Shub Law is investigating claims that certain Amazon consumers are being improperly charged sales tax for gift cards they have purchased through Amazon.com. Amazon represents to its consumers that “no tax is charged when purchasing gift cards.” Despite this statement, however, Amazon has been charging certain consumers a sales tax in violation of their own policy.
HOW DOES AMAZON CALCULATE TAX?
Amazon, an online retailer, explains their tax calculation on their website as being a combination of rates. These rates, both state and local taxes, depend on where you live and where your order is being fulfilled:
The tax rate applied to your order will be the combined state and local rates of the address where your order is delivered to or fulfilled from.Amazon.com, “About US State Sales and Use Taxes.” Accessed on September 24, 2021
ARE GIFT CARDS SUBJECT TO TAX ON AMAZON.COM?
In a word, no. Or, at least, they should not be. According to Amazon’s own website, gift card purchases (not purchases made with gift cards) are not subject to the tax calculation provided above:
No tax is charged when purchasing gift cards; however, purchases paid for with gift cards may be subject to tax.Amazon.com, “About US State Sales and Use Taxes.” Accessed on September 24, 2021
Despite their own policy, however, some consumers have reported getting charged their state and local sales tax when they purchase gift cards through Amazon. Per their own policy, Amazon is not to charge taxes on gift cards. Yet, they continue to deceive consumers and break their own promise to them when they collect an improper tax on gift cards.
CONTACT US TODAY!
If you’ve been improperly charged taxes on a gift card purchased on Amazon.com, you have options. As experienced class action attorneys, Shub Law wants to give the power back to you, the consumer. We want to hear from you. Please fill out our form below or contact our office directly. You can email us at firstname.lastname@example.org, or call our office at 856-772-7200. Our class action attorneys are here to help you get justice! All consultations are free of charge.