It’s totally illegal to avoid PlayStation Network sales tax which has rolled out across many States in the U.S., with more regions now being included as from April 2017, but some unscrupulous players have found a way around it, thus reducing the amount they have to pay for the games they download on the PlayStation Network.
The sales tax applies to anything you buy from the PlayStation Store, so any item purchased from PlayStation Vue, PlayStation Now, PlayStation Music and PlayStation Plus either is right now, or will be affected by the US tax in certain States. You’ll see the additional tax price underneath the price of the game when you check out at the Store.
Apparently, players are taking the following steps to avoid PlayStation Network sales tax.
1. Setting up a billing address on their PSN account that is in a State or Country which doesn’t require you to pay PlayStation Network tax, such as the UK.
2. Instead of using a credit card or debit card (which may have to show the same address as the billing address), they’re paying for their digital goods on the PlayStation Store via Paypal or using PSN top-up cards.
Note: This PSN tax avoidance method is illegal and certainly not recommended.