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Business

Report: Vonage to start collecting sales taxes in 21 states

On the non-Vonage-affiliated Vonage Forum today, several posters to a thread called New Vonage Logo and Sales Tax Discussion note that Vonage says it may start to collect sales taxes in as many as 21 states as soon as today.In an effort to find out more definitive information, Vonage Forum Member mbkerk went to the contact section of his Vonage dashboard and asked what was up.
Written by Russell Shaw, Contributor
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On the non-Vonage-affiliated Vonage Forum today, several posters to a thread called New Vonage Logo and Sales Tax Discussion note that Vonage says it may start to collect sales taxes in as many as 21 states as soon as today.

In an effort to find out more definitive information, Vonage Forum Member mbkerk went to the contact section of his Vonage dashboard and asked what was up.

He then received an automated response from Vonage that noted

On or about May 1st, Vonage will begin charging taxes to Vonage customers in various states across the US. Vonage will begin with the 21 states listed below (in addition to New Jersey). State and local governments may assess taxes, surcharges and/or fees on use of Vonage service. These charges may be a flat fee or a percentage of Vonage charges and may change from time to time without notice. These
charges are based on the rates applicable to the address provided to us.

Vonage then lists the states where sales taxes may apply:
Arkansas, Colorado, Connecticut, Iowa, Indiana, Kansas, Kentucky, Michigan, Minnesota,North Carolina, North Dakota, Nebraska, Nevada, New Jersey, Ohio, Oklahoma, South Carolina, South Dakkota, Tennessee, Utah and West Virginia.

Responses on this thread ranged from a perception that Vonage is doing this as another source of revenue to resignation that new laws on the state level may, in fact, be compelling Vonage to collect these taxes. 

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