said by Tsume :

2008-09-12 04:07 AM Regulatory Recovery Fee $3.45 ----

That's what I've been charged every month since I've had VT. Only one line item. Is this the old, old system?

I just did the "extend my contract and get 6mo free" thing. Does that count as a renewal? Will I get charged the same fee or the new (looks like higher) fees?

said by piggygirl :

In the transaction log the E911 Cost Recovery Fee is reduced from $1.48 to $0.48, but it wasn't reduced from the credit card.

said by VTBrendan :

Hi,

I'll look into that and see if I can figure out exactly what it is for your reference. If you can PM me your VT number, that'd help out as well. Thanks!

-Brendan

said by jay_rm :

I used to get one invoice for ~$3.50 each month. Starting this month, I got multiple invoices, one for each tax line item.

Is this the 'new' or 'old' system ???

said by gk :

> Good post, but the excise tax is for
> the state, not federal. What the states
> want and the feds want can be too different things.

ptrowski, "state excise tax" applies to tobacco, alcohol, motor fuels, and sometime real estate, but NOT telecommunications.

so unless VT is providing us with a shot of Black Label Johnny Walker with every monthly bill, I'm not sure where this "excise tax" is coming from, as it's certainly not the state. Excise tax on telecommunications was traditionally from the Feds, not the state governments.

said by Russell_ :

I believe you're still on the "old" system. Whereas, piggygirl is on the new one. When piggygirl was on the old system she would be paying exactly what you show.

said by jay_rm :

As a point of comparison, here in my part of Illinois, the total tax was:

Package Name: Regulatory Recovery Fee
Billing Cycle: 1 month(s)
Price: $1.97

Package Name: E911 Cost Recovery Fee
Billing Cycle: 1 month(s)
Price: $1.48

..for a total of $3.45. If you think your taxes are too high, there's probably a better place to complain then in a VT VoIP forum...

said by gk :

I am by no means a total tax expert, I am however literate and quite capable of reading gov't docs on where VoIP should be taxed.

Based on my own reading of gov't docs, here's what I think about the fees Viatalk is now charging.

> Regulatory recovery fee 1.97

this is not a gov't tax, but simply money straight into Viatalk's pocket.

> E911 cost recovery fee 1.48

VoIP providers are required to provide E911 service, which costs money, so this may very well be a valid fee, although it's a little on the high side if you ask me. It really shouldn't be any more than $1.00, particularly given how big Viatalk is and the discounts they should avail of given their large customer base.

> NY MCTD 186c 0.28

I cannot comment on this fee, as I am not a resident of NY.

> Excise tax 1.20

As far as I'm concerned this "tax" is total BS.

The IRS issued Notice 2006-50, 2006 I.R.B. 25, which if I read correctly, dismisses VoIP from paying into the Federal excise tax.

> Transit tax 0.18

unable to comment on this tax, as I am not a resident of NY.

> Sales tax 3.86

I don't know whether this is legit, but I've never heard of sales tax on services.

> FUSF (VOIP) 3.21

This tax is legit.

> FCC Regulatory Fee (Voip) 0.13

This tax is legit.

> E911 tax 0.30

OK, so first there is an E911 cost recovery fee and then there is also an E911 tax? Seems fishy, not sure where this is coming from and I believe this is BS.

said by gk :

> Sales tax 3.86

I don't know whether this is legit, but I've never heard of sales tax on services.

said by nycityny :

Yes, I am aware of that and thus was expecting high charges in New York State. The thing is, ViaTalk is charging the comparable fees to customers in all states.

said by dmolavi :

VT is a NY based company, so they may have to charge it, while others that are not based in that state may not have to.

said by nycityny :

Thanks for posting. I suspected that New York City would have high taxes but I did not think it would be that high. I will definitely leave ViaTalk after my free year is up as those fees make them non-competitive.

And I know folks are going to write that ViaTalk has no choice and that I have no choice. But I do. Many other VOIP providers do not charge those fees and taxes. If others interpret the rules to be that they are not required to collect and remit then I am happy with that interpretation.

And for me ViaTalk is back-up for my VoicePulse line. If I'm going to pay all those taxes/fees I might as well pay them to Verizon and get a basic no-frills POTS line as a back-up with 99% reliability.

said by piggygirl :

My 3mos renewal was posted today for the normal $41.85