Adobe digital subscription + "VAT tax" + tax rate coincidence?

Drez

Hi, so this is relatively unimportant since the magnitude is so low, but I've been reviewing all my monthly subscriptions so I can clean up my budget.

I used to live in NY which has a 8.875% sales tax rate. I now live in NJ which currently has a sales tax rate of 6.875%. I noticed that a majority of my subscriptions follow the NJ tax rate, but my subscription to Adobe Photoshop appears to follow the NY tax rate. I made my account many years ago, while I was still living in NY. My address was updated to NJ at some point, but I am paying $10.88 rather than the expected $10.68.

I contacted Adobe and explained my question. Bottom line: I am told that the tax being charged in this case is a VAT tax and that it is just a coincidence that the rate is equal to the NY tax rate.

Does that make sense? I don't really know much about VAT.

Again, I know this is inconsequential. It's more of a numbers puzzle for me.

Wassermelone

I would bet you it's just shitty Adobe customer service and you are still being charged NY tax rates. They will tell you anything and being charged VAT in the US makes no sense.

Adobe customer service has straight lied to me before about billing stuff.

NightDragon

Yeah something there seems very wrong. You shouldn't be charged VAT in the US.

I have one sub from them, I'm in MA, and I'm not charged VAT. Something is clearly messed up on their end.

Taerak

Cancel the account subscription and resubscribe if next month if necessary? Would bet the extra charges would not show up then.

spool32

afaik there is no VAT anywhere in the USA.

bowen

Probably just someone overseas that is familiar with VAT and doesn't know that we get charged sales tax instead. Different but the same.

"I'm being charged sales tax/VAT for the wrong region and it needs to be corrected" is how you respond to that when you go to support and they don't know what sales tax is.