Upcoming Sales Tax Changes for EVE Online Purchases in the USA & Canada

Going to be interesting if they charge me 9% tax (Oklahoma resident) given the tax rate for where I live is 5.75%.

As someone who has to deal with sales tax in RL for Texas, Oklahoma, and Kansas, I use:

Those might help some people.

:thinking:
A: Why would they charge you 9%? Where did you even get 9% from?
B: Oklahoma doesn’t tax the sale of digital goods. At all.

Okla. Admin. Code § 710:65-19-156

The levy of sales tax does not apply to:

(5) Sales of prewritten computer software that is delivered electronically. For purposes of this paragraph, “delivered electronically” means delivered to the purchaser by means other than tangible storage media . [See: 68 O.S. § 1357(32) ]
(6) Sales of digital products delivered electronically including music, video, ringtones, and books.

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i know WV does.. or at least on some digital… PS used to never charge tax now they do.. same as other digital formats charging taxes now.

:+1:

West Virginia doesn’t tax the sale of digital goods; however, it seems they do now tax the sale of online streaming services. And their definition of “streaming services” is a little broad (per TSD-445):

A streaming service provider is generally a supplier of entertainment (music, movies, video games, etc.) or other content delivered electronically, usually by an internet, satellite or cable connection to the user’s computer, television, mobile device, or any other device that can be used to access the content. Streaming services are different than the sales of digital products. A digital product is a specific, identifiable item. For example, a consumer may buy or rent a movie at a specified price for the download and will then have bought or leased the digital product.
…
When a consumer purchases streaming services, the consumer has generally bought access to curated entertainment content in the streaming service’s catalog, but has not bought a right to any one specific digital product.

• All sales of streaming services in West Virginia are subject to sales and use tax unless there is a specific exception or exemption outlined under West Virginia law.
• There is no sales tax exemption regarding the provision of streaming services in West Virginia. Accordingly, streaming services are subject to the West Virginia Consumer Sales and Service Tax and Use Tax.

So for West Virginia residents, I suppose you might have to pay sales tax if WVTD considers a game subscription a “streaming service.”

The 9% is based of the link they provided in the OP.

But thank you for getting the statue that shows they are not suppose to tax for digital. Note made on the statue so I can watch it for possible future changes.

That is the combined rate of state sales tax (4.5%) and average local tax rate (4.505%) in the state of Oklahoma. It’s not applicable on an individual level. Obviously, your local tax rate (1.25%) is lower than the state average if you’re paying a combined 5.75%.

Except this is no extra work at all for a company of this size. The simple fact is that they could have ate the cost in Canada, but they don’t want to because they are too greedy that’s fine, but you had better explain to me why in the HELL they are happy to enforce this “CANADIAN RULE” yet I can’t pay in Canadian dollars like I can at almost every other company?

Because it all boils down to one thing, CCP is greedy, full stop.

:roll_eyes:

If they weren’t doing it before, and they have to do it now, then it is extra work. Company size is irrelevant, they still have to file with the same 50 or so revenue agencies on a monthly/quarterly/annual basis (depending on the agency). And that’s a big PITA (I can tell you from personal experience). Either CCP has to do it, or they have to pay an outside company to do it.

:laughing: If you’re implying CCP is a big company, they’re NOT. 173 employees and $63.6m in 2022. Even by Canadian standards, that’s (barely) a medium-sized business (100-499 employees). By U.S. standards, CCP is on the small side of SME.

My, what a sense of entitlement you have, Grandma. Per a quick search, GST/HST ranges by province from 5% to 15%. Why should CCP take a 5-15% loss just so YOU don’t have to pay YOUR taxes. (Because that’s what sales tax is, YOUR taxes.)

Of course, even in your dream world where CCP “eats the tax,” you would still be paying the taxes (because by law, you have to), and CCP would still have to collect and remit those taxes. They would just restructure the price so what you paid in sub and taxes would be the same as what you payed before in sub alone. And that means they would not only swallow the expense to collect and file the taxes, they would also see their revenue reduced by 5-15% for Canadian subscribers. So, double screwage.

I question if that’s possible, but I’ll try.

A. CCP isn’t happy about it. They wouldn’t be doing it unless they had to. No business would. And,
B. You live in a democracy. As a Canadian, you (collectively) voted for this Canadian rule. That’s not CCP’s fault, it’s yours. [cue South Park’s Blame Canada]

This may sound a little harsh, and I don’t mean it as an insult to Canada or Canadians. In fact, a big part of my family is of Canadian origin, so I’m sympathetic (to a degree).

