(I tried to put this question in arcade but they said it wan't relevant so I came here.) I just noticed, when buying a steam game with steam wallet funds, that it did not charge any sort of extra tax for the game. Not 10%, not 5%, just a rather nice 0% tax. As happy as I am for this, does anyone know how valve is pulling this off legally?
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I am assuming you live in the US.
It's because of this legal concept called "nexus". Essentially, it means that if the company doesn't have a physical location where you purchased the game, then there is no tax. Since Steam is an online platform with no physical locations to go and purchase games, there's no tax.
Michael
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Although the company that makes Steam is in WA state, so I wouldn't be surprised if they charged WA sales tax. – Andy Sep 22 '17 at 14:05
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so basically I, as a person from the Netherlands, am paying more for the same thing then you guys, since I am paying tax.(just checked and I see a 21% VAT on my last steam order). Ah well on the other hand, due to different currency the price is already different anyway, so guess it doesnt really matter in the end – Olle Kelderman Sep 22 '17 at 15:06