Quote Originally Posted by Keith_EE View Post
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.