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AnsweredLockedEVGA Step up Taxes

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PH55103
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Re: EVGA Step up Taxes 2022/04/05 17:45:55 (permalink)
I think the confusion is that EVGA is collecting tax on funds they aren't receiving, which appears to be at odds with at least one state's sales tax rules!  With luck, we might hear from an EVGA employee on this.
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jasonmichaelh
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Re: EVGA Step up Taxes 2022/04/05 18:37:08 (permalink)
ty_ger07
It's not a promotional discount. It is a sale of one card, the purchase of another card, and sales tax on the full purchase price. They simply deduct the price of the sold card from the price of the purchased card, but you are still purchasing the new card at full price and paying the taxes. It isn't a promotional discounted price.

Would you rather that it is two separate transactions? Pay full price on one transaction. Then wait a few days to get your money wired to you from the sale of the card as a separate transaction. Well, that is what is happening. In your mind, think of it that way, except that EVGA removes the difference in dates waiting for the same total to clear the bank.


You keep saying it’s not a promotional discount, but when you’re selling the card for credit that you can only use at EVGA…you’re not exactly straight up selling your card.

To me, it sounds like a promotional discount.
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Re: EVGA Step up Taxes 2022/04/05 18:37:25 (permalink)
I only gave EVGA 256$  for the 3080, but they collected $78 in taxes, for the new card... They took my 2080 SUPER turned around and sold it as B Stock, making back $700.... Its a loophole scheme. EVGA only needs to reports the sale tax for the $256 collected because the $750 that i paid for the 2080 can be listed as a Discount.
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ty_ger07
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Re: EVGA Step up Taxes 2022/04/05 20:39:43 (permalink)
jasonmichaelh
ty_ger07
It's not a promotional discount. It is a sale of one card, the purchase of another card, and sales tax on the full purchase price. They simply deduct the price of the sold card from the price of the purchased card, but you are still purchasing the new card at full price and paying the taxes. It isn't a promotional discounted price.

Would you rather that it is two separate transactions? Pay full price on one transaction. Then wait a few days to get your money wired to you from the sale of the card as a separate transaction. Well, that is what is happening. In your mind, think of it that way, except that EVGA removes the difference in dates waiting for the same total to clear the bank.


You keep saying it’s not a promotional discount, but when you’re selling the card for credit that you can only use at EVGA…you’re not exactly straight up selling your card.

Sell it yourself, to someone else, and then buy the new card from EVGA. You will pay the exact same amount in taxes either way. No one is making you sell it to EVGA. EVGA just offers it as a service for convenience.

To me, it sounds like a promotional discount.

It's not. You pay full price for the new card. What is a 0.00000000% discount? Not a discount.

liud21
I only gave EVGA 256$  for the 3080, but they collected $78 in taxes, for the new card... They took my 2080 SUPER turned around and sold it as B Stock, making back $700....

Then sell it yourself to someone else. No one is making you use the Step-Up program. If you think EVGA is being too greedy, sell it to someone else who can flip your card for you.
Its a loophole scheme. EVGA only needs to reports the sale tax for the $256 collected because the $750 that i paid for the 2080 can be listed as a Discount.

That would be fraud. I do not believe that EVGA is doing that. Do you have any proof? Where is your lawsuit? The $750 credit that you received for the sale of the 2080 cannot be listed as a discount. What EVGA tells you on the invoice must match what EVGA tells the IRS.

PH55103
I think the confusion is that EVGA is collecting tax on funds they aren't receiving, which appears to be at odds with at least one state's sales tax rules!  With luck, we might hear from an EVGA employee on this.

I think the confusion is that people believe that they are not buying the card at full price, and therefore believe that they shouldn't have to pay the full taxes. But they are buying it at full price. Store credit from the sale of their old card is reducing the total that they owe; but store credit does not reduce the value of the card they are buying, nor the amount to pay in taxes. Store credit is not a promotional discount on the product's value nor tax exempt.
If you agree that the amount you owe for the new card is (New Card's Value - Credit from Sale of Old Card's Value), then you agree that the new card's value is still the value of the card. Therefore, you must pay taxes on that value. The value doesn't change after the simple math operation. The math operation is based on its unchanging value.
post edited by ty_ger07 - 2022/04/07 16:51:41

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Re: EVGA Step up Taxes 2022/04/12 09:17:01 (permalink)
I should ask our car salesman if we are getting charged extra tax for the leased car we are trading in tomorrow to use towards the new car.. all I know currently we are getting back 2k from that after all said and done.

