Quote Originally Posted by JacobsLive View Post
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.