Originally Posted by
Jojoya
The price of a subscription is not changing. Currency conversion fees go to the banks and payment processors. Taxes go to the government, not the seller. The game company gets only the base subscription fee that they quote.
You've got a lot of other entities wanting to make money off your transaction with the game company and the game company has no say in the matter.
That's a good description of many government revenue services that taxes go to.
This isn't something to pin on SE. It's something to pin on your local government if they choose to tax digital game downloads.
It was really strange going through Google to find articles about which states tax digital game downloads and which don't.
Some have a narrow definition of what is a digital product and some have very broad definitions.
Some includes game downloads under digital products, some don't.
Some specifically exempt game downloads despite otherwise meeting the local definition of a digital product.
Some tax only digital game downloads (classing them as software) and waive taxes on all other digital products.
Government bureaucrats are very good at complicating things that should be simple for the sake of keeping a job. Businesses have no choice but to comply if they want to retain the ability to do business in those locations.