PS4 - Paying unnecesary taxes?
My PS4 account has the address of New York. I bought a game and noticed that I had to pay taxes. I researched that people from there are needed to pay taxes when buying online according to law. The issue is, im not from there, im from Mexico, and there are friends who dont pay taxes here. Soooooo, should I switch to a place which doesnt pay taxes in the US? NOTE: Doing that is a way of "Tax Evasion" apparently. But im not from there. I use that address because games are cheaper in the US store.
- TStoddenLv 71 year agoFavorite Answer
Starting in 2019, ALL online stores that do a certain level of business annually (varies by state, but the majority of them are between $100,000 - $500,000 / yr. Some states may have transaction thresholds as well) MUST collect sales tax based on your residence.
There's only 5 states that have no sales tax: Alaska, Delaware, Montana, New Hampshire & Oregon.
If you choose to set your address within the US, you will want to set your address (with the proper ZIP CODE) to one of those states. Please be aware that purposely lying about your address (for billing purposes) can potentially be considered tax evasion for your country in terms of sales taxes or Value-Added Taxes (VAT's).
For Mexico (as your noted country), the "Impuesto al Valor Agregado (IVA)" (the national equivalence of VAT) is currently set at 16%. HOWEVER, without knowing the exact tax laws nor the enforcement of those taxes... I cannot provide accurate legal advice. Therefore, you should likely seek the advice of an attorney who's experienced in tax laws for your country... just in case the government starts digging into your finances for tax discrepancies (especially if you're spending multiple thousands).
Hope this helps.
- 1 year ago
It would only be tax evasion if you actually lived there. You could change your address to anywhere and it wouldn't really make a difference.
- Andrew ClementsLv 71 year ago
There are some US states that don't have sales taxes. I know Oregon is one.
You should change your PS4 account to one of those states.