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Vonage AFAIK, they are supposed to charge sales taxes (I'm in NJ) on 'service and equipment'. After



AFAIK, they are supposed to charge sales taxes (I'm in NJ) on 'service and equipment'.

After realizing that the Int'l rates are now lower than the old calling cards I used to use, specially when those bastards started to charge access and service fees, I decided to check what I'm 'really paying'.

Looking at my bill, I find that they are charging $1.89 in sales tax. The service plan is $24.99 and at a tax rate of 7%, it should be $1.75. Making some numbers, I notice that they charge tax on the Regulatory Recovery Fee ($0.99) and Emergency 911 Cost Recovery ($0.99).

Bottom line, are they 'eating' this $0.14 cent charge on every customer in NJ ? How can they charge taxes on fees ?

I sent a letter but I know what their answer would be...

TIA



Read The Full Thread:

State taxes on fees ???


They also charged me sales tax on shipping. I don't think shippining is taxable
move to Canada we tax you on everything.
Been there, done that... But yeah, 15%+ between GST and PST... But at least
Or you could move to the UK, get ripped off more and pay 17.5% VAT on most things.
Note that the two items in the first post aren't taxes (although they may appear
Yes, those are 'fees' and not taxes. But the thing is that AFAIK, you can only charge
State taxes aren't the only thing. I've seen a few posts here over the past few months

su_A_ve posted "AFAIK, they are supposed to charge sales taxes (I'm in NJ) on 'service and equipment'. After" on 04/08/2007

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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

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