Phone call Tax and Fees of $36 dollars

[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.

[JacobsLive]

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]

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]

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.

[wingsohot]

I believe if you were already taxed by voipo, then you were taxed for your rate in Ohio, which means you already paid the tax for that out of state purchase. You can't be taxed again for the same purchase. The only purchase that can be taxed many times is a vehicle purchase as it changes ownership over its lifetime.

[Keith_EE]

Thanks for the replies. Well in my first post all I wanted to know was if state tax was being collected for my state. I also called voipo support and they could not tell me. They could not give me a break down of the amounts of where the $36 goes.

But anyway when I called my state tax department, they checked their vendor database and voipo is not listed, assuming that is the registration name. They also checked by the California address and the telephone number. If an out-of-state company collects sales tax for Ohioan purchase, the company has to have an Ohio vendor license.

So this leads me to the next part. If state sales tax is part of the $36, I have no idea where it is going. But it's not going to my state. That is why I have to pay "use tax" equal to the amount as if it was sales tax, to my state.

http://tax.ohio.gov

Reporting the tax for out-of-state purchases while living in Ohio is done on an honor system anyway. I think most people, when they buy things that are out-of-state, don't even bother to report it. But I'm being a nice guy and reporting it. Karma too, I guess.

[JacobsLive]

Thanks for the replies.

Reporting the tax for out-of-state purchases while living in Ohio is done on an honor system anyway. I think most people, when they buy things that are out-of-state, don't even bother to report it. But I'm being a nice guy and reporting it. Karma too, I guess.

You are welcome!

I make a lot of online purchases (mostly amazon, that now amazon charge ST for CA). All my prior purchases are reported to IRS while making tax return being an honest citizen as you do. Thats the reason I said while making the tax return make 5.5% which is equal to Ohio ST for VoIP services. There are few stats make it complicated and Ohio is one of them when comes to VoIP services.

[christcorp]

God, I am so happy I live in a state that doesn't have ANY of these problems. No internet sale's tax. No state Income tax. Little or no corporate tax. In-State sale's tax is only 4-6% depending on which county you live in. Property tax on a 3000 sq/ft house is LESS than $1000 per year. Gasoline is under $3 a gallon. We have just about no crime. We ALL have guns and are allowed to carry them (Without a permit); hence the reason for no crime. Hey, if any of you want to move out to Big Beautiful Wonderful Wyoming, you're welcome.

[Keith_EE]

Hello my good fellow voip users.

You are welcome!

I make a lot of online purchases (mostly amazon, that now amazon charge ST for CA). All my prior purchases are reported to IRS while making tax return being an honest citizen as you do. Thats the reason I said while making the tax return make 5.5% which is equal to Ohio ST for VoIP services. There are few stats make it complicated and Ohio is one of them when comes to VoIP services.

Thanks again. Yes on the 5.5% and I sure wish politicians and lawmakers would yield some form of value for the money they take for their shakedowns. But I stop there; I wouldn't want to get too sidetracked. hah

I looked around in the forums here but I can't find anyone that uses an internet phone in their home. I saw the Cisco SPA303, three lines, over at newegg. Also some at the Snom web site--all new territory for me. I'm curious to see how much better sound quality would be after eliminating the analog phone.

God, I am so happy I live in a state that doesn't have ANY of these problems. No internet sale's tax. No state Income tax. Little or no corporate tax. In-State sale's tax is only 4-6% depending on which county you live in. Property tax on a 3000 sq/ft house is LESS than $1000 per year. Gasoline is under $3 a gallon. We have just about no crime. We ALL have guns and are allowed to carry them (Without a permit); hence the reason for no crime. Hey, if any of you want to move out to Big Beautiful Wonderful Wyoming, you're welcome.

Thanks for the info. Wow, Wyoming sounds more of a paradise. Actually I am unemployed and job hunting. The way the economy is, I won't rule out any area. Although I am first looking at warmer climates. It's tough to find any place that has some fairly decent jobs to live above minimum wage.

Here in Ohio for a CCW permit, we have to take a class. I think it is 10 or 12 hours. Then you take the certificate to the Sheriff's office for the background check and permit. I've been mulling over taking this class or not. They post no weapons signs on just about every business door, so the only place to legally carry is while driving.

Anyway thanks again for the replies.

[JacobsLive]

Hello my good fellow voip users.

I looked around in the forums here but I can't find anyone that uses an internet phone in their home. I saw the Cisco SPA303, three lines, over at newegg. Also some at the Snom web site--all new territory for me. I'm curious to see how much better sound quality would be after eliminating the analog phone.

You will not see any difference in voice quality between a sip phone and analog phone with sip adapter.