Samsung seems to be overcharging sales tax
Samsung seems to be overcharging sales tax
So I've just ordered the newly announced Z Fold and Watch, and noticed after ordering that the sales tax on Samsung's invoice is higher than my local sales tax rate. My billing and shipping address are both in Seattle, WA, which has a state+county+city sales tax rate of 10.25%, but Samsung charged 11.275%.
Posting here (1) as a PSA for others to check their invoice, and (2) wondering if there's some obvious thing I missed.
The order is as follows (payment summary screenshot attached to this post):
- Galaxy Z Fold 512GB: $749.99
- original $1919.99, -$120 free storage upgrade, -$1000 for iPhone 14 Pro Max trade in, -$50 for reserve credit
- Samsung Care+: $167.30
- original $239, -$71.70 "limited time" discount
- Galaxy Watch 6 Classic 43mm LTE: $225
- original $449.99, -$224.99 bundle discount
So, subtotal is $1142.29 as expected. Sales tax in my location is 10.25% (verified here), so the sales tax should $117.08, but instead it's $128.79, $11.71 higher than it should be.
Oddly, it's off by exactly 10% (of the expected sales tax amount).
I contacted chat support and all they could do was file a ticket internally and tell me they'll follow up in 2 business days. Screenshots of chat support: https://imgur.com/a/bdAaot7
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Is it being shipped? Some jurisdictions require sales tax in the origin and destination.
Also sales tax is a nightmare 😭
It is being shipped. I'm not sure where the origin is, but if they're in an origin based state then I'd expect it to be the same 11.275% for everyone. Afaik CA is the only hybrid one where state, county, city are origin based and district is destination based. I don't think any of my 10.25% is a district rate, so even it that case it should effectively be the origin rate if I understand how this works correctly (which I probably don't because sales tax is really a nightmare)
if they’re in an origin based state then I’d expect it to be the same 11.275% for everyone
Is it based on the originating warehouse location or the corporate HQ? I know Samsung ships things from multiple locations here in Canada (but our sales taxes are based on where the customer is).
it's complicated 🙃 (see the bit about remote sellers)
That definitely seems unnecessarily complicated!