FET?

Posts: 281 · Posted: Mon Dec 13, 2004 4:46 pm Post subject: FET?

Just looked at my Vonage bill. It's great service for a great price.. even with what I'm about to ask about... this is more of a curiousity question.

FET Tax $1.35

Why exactly is Vonage charging a FET Tax? My understanding was they are not regulated as phone companies are. Why the FET Tax?

Posts: 18 · Vonage Forum Associate Joined: Nov 28, 2004 Posts: 18

federal excise tax...
they are currently not regulated like traditional phone companies...
however, no way around this.

Posts: 281 · Posted: Mon Dec 13, 2004 8:05 pm Post subject:

I know they aren't regulated.. so why the FET Tax?

Posts: 18 · Vonage Forum Associate Joined: Nov 28, 2004 Posts: 18

as I understand it...they are not regulated on state level...but are on federal level..and there is a federal communications tax, thus the FET 3%

Posts: 3198 · Posted: Tue Dec 14, 2004 9:13 am Post subject:

I could be totally off, but I don't think this is correct. Packet8 and other services don't charge the FET. some voip's, including Vonage obviously, might but I don't think it's required. Why do they do it? who knows, maybe they want to say hey fcc, look at us, we're on your side.

Posts: 98 · Posted: Tue Dec 14, 2004 3:21 pm Post subject: No real reason

They have no real reason to charge F.E.T., they just do. Voip is as yet not regulated by any agency, Federal or state. (Which also makes me wonder what's with the "Regulatory recovery Fee"?) I do not understand why Vonage charges Federal Excise Tax, which in itself is outdated. That particular tax was designed to help pay off debt from the Spanish-American War. You'd think that would be paid off by now. Confuse

Vonage is a lot less expensive than my old Sprint line. Still, I don't like padding someones wallet with bogus fees.

Posts: 281 · Posted: Tue Dec 14, 2004 3:31 pm Post subject:

Yeah and they are setting a bad precedent.. by saying look we're charging these fees! (what with the whole Voip regulation war going on right now)

Posts: 18 · Vonage Forum Associate Joined: Nov 28, 2004 Posts: 18

Are you sure packet8 doesnt charge fet? its noted on their website...

I think a part of it too, is a wanting to align themselves under federal authority vs state etc....

The way I look at it, is what I will pay Vonage total including the tax, is pretty comparable to what I pay just in taxes and surcharges with the telco...and I also don't look forward to the day when it will be taxed more..cause that day will come eventually.

Posts: 3198 · Posted: Tue Dec 14, 2004 9:00 pm Post subject:

sorry, I was wrong, Packet8 does have FET. I missed it when I looked before.

Posts: 281 · Posted: Wed Dec 15, 2004 7:59 am Post subject:

Oh yes I agree... the rate is great.. even WITH the FET tax!!!