Responses (3)

• E

  Eagle328

  Taxes... I have the $100 plan. It came out to $108.75. Sales tax here is 8.75%. Those good old days of no tax on internet purchases are almost over in every State now.

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  15-02-2020 12:27:07

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• M

  Marlin

  If you live in VA, services are not taxable. Ring can't seem to pick a stance on whether they're a cloud service or a security. When I contacted billing support one representative would say they're a could service and another would say they're a security service. [Miscellaneous service enterprises; Monitored and non-monitored alarm systems.](https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/97-417) > Title 23 of the Virginia Administrative Code (VAC) 10-210-230(A) defines "monitored systems" as "burglar, security and fire alarm systems which are furnished, installed and monitored under contract with the person furnishing and installing such systems." This regulation further provides the following: > Charges for **monitored systems** constitute charges for a **service** which is **not subject to the tax**. The person selling/leasing and installing the monitored system is deemed to be the consumer of all property used in providing the service and must pay the tax on such property at the time of purchase. [Cloud-based and hosted phone and other telecommunication services](https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/13-182) > Because no tangible personal property is furnished, the transactions described in the Taxpayer's ruling request are strictly for the provision of professional services. Pursuant to *Va. Code* § 58.1-609.5 1, an exemption from the retail sales and use tax applies to: >Professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made; services rendered by repairmen for which a separate charge is made; and services not involving an exchange of tangible personal property which provide access to or use of the Internet and any other related electronic communication service, including software, data, content and other information services delivered electronically via the Internet. > Accordingly, transactions for the **cloud-based** or **hosted services** are **exempt** from the **retail sales and use tax**. Because **no tangible** personal property is **transferred to customers**, **add-on services and maintenance services** charged by the Taxpayer are also **not subject to the tax**.

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  29-01-2022 12:31:31

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• M

  Marlin

  Look what happened to Peleton when they didn't fix their issue: [Peloton is sued for improperly charging sales tax](https://www.reuters.com/business/peloton-is-sued-improperly-charging-sales-tax-2021-08-13/)

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  29-01-2022 12:36:08

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