Phone call Tax and Fees of $36 dollars

**vk60546** · 12-28-2011 03:37 PM

Originally Posted by markbet

Thank you for setting me straight.

I have decided to dump Magic Jack for Voipo. I just hope it is a MUCH better experience than the disaster I had with MJ. That was the most horrible scam I have ever fallen for.

Btw, I dumped Magic Jack also after I read that they are very restrictive on the number of calls you can place.

Check this out.

http://magic-jack.pissedconsumer.com...012202291.html

**markbet** · 12-29-2011 05:11 PM

Yes, I can relate with all the horrible stories about Magic Jack. I am in the process of trying to get some of my money back they stole. I filed a complaint with the BBB, which was a waste of time, then I filed another complaint with our state attorney generals office, and getting ready to file papers in small claims court. As soon as I get this mess straightened out, I will try Voipo. I am sick and tired of paying money to a company, and getting screwed.

**markbet** · 01-11-2012 05:12 PM

As an update, I took Magic Jack head on, and won. I have now proceeded with my plan to subscribe with Voipo and ordered their service. I look forward to doing business with a company that seems to stand behind, not only there product and service, but more importantly, the customer.

**Keith_EE** · 02-04-2013 06:44 PM

Hello, I want to make sure I understand this so I know how to handle my state tax return.

I bought residential service. I live in Ohio and I understand since voipo is in Texas, this is an out of state purchase.

How much of the $36 is sent to Ohio? Because when I file my Ohio tax return, I have to pay sales tax on out of state purchases. So I need to know what voipo sends to Ohio.

Thanks.

**JacobsLive** · 02-05-2013 02:27 AM

Originally Posted by Keith_EE

Hello, I want to make sure I understand this so I know how to handle my state tax return.

I bought residential service. I live in Ohio and I understand since voipo is in Texas, this is an out of state purchase.

How much of the $36 is sent to Ohio? Because when I file my Ohio tax return, I have to pay sales tax on out of state purchases. So I need to know what voipo sends to Ohio.

Thanks.

I am not a tax expert. But as far as I understand this is not an "internet purchase" that you have to report to IRS. The service fee that being charged is not just sales tax, it also includes E911 fee, Federal user fee etc. State sale tax if paid would go to the place where the service is generated that is in Texas or California (I believe it is CA not TX).

As I said this is not a "product" but a service, that is being full filled from elsewhere. Some one correct me if I am wrong, thanks.

**Keith_EE** · 02-06-2013 05:56 PM

Originally Posted by JacobsLive

I am not a tax expert. But as far as I understand this is not an "internet purchase" that you have to report to IRS. The service fee that being charged is not just sales tax, it also includes E911 fee, Federal user fee etc. State sale tax if paid would go to the place where the service is generated that is in Texas or California (I believe it is CA not TX).

As I said this is not a "product" but a service, that is being full filled from elsewhere. Some one correct me if I am wrong, thanks.

Thanks for the reply. I called my state department of taxation. Voice over internet is taxable here in Ohio. Ohio has what is called a "use tax". It was enacted in 1936 as a companion to the Ohio sales tax.

I don't know what state you live in, but here in Ohio, just because I buy something over the internet does not mean it is tax free. There is no difference if I buy a product or certain services from a web page or a hard copy mail order catalog. If the companies are not in Ohio then both are out-of-state purchases. And voice over internet happens to be one of the services that is taxable here in Ohio. Cell phone service is taxable here. Even labor on car repairs, for example, is taxable here in Ohio.

If anyone has any doubts the best thing to do is go to your states tax web page and look there. Or just call and ask them. I think this is still fairly new but I would guess that most states have or will work in voice over internet as a taxable service.

Thanks again for replying.

**JacobsLive** · 02-07-2013 01:38 AM

Originally Posted by Keith_EE

Thanks for the reply. I called my state department of taxation. Voice over internet is taxable here in Ohio. Ohio has what is called a "use tax". It was enacted in 1936 as a companion to the Ohio sales tax.

Ohio has "Sales Tax" @5.5% on VoIP service, noy "use tax". Use tax is imposed on something that you bought from internet or otherwise from out of state. Hope your state does not tax you for browsing internet or visiting google.com lol

Taxing VoIP is a complicated and tricky thing. It is better you pay 5.5% tax along with your tax return. I do not think any VoIP provider will collect and deposit tax state wise. As far as they collect and deposit tax to the state they are doing business, their part is done. (Just my opinion) You better consult with an Ohio Tax expert.

I don't know what state you live in, but here in Ohio, just because I buy something over the internet does not mean it is tax free. There is no difference if I buy a product or certain services from a web page or a hard copy mail order catalog. If the companies are not in Ohio then both are out-of-state purchases. And voice over internet happens to be one of the services that is taxable here in Ohio. Cell phone service is taxable here. Even labor on car repairs, for example, is taxable here in Ohio.

I live in California and here there is not State Sales Tax on VoIP service. Rest everything is taxed at a higher rate than any other state.

If anyone has any doubts the best thing to do is go to your states tax web page and look there. Or just call and ask them. I think this is still fairly new but I would guess that most states have or will work in voice over internet as a taxable service.

Thanks again for replying.

Thanks for sharing though.