This one has me a little perplexed on this one Druff.. Reason is because its not a typical gift card with a fixed value like a regular $25 gift card and such.. This is one tied to a fixed value product/service in this case a 12m XBox Live membership which if you purchased online without the card would be taxed online irregardless. I know because when I renew my PS+ every year its taxable and if I buy the card for the membership it is indeed taxable.. NOW.. If I buy just a fixed value card for Playstation Network such as $25-$50 or whatever it is NOT taxable because it is indeed a stored value card like a regular giftcard and should I use it to buy loot crates or whatever the hell Im buying like addons for an EA sports game or what not then yes PS charges taxes on the purchase and the WHOLE thing comes off the stored gift card balance.. A Membership card for something that has a finite fixed value of something specific (such as a 3 month-12month online membership) isnt the same thing. Your basically buying the membership same as you would with a credit/debit card but avoiding your card being put into Microsoft or Sonys network to potentially be used to buy stuff online you didnt authorize.. I know fair number of adults who have kids who work it that way.. The membership card is purchased either at a store or what not to keep the monetary info away from the direct store front of the gaming companies and also allow the kid(s) to buy gift cards to put online for purchases to avoid any unexpected charges to accounts.. Normally I see your point in this case Druff I dont think youve got a case man..