At 40m people, you’re a small body of consumers in the overall international market. Compared to the U.S. at 340m, the EU at 449m, or China at 1.4b, Canada is small potatoes. I don’t know how many EVE players live in Canada (the last number I saw was ~5%), but I would guess the reason CCP doesn’t transact in Canadian dollars is because that number is too small (relative to the overall playerbase) to be worth the trouble of processing payment in yet another currency.

EDIT to add:

Obvious solution to that last problem: make more babies and train them to be capsuleers.

I’M MAD AT CCP BECAUSE YOU SAID THIS. D: D: D: D:

Can CCP lower the initial costs for Canadians Please?
This becoming really expensive now. I don’t mind spending the RL cash but where does the increase end? Right now a 3 month Sub for Omega is $79.00 Canadian while only being $55.00 U.S. This is a huge difference.
please sort this out.

Why? Are Canadians somehow special? Do you bring more value to CCP and EVE that you should be discounted by virtue of your nationality?

Yes. It’s called the “exchange rate.”

A month of Omega time has the same value to CCP, no matter where you live. The difference in “cost” between Canada and the U.S. is a function of currency valuation. Your dollar is presently valued at US$0.72 or €0.63. Therefore, relative to Europeans and USAsians, you pay more in CAD$ to purchase the same value of goods and services in the international market. If your dollar increased in valuation, you would pay less.

This thread is mind-boggling. I’m not sure if the problem is entitlement mentality or simply a lack of financial knowledge. Do they still teach economics in Canada?

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Except your argument is totally wrong. Since the beginning of time you have to pay the same amount digit by digit in EUR as you do in USD. There is no exchange rate involved whatsoever.

Maybe do your research before first before you ashame yourself with unfounded statements and wild accusations?

Screenshots from today accessed from EU and US:

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The Euro has a much closer conversion rate to the USD than the CAD has to USD. Those screenshots really don’t prove anything.

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This. Also, CCP accepts payment in USD and I believe U.S. players comprise over half of the EVE playerbase, whereas Canadian players represent ~5% (both figures according to the last stats I saw from I think 2022). So if they wiggle a little on the pricing to normalize between USD and EUR, that makes sense.

The only one shaming themselves is you, with your raging self-entitlement righteous indignation (for some reason).

EDIT: I just realized you weren’t the one I initially responded to, so I’ll retract my comment about you being self-entitled. I don’t know that you are. Probably, though.

If i look at the conversion rates for the last 25 years for both Canadian and Euro to USD i come to a dfifferent conclusion.

Maybe you just looked at todays conversion rate and ignored the remainder of my comment: “Since the beginning of time”

10 year spread, Apr 2015 to present:

USD to EUR: 0.93 to 0.88
Floor: 0.80 (Feb 2018)
Ceiling: 1.04 (Sep 2022)

CAD to EUR: 0.68 to 0.63
Floor: 0.63 (Apr 2025)
Ceiling: 0.69 (Nov 2024)

There is not a wide historical variance in either USD or CAD to EUR.

Same 10 year spread on the Icelandic Krona (the real ISK):

USD to ISK: 136.98 to 128.62
Floor: 98.63 (Mar 2018)
Ceiling: 148.63 (Nov 2022)

CAD to ISK: 111.87 to 91.91
Floor: 72.24 (Jun 2017)
Ceiling: 111.87 (Apr 2015)

Wider variance, but CAD is consistently down relative to USD by ~20-30%. In the last 50 years, the only times USD and CAD have reached parity (+/-5%) were during times of U.S. recession (the mid-1970s and later in 2007-2008 and 2010-2013). Outside of those U.S. downturns, the USD is advantaged 20% to as much as 60% in Jan 2002 (I recall going to Ontario that winter on business, and very much enjoying the favorable exchange—I ate some fancy dinners on my meager per diem).

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Wrong. Very wrong.

A World of Warcraft account in Canadian is $21.99. In USD, it’s 14.99. In EU, it’s 12.99

That is an exchange rate. Also: Well done, EU!

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This is not a one party thing over another, it’s just what your state passed. Plenty of red states also tax digital goods and plenty of blue states don’t.