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Washington: US District Court Holds Sales of Gift Cards for Video Game Digital Currency are Not Exempt

In a class action lawsuit alleging a breach of contract and violations of Massachusetts, New York, and Washington consumer protection laws by an online marketplace for improperly charging and collecting state-based sales tax on the plaintiffs’ purchases of gift cards for digital currency used in a video game, a US District Court held that such items were not exempt from taxation under the states’ respective laws.

Source Deloitte

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