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Re: EVGA Step up Taxes 2022/04/13 13:15:24 (permalink)
AHowes
I should ask our car salesman if we are getting charged extra tax for the leased car we are trading in tomorrow to use towards the new car.. all I know currently we are getting back 2k from that after all said and done.

Not sure about lease...
https://finance.zacks.com...hase-tradein-9018.html
https://www.nerdwallet.co...de-in-reduce-sales-tax


 
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Re: EVGA Step up Taxes 2022/04/13 16:14:31 (permalink)
The thing that is misleading, and EVGA Needs to correct if they are going to display it properly, is that they are adding the taxes, and then removing the cost of the old card that is being surrendered. EVGA SHOULD have the math shown in the order it is completed, and this has been mentioned and stated in the past, but the current display shows the New card - cost of the old card being removed + taxes added, and then shipping added to the total… what should be shown is cost of new card + taxes added, then the reduction in price from the old card (with taxes already included), and then shipping added on.

Either way, Taxes are NOT kept by EVGA, they are surrendered to the IRS, so the complaint needs to go to the person that is keeping the money. It is ILLEGAL for companies to charge taxes and then pocket any of the taxes charged, so EVGA isn’t getting anything for charging them.

Taxes are either held, or deposited, into a completely separate account, that is used to pay the state the taxes were collected for, when done properly so that the company doesn’t accidentally utilize funds that they are not allowed to utilize.
post edited by the_Scarlet_one - 2022/04/13 16:16:29
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Re: EVGA Step up Taxes 2022/04/13 16:39:50 (permalink)
Of course, EVGA is not keeping the sales tax. However, this does not mean that they are not collecting additional sales tax unnecessary. I am sure no state government is going to say no to more tax revenues, but I don't think EVGA is doing the tax collection properly. 


 
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Re: EVGA Step up Taxes 2022/04/13 19:58:07 (permalink)
It is up to EVGA to define the step up program as promotional, new card purchase, buy back or what ever. You can upgrade and save on an entire new card. Given the price brackets now it safes quite a bit and is a very nice program. You spend $500 instead of $2400 including tax. However, is 5-10% performance increase worth another $500?
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Re: EVGA Step up Taxes 2022/04/15 09:33:17 (permalink)
Emparus
It is up to EVGA to define the step up program as promotional, new card purchase, buy back or what ever. You can upgrade and save on an entire new card. Given the price brackets now it safes quite a bit and is a very nice program. You spend $500 instead of $2400 including tax. However, is 5-10% performance increase worth another $500?


Yeah why I never used the Step up program in the past decade.. never smart.

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Re: EVGA Step up Taxes 2022/04/15 09:59:43 (permalink)
Emparus
It is up to EVGA to define the step up program as promotional, new card purchase, buy back or what ever. You can upgrade and save on an entire new card. Given the price brackets now it safes quite a bit and is a very nice program. You spend $500 instead of $2400 including tax. However, is 5-10% performance increase worth another $500?


In the past, you could buy an inexpensive card, say a 2070, and step up to a 3090, which is way more performance and the cost was justified, and the only difference paid was sales tax, shipping, and MSRP differences. It was very beneficial for those that could not be online at launch, or had just purchased a card when a new card launched.

Unfortunately people found ways to severely abuse the program, buying gt1030’s and stepping up to 3090’s repeatedly, because there was no limit on how many step ups there could be, and EVGA changed the rules drastically to cut those abuses out of the program.

EVGA also use to only charge the difference in the taxes, after the old card was factored in, and that also changed, probably because EVGA got hit with a massive tax bill, and it isn’t EVGA’s job to absorb the difference to make the end user happy.
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Re: EVGA Step up Taxes 2022/04/15 10:03:10 (permalink)
Basically the house always comes out ahead in the end.

