipping option. Sure enough my GT10.1 arrived 1 day later and the beauty of it is, the fastest shipping option from Amazon (1 day) was HALF the price of the sales tax I would have paid at Best Buy. Sales tax would have racked out at $45.43 and the 1 day shipping option from Amazon was $19.
Simple math, simple decision. That and I would MUCH rather give my business to a company that will actually follow through on their promise. Thank you Amazon.
Sent from my GT-P7510 using Tapatalk
I would rather pay the sales tax which in this case is $37.50 as I have the option of returning it to the store if there is anything wrong with it. The tablet is being brought back to the UK for me next week so I need the quick turn around, rather than having to post it back to Amazon etc.
RnFstRuckHrd said:
Simple math, simple decision. That and I would MUCH rather give my business to a company that will actually follow through on their promise. Thank you Amazon.
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Yeah, tax is the reason I ordered mine online...of course, I'm sitting here without my Tab right now because I had to return it and get another one.
I just spoke to Best Buy in the USA, and apparently they have international warranty, so their UK branches will cover any devices that go wrong. I wonder if this is actually true...
rjohmit said:
Yeah, tax is the reason I ordered mine online...of course, I'm sitting here without my Tab right now because I had to return it and get another one.
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Why?
Sent from HTV Evo 4G rooted with UnrEvoked, running CM7, OC'd to 1.11GHz, via Tapatalk Pro.
yes I use to think that way also. But if you have problems and need to return if for what ever reasons. Then it's a problem.
Hello everyone. I'm about to buy the galaxy tab and was also deciding to pay the Best Buy tax or not. I noticed everyone said they didn't pay tax on Amazon but I am being charged $44. Could this be because I live in NYC? I noticed Newegg doesn't charge tax. Has anyone purchased their tab from them? Thanks
Edit: Nevermind, I just googled Amazon's tax page and NY is subject to tax. Guess I'll buy it in Best Buy.
hshah said:
I just spoke to Best Buy in the USA, and apparently they have international warranty, so their UK branches will cover any devices that go wrong. I wonder if this is actually true...
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Err, better read the fine print on that "supposed" international warranty, as there's nowhere it stipulates that you can walk into a bestbuy say in the U.K or BestBuy Canada for example and they'll service it. Doesn't work that way.
The so called international warranty the sales person is salivating to sell you (also known as Geek Squad Black Tie Protection, GSBTP) is a REIMBURSEMENT PLAN, insured by an insurance company. YOU Re responsible for having it repaired at your cost and then contacting a 1-800-number to file a claim. Either mail or fax your paperwork over and you are then REIMBURSED for "qualified" repairs. Accidental or physical damages are not available for "international plans", so even if you're suckered into buying the plan, at least don't let them upsell you on the extra accidental damage protection.
How do I know all this? Used to work there at a store located in a high tourist area and used to weep inside at the foreigners suckered into "international warranties" that were all but useless, even on some products that CAME with worldwide warranties like some Asus laptops, Olympus and Casio cameras and so forth. I still know all the tricks and trade secrets.
Sad really.
lyun said:
Hello everyone. I'm about to buy the galaxy tab and was also deciding to pay the Best Buy tax or not. I noticed everyone said they didn't pay tax on Amazon but I am being charged $44. Could this be because I live in NYC? I noticed Newegg doesn't charge tax. Has anyone purchased their tab from them? Thanks
Edit: Nevermind, I just googled Amazon's tax page and NY is subject to tax. Guess I'll buy it in Best Buy.
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I think this should help you decide. This is from Amazon Q&A.
The amount of tax charged depends upon many factors, including the identity of the seller, the type of item purchased, and the destination of the shipment.
Items sold by Amazon.com LLC, or its subsidiaries, and shipped to destinations in the states of Kansas, Kentucky, New York, North Dakota, or Washington are subject to tax.
For sales tax purposes, electronically delivered products (e-books, e-documents, and electronically delivered software) are considered to be shipped to your credit card billing address.
No sales tax is charged when purchasing gift cards; however, purchases paid for with gift cards may be subject to tax.
Let me help you out a bit. If a store/retailer has a physical presence in a state it must charge sales tax so since best buy/ walmart etc have physical stores and shipping facilities in almost every state they have to charge sales tax online and at the store. With this rule online stores like newegg and amazon get away with not charging tax in states other then the ones they operate in. For example amazon has a large shipping and distribution center in Kentucky so it must charge taxes in that state.

[Q] Various tax structures?

Okay I think I've been reading around a bit too much, and I'm pretty confused about the taxes now.
I live in India and I want to get this phone from the US, either by ordering it online and paying customs + shipping, or by getting it through a relative who stays in the US.
Now I have a couple of questions.
1 - If someone from the US buys it from the google play store, does he have to pay any tax? Or is the $349 inclusive of all taxes?
2 - Does anyone know what the charges for customs are? Suppose my relative is getting about three phones, I'm assuming he has to declare the items. So how much tax and duties does he have to pay for them?
3 - Are there any other hidden costs that I should look out for?
Mohit12 said:
Okay I think I've been reading around a bit too much, and I'm pretty confused about the taxes now.
I live in India and I want to get this phone from the US, either by ordering it online and paying customs + shipping, or by getting it through a relative who stays in the US.
Now I have a couple of questions.
1 - If someone from the US buys it from the google play store, does he have to pay any tax? Or is the $349 inclusive of all taxes?
2 - Does anyone know what the charges for customs are? Suppose my relative is getting about three phones, I'm assuming he has to declare the items. So how much tax and duties does he have to pay for them?
3 - Are there any other hidden costs that I should look out for?
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1. The 349 doesn't include sales tax. Wherever you are shipping the phone to you have to pay extra for the sales tax. I got charged local tax rate, so it depends on where you ship it.
2. No idea. You should ask India Customs. In China we usually don't declare it because we are paying 100% which is ridiculous.
3. Yes. You pay for shipping. It's 10.5 for UPS two-day shipping. In total I paid ~33 for shipping and tax.
So in the US you are looking at paying 359.5 + whatever tax that is.
Refer to this for all the details:
http://forum.xda-developers.com/showthread.php?t=1963554
Hint look for my posts.
Sent from my LG-P999 using xda app-developers app
Mohit12 said:
Okay I think I've been reading around a bit too much, and I'm pretty confused about the taxes now.
I live in India and I want to get this phone from the US, either by ordering it online and paying customs + shipping, or by getting it through a relative who stays in the US.
Now I have a couple of questions.
1 - If someone from the US buys it from the google play store, does he have to pay any tax? Or is the $349 inclusive of all taxes?
2 - Does anyone know what the charges for customs are? Suppose my relative is getting about three phones, I'm assuming he has to declare the items. So how much tax and duties does he have to pay for them?
3 - Are there any other hidden costs that I should look out for?
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Click to collapse
1. Taxes are extra. Depending on where the person stays in the US, it might be around 390. Prices are never inclusive of taxes because they are location dependent.
2. He 'technically' has to declare them. However, he can carry two phones with him for personal use (like in the carry on) and another one in the check in. Most of the time they just let you go without paying anything. Then again, it depends on how well you are with your words Remember, its India we are talking about.
3. 349+Taxes is all you pay. No other costs.

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