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Microsoft is charging tax on converted points from before the conversion.

#1TheBlueStigPosted 10/1/2013 11:23:03 AM
Since the new sales went up this week I decided to use the last of my converted Points to buy Golf:Tee it Up, and Tony Hawk HD.

I had $11.55 balance, and the total of those games is only $9.98 but it cleared out my entire balance just to buy those 2 games....

First I bought the Golf game, that brought the balance down to $8.89 when it should have only brought it down to $9.06

Then I bought THPSHD, that cleared the balance completely, nothing left at all. A full dollar overcharged on the tax on that game alone....WTF ! ! !

WTF Microsoft, you told people that they would NOT be paying tax on converted Points but now you're OVERCHARGING on taxes???????

This is NOT the way to retain customers....

http://support.xbox.com/en-US/billing-and-subscriptions/account-management/microsoft-points-retire-faq

we will not apply taxes when you spend the currency that we add to your account at the time you redeem your Microsoft Points Card or code.


So they lied about not charging tax on converted points codes/cards.

Looking back through my account purchases it looks like they've been charging tax on converted points since the mandatory change at the end of August.
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#2glassghost0Posted 10/1/2013 11:26:39 AM
Must just be you, why don't you try contacting them before going crazy?
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#3TheBlueStig(Topic Creator)Posted 10/1/2013 3:51:05 PM
Bump to see if this is happening to anybody else.
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#4NeVaRmoorePosted 10/1/2013 3:54:13 PM
Were you able to contact Microsoft themselves on this issue? I have to admit I am curious about this myself.
#5SheepinatorPosted 10/1/2013 4:00:21 PM
Stig, is this in the US, and from currency which was converted from MSP at the time of the update? Yeah the way I read it that shouldn't incur taxes. Though to my surprise I have since after the update entered MSP cards which were of course converted to currency, and those should be subject to taxes, but they haven't been even though my State has a physical MS presence with retail store(s). Last time I bought something was two or three weeks ago when they had Blood Dragon etc. on sale.
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#6TheBlueStig(Topic Creator)Posted 10/1/2013 4:11:38 PM
Sheepinator posted...
Stig, is this in the US, and from currency which was converted from MSP at the time of the update? Yeah the way I read it that shouldn't incur taxes. Though to my surprise I have since after the update entered MSP cards which were of course converted to currency, and those should be subject to taxes, but they haven't been even though my State has a physical MS presence with retail store(s). Last time I bought something was two or three weeks ago when they had Blood Dragon etc. on sale.


Yes it's in the USA, and yes, it was converted by them, nearly $50 worth of Bing points converted to local currency.

I checked my purchase history and saw that I was taxed for every single purchase since the end of August. That still doesn't explain the full dollar overcharge on the last purchase or the fact that I can't see a balance at all anymore.

I just wanted to see if this was happening to anyone else before I call tomorrow to see what the hell happened.
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#7Oldskool_RulezPosted 10/1/2013 4:35:51 PM
That is strange Stig. I had redeemed a 1600 msp card not too long ago, and I wasn't charged any tax at all when purchasing games and DLC. Then again, I redeemed the code card after Microsoft did the conversion.

Serious Sam 3 was 9.99, no tax. Same with Zeno Clash for $1.00 and THPS Revert pack for 2.49, no tax. Come to think of it, I have never been charged tax, even when I bought MSP back then.

If I bought 800msp, it would cost me 9.99, no tax. So, I'm kind of stumped Stig, maybe it has to do with the state you live in?
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#8Oldskool_RulezPosted 10/1/2013 4:49:11 PM(edited)
Also, before the conversion I had 20msp. After the conversion I had $0.50 in my MS account(MS gave me an extra $0.25 for some reason). I bought an Indie game for $1.00, and was charged no tax. I even re-checked my bank statement to be sure, and it shows it only cost me $0.50 for the game, again, no tax. This was also points I had from before the conversion, even if it was only 20msp.

So yeah, no tax for me before the conversion and after. Or ever actually. Which gives me a question. Is there anyone else who was never charged tax when buying MSP directly through MS?
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#9beautifuldreamsPosted 10/3/2013 11:00:15 AM
i had 490 points before the transition update, added 400 points (code) online to my account a week after the transition started. then i finally got my xbox to an internet connection, and i was given $11.50.
i was taxed $0.47 on a $7.50. which means i was taxed on $5 of it. so i guess they used my newest point first that were taxable (?), and then used my older non-taxable points.

eh, who the hell knows. i think it's common sense to expect that microsoft has its head in its ass, and doesn't know what its doing
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#10iceman505Posted 10/3/2013 6:15:10 PM
Those that hated MS points are now reaping what they sowed, it was easy to get them tax free, and often times even at a discount on top of that.
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