Netflix Price Increase

[VictoriaFTA]

Do you pay taxes on cable and phone service? Both are "digital goods"

Those services need your physical address. Netflix does not. Use your head. If nothing has to be shipped to you, why would you use a billing address that's not in Alaska, Delaware, Montana, Oregon, or New Hampshire?

 

[Juan]

Those services need your physical address. Netflix does not. Use your head. If nothing has to be shipped to you, why would you use a billing address that's not in Alaska, Delaware, Montana, Oregon, or New Hampshire?

There are less than 5 states that charge tax on digital services

 

[VictoriaFTA]

There are less than 5 states that charge tax on digital services

False.

State-by-state guide to the taxability of digital products and digital goods

How are digital products taxed in your state? Some states tax digital games and some don’t. Other states exempt digital goods and services. Learn about your state.

www.avalara.com

US digital services sales tax

Approximately 30 US states levy their sales taxes on digital, or electronic services, the definition and taxability of digital services in the United States varies by state. And as in other countries, U.S. sales tax laws are subject to change...

www.avalara.com

Best to just have your digital avatar live in one of the five completely sales tax free states when buying anything that doesn't have to be shipped to your physical location.

 

[Bruce]

False.

State-by-state guide to the taxability of digital products and digital goods

How are digital products taxed in your state? Some states tax digital games and some don’t. Other states exempt digital goods and services. Learn about your state.

www.avalara.com

US digital services sales tax

Approximately 30 US states levy their sales taxes on digital, or electronic services, the definition and taxability of digital services in the United States varies by state. And as in other countries, U.S. sales tax laws are subject to change...

www.avalara.com

Best to just have your digital avatar live in one of the five completely sales tax free states when buying anything that doesn't have to be shipped to your physical location.

Your links are incorrect, for example-

Below is a list of U.S. states that generally exempt digital goods:

• Alaska
• California
• Delaware
• Florida

That is where I live, here is the correct information-

Mobile communications and video services are taxed at the total Florida rate of 7.44% plus the applicable local tax rate. There is no residential exemption.

What is Taxable?

Communications services include telecommunications, video, direct-to-home satellite, and related services.

This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium.

Examples of services subject to the tax include, but are not limited to:

Video services (for example, television programming), whether provided by a cable, telephone, or other communications services provider

Video streaming

Direct-to-home satellite

https://floridarevenue.com/Forms_library/current/gt800011.pdf

 

[Juan]

Your links are incorrect, for example-

Below is a list of U.S. states that generally exempt digital goods:

• Alaska
• California
• Delaware
• Florida

That is where I live, here is the correct information-

Mobile communications and video services are taxed at the total Florida rate of 7.44% plus the applicable local tax rate. There is no residential exemption.

What is Taxable?

Communications services include telecommunications, video, direct-to-home satellite, and related services.

This definition includes voice, data, audio, video, or any other information or signals transmitted by any medium.

Examples of services subject to the tax include, but are not limited to:

Video services (for example, television programming), whether provided by a cable, telephone, or other communications services provider

Video streaming

Direct-to-home satellite

https://floridarevenue.com/Forms_library/current/gt800011.pdf

My understanding is that she was talking about taxing Netflix

 

[Bruce]

My understanding is that she was talking about taxing Netflix

And that is what I posted, what do you believe Video Streaming is, I even put it in bold.

 

[savarese04]

Those services need your physical address. Netflix does not. Use your head. If nothing has to be shipped to you, why would you use a billing address that's not in Alaska, Delaware, Montana, Oregon, or New Hampshire?

Does Netflix not validate the billing zip code on the credit card you set up for payments? I believe most online payment mechanisms do this as a way to combat fraud.

 

[Mr Tony]

Does Netflix not validate the billing zip code on the credit card you set up for payments? I believe most online payment mechanisms do this as a way to combat fraud.

You can also use PayPal to pay monthly. Then they (Netflix) dont have your credit card info

 

[Bruce]

You can also use PayPal to pay monthly. Then they (Netflix) dont have your credit card info

I pay by Gift Cards that I purchase with my Credit Card points, but they know where I am.

When I activated my Apple TV, had a email from them, that said-new device authorization in Kissimmee, Florida.

 

[comfortably_numb]

When I activated my Apple TV, had a email from them, that said-new device authorization in Kissimmee, Florida.

They track that location by your IP address and you receive that notification any time you activate from a different location. Has nothing to do with payment or determination of taxes.

 

[savarese04]

You can also use PayPal to pay monthly. Then they (Netflix) dont have your credit card info

Paypal records your billing info and charges tax in appropriate regions; that's part of the service they are required to perform as a payment processor

I pay by Gift Cards that I purchase with my Credit Card points, but they know where I am.

now, this is a stumper! i guess this is the foolproof way to hide your billing location!

 

[meStevo]

I don't think many services really care and those that do (YTTV has had me verify my location using my phone, iirc) offer services sensitive to your location. Probably related to sports and local channel availability, or in response to accessing services from multiple locations and efforts to reduce account sharing.