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Be Aware: Potential for Unexpected Sales Tax after Check-Out.
AllenChicago [Avatar]
Senior Member Location: Chicago (USA) Joined: Jan 28, 2010 22:06 Messages: 151 Offline
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I just purchased Power Director 9 Ultra upgrade for $69.95 and much to my surprise found that $4.73 in sales tax was added to the final total AFTER I clicked on "SUBMIT the order and landed at the DOWNLOAD/INSTRUCTION page.

My Illinois purchase/shipping address is NOT listed as being one of the states where Cyberlink collects sales taxes, per this page:
https://store.cyberlink.com/DRHM/store?Action=DisplayOrderInformationPage&SiteID=clinkus&Locale=en_US&Env=BASE#q5

"Do I have to pay sales tax?
We charge applicable sales tax for orders shipped to California, Minnesota and Washington. Sales tax is automatically computed on both product(s) and shipping costs.

Pursuant to the Digital VAT Directive, as of 1st July 2003, European customers will be charged VAT (Tax) on all downloadable digital products and services, including software at 15%.

We will gladly credit sales tax for government institutions. Just fax us a copy of your tax-exemption form with an address matching your order's billing or shipping address at: 952-253-8760. Please include a copy of your receipt or your order number."

IMO, one of three things is the culprit here:

1. Cyberlink has not updated their list of taxable U.S. states on the FAQ.
2. Cyberlink's billing software made an error. (What I'm hoping)
3. Cyberlink is lining their pockets.

I'll get to the bottom of this via Cyberlink support, but wanted to report the unexpected taxation here in the forum as a "heads up" to soon-to-be Cyberlink product purchasers. They need to ensure that there's a few extra dollars on their Card or in their PayPal account just in case an unexpected tax is applied to their purchase, as it was to mine.

-Allen in Chicagoland


James Dotson
Senior Contributor Location: Tennessee Joined: Aug 24, 2009 20:40 Messages: 3066 Offline
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I am finding a lot of sites that I have done business with for years have started charging sales tax. I know in Tennessee everything is taxable. If I buy it out of state and bring it home I am supposed to pay TN sales tax. It is getting crazy. Hope you get it worked out. __________________________________
CORNBLOSSOM
Dafydd B [Avatar]
Senior Contributor Joined: Aug 26, 2006 08:20 Messages: 11973 Offline
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HI,
Digital River who are responsible for payment collection for Cyberlink and a huge number of other larger/smaller software companies is obilged to pay specific taxes.

As someone based in the UK with VAT currently at 17.5% and going up to 20%, the rate of Luxemburg's (I think) 15% VAT is ok thanks.

The issue is with Digital River (US Company) and tax compliance and less to do with CyberLink I feel.

Dafydd
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