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Re: EVGA Step up Taxes 2022/04/15 10:07:22 (permalink)
AHowes
Basically the house always comes out ahead in the end.


:thumbsup:
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mdhaus
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Re: EVGA Step up Taxes 2022/04/17 22:05:38 (permalink)
As someone who understands tax law, this is what I'll say: EVGA does NOT need to be collecting full tax on the first sale, then an additional full tax on the Step-Up once the card is sent back in.  When they credit back the amount you paid for the first card, they are essentially allowing a "return" on the product....no different than what happens at any other store. And when that happens, it triggers a sales tax refund back to the customer.  There is absolutely nothing legally preventing EVGA from either refunding the tax paid (if you bought the card from them and they were the collector) and then charging the full amount on the Step-Up purchase...or holding on to the first payment and simply charging the difference needed to meet the tax requirement.  They are NOT dodging taxes by doing this, as when your "old" card later gets sold again, they will indeed be charging taxes on that transaction.
 
This is what other stores do all of the time.  At Best Buy, for example, they have a similar way for people to return items (such as hardware) and use the credit to similarly "step up" into a different model of the item.  When you return the item, you get a full credit - including the sales tax.  Why? Because they ring it up as a returned item and a "no sale." You then pay the full tax on the upgraded item.  And what happens when that item you returned is then sold again?  Best Buy collects the taxes on that purchase and everything is as it needs to be.
post edited by mdhaus - 2022/04/17 22:18:53
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Re: EVGA Step up Taxes 2022/04/18 12:25:28 (permalink)
mdhaus
As someone who understands tax law, this is what I'll say: EVGA does NOT need to be collecting full tax on the first sale, then an additional full tax on the Step-Up once the card is sent back in.  When they credit back the amount you paid for the first card, they are essentially allowing a "return" on the product....no different than what happens at any other store. And when that happens, it triggers a sales tax refund back to the customer.  There is absolutely nothing legally preventing EVGA from either refunding the tax paid (if you bought the card from them and they were the collector) and then charging the full amount on the Step-Up purchase...or holding on to the first payment and simply charging the difference needed to meet the tax requirement.  They are NOT dodging taxes by doing this, as when your "old" card later gets sold again, they will indeed be charging taxes on that transaction.
 
This is what other stores do all of the time.  At Best Buy, for example, they have a similar way for people to return items (such as hardware) and use the credit to similarly "step up" into a different model of the item.  When you return the item, you get a full credit - including the sales tax.  Why? Because they ring it up as a returned item and a "no sale." You then pay the full tax on the upgraded item.  And what happens when that item you returned is then sold again?  Best Buy collects the taxes on that purchase and everything is as it needs to be.


Sounds too logical! Haha

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Re: EVGA Step up Taxes 2022/04/20 07:37:17 (permalink)
Just got the step up notification and EVGA doesn't recognize the price I paid at Newegg for the 3090FTW3 ultra which was $1999 and only uses their own MSRP of $1919 in their calculations. Stinks again. Another $80. That brings the upgrade to almost $600 including shipping and insurance and the bogus TAX charge. It is better selling the card and to wait until I am up for a new one.
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Re: EVGA Step up Taxes 2022/04/20 07:54:03 (permalink)
Emparus
Just got the step up notification and EVGA doesn't recognize the price I paid at Newegg for the 3090FTW3 ultra which was $1999 and only uses their own MSRP of $1919 in their calculations. Stinks again. Another $80. That brings the upgrade to almost $600 including shipping and insurance and the bogus TAX charge. It is better selling the card and to wait until I am up for a new one.


EVGA isn’t in the business of losing money because of other parties taking advantage. MSRP has always been the rule, and while it hurts, if EVGA is giving credit because Newegg decided to charge an extra premium, then all they would do is lose money on the sale.
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Emparus
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Re: EVGA Step up Taxes 2022/04/20 09:01:17 (permalink)
They could just say use MSRP for the old card to calculate instead of all this.
 
