Are digital video games taxable? For instance, I bought a few video games on Steam and a few on GoG. Do I need to submit these purchases when I file taxes this year?

[MaryK4]

For Sales and Use tax, most states still do not tax digital video games (but some do, most notably, Texas).  Which state do you live in?  @xenosophist

[xenosophist]

Thanks for your quick reply, Mary. I live in Virginia currently.

[ErnieS0 · Accepted solution]

Virginia exempts digital sales from sales and use tax, but a taxpayer recently lost a tax appeal because they could not prove the purchase was delivered electronically. Your invoice should show digital delivery.

See: Document 21-19

[xenosophist]

Phew! Thank you. I have kept all my receipts.

[grippos]

Here are a few steps you can take to determine if you need to include your digital video game purchases in your tax filing:

Check Local Regulations: Look up the tax regulations in your country, state, or region to see if digital purchases are subject to any form of taxation. This information should be available on official government websites or through tax authorities.

Review Purchase Receipts: If you have receipts or invoices for your digital game purchases, these might indicate whether any taxes were applied at the time of purchase. Some platforms like Steam or GoG might include tax information on the receipts. I wonder how well this works in online casinos, because until you check https://casinosanalyzer.com/online-casinos/taka-bdt such games for information, it's scary to go there. 

Consult a Tax Professional: If you're uncertain about how to proceed, it's recommended to consult a tax professional who is knowledgeable about your specific jurisdiction's tax laws. They can provide personalized advice based on your situation.

Keep Records: Regardless of whether or not you need to report your digital game purchases, it's a good practice to keep records of your transactions, including purchase receipts and any relevant tax information.