CITY TAX WHERE THERE SHOULD BE NO TAX

Question

Zoom is charging city tax as well as federal tax. In Federal Way, WA, we do not get charged sales tax. The latest invoice from Zoom snuck in city tax. There is no business tax in Federal Way. In fact, I have to pay city tax to Tacoma since I have customers in that region. I ALREADY pay city taxes. So, in trying to get a refund for my invoice that included city tax, Zoom is not helpful.

Anyone else frustrating and concerned about all of the city tax being collected where Zoom has nowhere to pay the cities?

Cass

S_K · Accepted Answer

Hi @CAT3

Thank you for reaching out to Zoom Community! I understand you're concerned about the city and state sales tax charged on your invoice. The following Zoom Support articles might give you a better understanding of where and why taxes are charged.

If you still have questions or concerns, it's best to submit a request to Zoom Billing in case they need to access your account.

Cheers!

~S

CAT3 · Answer

I think I understand now.  It is interesting that you are passing through tax and the city and the state taxes are doubling up for small business.  What Zoom does is pass through all tax obligations and imposes on the customer-base.  I pay B&O Use tax to Washington State on gross revenues, see link.  If I provide my consulting services in person, I would bypass any telecom remote web services.  Using Zoom is artificially putting your customer-base in a reseller position.  I am NOT reselling Zoom services so that my clients can use the Zoom platform I provide.  I am the host and will always continue to be the host.  The taxation seems quite burdensome and is yet another way to reduce profits for small business.  Whether this is state or Zoom imposed is my bigger-picture question.  Thanks for your ongoing help.

CITY TAX WHERE THERE SHOULD BE NO TAX

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