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I'm comparing the options between buying 1400 points for $19.99 vs 500 points for $7.25. The former is buying a card at a retail store, the latter is buying the points directly from the 360. If buying from the 360 includes tax (or just doesn't charge it, either way), then it's cheaper. Otherwise, the card is cheaper.

Does anyone know which way it goes?

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I'm not going to edit without asking first, but I assume the 1400 above is a typo unless they sell the cards in 1400 point increments in Canada (which is what your profile states). And if you are in Canada, tax questions may have completely different answers and you might need to specify that in your question. I'm guessing most people are assuming U.S. –  Doozer Blake Apr 17 '11 at 3:44
    
There generally isn't much difference between Canadian and US taxes for online purchases. If it's taxed in the US, it'll be taxed here too. And yeah, 1400 and 2800 are the only two options here, aside from odd cases like 800 + 12 months. –  migo Apr 17 '11 at 6:44
    
Interstate commerce is rarely taxed in the US; ergo online purchases are also rarely taxed unless you live in the same state as the seller. There is no national VAT/GST in the US. –  user2640 Apr 17 '11 at 13:03
    
It's the same in Canada. –  migo Apr 17 '11 at 18:34
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2 Answers 2

up vote 1 down vote accepted

The price online does not include tax, however most of the time the price listed on the site is the price you end up paying at the time of checkout. Then they add the taxes.

Found this after my post: http://forums.xbox.com/32258669/PrintPost.aspx

Q: Do I pay taxes when I use my Points to obtain digital goods and services?

A: No. Applicable taxes are paid on the purchase of Points, not on the redemption of the Points for digital goods and services.

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In the United States, tax is added to the price of the points when you buy points directly on your 360 or through xbox.com. 4000 points list for $49.99, and my most recent purchase, in March 2011, was billed for $53.49 (Indiana, where I live, currently has a state tax rate of 7%).

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The same applies if you buy it off xbox.com in your web browser. –  Doozer Blake Apr 17 '11 at 3:31
    
@Blake, good to know: I'll add that to my answer. –  Dave DuPlantis Apr 17 '11 at 3:42
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