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Vonage Keep in mind that the FCC has kept the state and local tax authorities away for now.



Keep in mind that the FCC has kept the state and local tax authorities away for now. This of course could change!

This means that there are no states I am aware that have a "proven" legal claim to collect taxes from the Voip industry. That is why Vonage has set up a tax reserve that should be in the neighborhood hood of 15 million by now. It was 7.5 million as of 12/31/06 per their end of year financials filed with the SEC since they are a public company.

Vonage claims to be paying 18 jurisdictions the 911 county fee and I have yet to hear back if mine in DuPage or Cook county Illinois are one of the 18 they are paying.

The Federal Universal Service Tax (FUT) goes to the FCC. This rate doubled from its days as FET, which also went to the FCC. Almost like a ransom by the FCC to keep the state and local's away from the telecom tax trough! Soo...WEEEE!!

Vonage is likely using the 6 of the 7 tax line items to pay for their lawyers, but I am waiting for that accounting without holding my breath.

Once the number transfer is done, I am saying gooddbye to Vonage, Sunrocket came on line yesterday and it sounds better than Vonage on todays call. Lets hope Comcast keeps their hands off my voice packets and lets them flow as they are supposed to!!



Read The Full Thread:

No tax?


Viatalk says they don't charge tax on their service. Why does Vonage?
[font=Courier New] [/font] i really dont believe that they dont charge taxes
They don't? Or the tax is inclusive already on the monthly bill? They aren't
I don't see anything on their website about no tax, but what I do see it this: "*All
Ok, well I hopped into their live chat and asked an agent to get the answer myself.
Vonage does charge State and Local taxes on both my accounts with Vonage. 1.


rexki posted "Keep in mind that the FCC has kept the state and local tax authorities away for now." on 04/25/2007

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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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