Purchase in Canada

Adedhad

Hi Kabam, so I am in canada and there is no tax on gaming related purchases from dec 14 to feb. If i purchase any ingame deals or anything do i still have to pay tax or no? Please clarify this.

Furrymoosen

I am fairly confident that the amount of control that they have over that is somewhere close to or below 0%.

Adedhad

but apparently the tax goes to them, so they should be able to by pass that. since other gaming companies are able to do that.

Cap_Murica

Kabam has ZERO control over this. The stores are operated by Apple/Google and Xsolla, and they are the ones who collect the tax and file them. Where did you get the information that the tax goes to NetMarble (NOT KABAM)?

captain_rogers

Cap_Murica said:

Kabam has ZERO control over this. The stores are operated by Apple/Google and Xsolla, and they are the ones who collect the tax and file them. Where did you get the information that the tax goes to NetMarble (NOT KABAM)?

The tax goes to government right?

Adedhad

tax does not go to the government, apple/google pay charges a fee to kabam to use the platform, the tax goes to KABAM and they file a return every year.

Adedhad

Correction:
tax does not go to the government directly, apple/google pay charges a fee to kabam to use the platform, the tax goes to KABAM and they file a return every year to pay it back to the government.

Adedhad

@Cap_Murica so you mean kabam earnings are tax free?

JUSTRITCH

Kabam is a Canadian company So honestly they should be implimenting this Tax Free Service Canada has going on right now to the Canadian players.
🤷‍♂️

But I think they did say it had to be physical copies not Digitals.

Cap_Murica

Adedhad said:

@Cap_Murica so you mean kabam earnings are tax free?

Did you even read what I posted? I clearly stated that taxes are collected and filed by the marketplace facilitator (Apple) on behalf of the product seller (NetMarble, NOT KABAM)! I would recommend that you read up and educate yourself on the business models used by marketplace facilitators.

SummonerNR

As mentioned, Google/Apple/Xsolla will charge Sales Tax, VAT Tax, etc, based on location.

But I imaging, this is what is “PRE-SPECIFIED” by the localities.

If some country decides to have a Tax Exempt Day (or Month, etc), they may not be able to momentarily adjust Tax Collection for short periods of time.

(Like some states, here in U.S., will do Tax Exempt for time period before School year starts, to be able to buy school supplies and clothing tax free)

I wouldn’t think “DIGITAL GOODS” Tax would be suspended for Holiday Shopping (or whatever), because that would typically be PHYSICAL GOODS that you are buying for presents, etc.

But if Canada did that for DIGITAL Goods, did they inform every single payment processor around the world of their temporary suspension of the Tax ??? (rhetorical question)