CALCULATING STEP-UP COSTS
Simply put, the cost of EVGA Step-Up is the difference between what you paid for your original product and the new product listed at the EVGA Store. To calculate what you paid, follow these simple steps:
  • Add line-item price
    • If you purchase a product as part of a Bundle or DIY from EVGA.com, you must subtract the discount applied to all items. See the above FAQ or example below for an explanation on how to determine the correct cost for a Bundle or DIY item.
  • Do not include taxes.
  • Do not include shipping.
  • Subtract rebates from the line item-price.
  • Subtract from MSRP as listed on EVGA.
post edited by Emparus - 2022/04/20 10:06:35
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Re: EVGA Step up Taxes 2022/04/20 09:45:16 (permalink)
Emparus
They could just say use MSRP for the old card to calculate instead of all this.CALCULATING STEP-UP COSTSThey could say use MSRP for the old card to calculate instead of all this.
 
Simply put, the cost of EVGA Step-Up is the difference between what you paid for your original product and the new product listed at the EVGA Store. To calculate what you paid, follow these simple steps:
  • Add line-item price
    • If you purchase a product as part of a Bundle or DIY from EVGA.com, you must subtract the discount applied to all items. See the above FAQ or example below for an explanation on how to determine the correct cost for a Bundle or DIY item.
  • Do not include taxes.
  • Do not include shipping.
  • Subtract rebates from the line item-price.
  • Subtract from MSRP as listed on EVGA.




It tells you to subtract MSRP right in the part you posted.

Further:


Why did my price paid get changed during the approval process?
-
One of four reasons:

After reviewing the price paid on your invoice, the Step-Up department will adjust pricing based on your invoice.
If there was a rebate for your product, the Step-Up department will adjust pricing to reflect rebates.
*If the purchase price paid on your invoice (less any discounts) exceeds the MSRP of your product when you submit for a Step-Up, then the Price Paid for Product will be adjusted to match the product’s current MSRP.*
*Step-Up eligible products purchased through a Bundle or DIY are discounted based on the percentage off the MSRP to the Bundle or DIY price. Each item within the Bundle or DIY must be calculated using the same fixed percentage off the MSRP for every item.*
#49
daisie345
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Re: EVGA Step up Taxes 2023/02/06 00:49:00 (permalink)
It's possible that EVGA is collecting sales tax on funds they are not receiving, and this might not be in line with some states’ sales tax regulations. It's important to keep in mind that sales tax laws can be complex and can vary from state to state. If you are concerned about the sales tax calculation, it might be a good idea to reach out to EVGA customer support for clarification or to seek guidance from a tax professional you can check out . They may be able to provide you with more information and help you understand the sales tax calculation.
#50
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Re: EVGA Step up Taxes 2023/02/06 07:42:16 (permalink)
daisie345
It's possible that EVGA is collecting sales tax on funds they are not receiving, and this might not be in line with some states’ sales tax regulations. It's important to keep in mind that sales tax laws can be complex and can vary from state to state. If you are concerned about the sales tax calculation, it might be a good idea to reach out to EVGA customer support for clarification or to seek guidance from a tax professional you can check out . They may be able to provide you with more information and help you understand the sales tax calculation.


EVGA applies the correct sales tax based on your location and the laws of your state. If you have questions concerning this please contact EVGA. 

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Re: EVGA Step up Taxes 2023/02/06 11:26:15 (permalink)
Is simple is not EVGA wanting this Taxes is IRS telling them is what EVGA has to charge by force to costumer is no brainer. Simple IRS regardless of feeling from anyone.

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Re: EVGA Step up Taxes 2023/02/06 11:42:50 (permalink)
lastsamurairick
Is simple is not EVGA wanting this Taxes is IRS telling them is what EVGA has to charge by force to costumer is no brainer. Simple IRS regardless of feeling from anyone.


Sales Tax  .... All of the 50 states have their own laws about sales tax ... there is no Federal Sales tax

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Re: EVGA Step up Taxes 2023/02/07 01:08:14 (permalink)
 
Step up program no longer exists, so this is kind of moot now.
 
Lock thread imho.
 
 


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Re: EVGA Step up Taxes 2023/02/07 03:38:03 (permalink)
Nereus
 
Step up program no longer exists, so this is kind of moot now.
 
Lock thread imho.
 
 


I just enjoy that some random person created an account to post about a dead subject, then vanished and others feel the need to chime in and correct the ghost.
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