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Is Virtual Office Space taxable?
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first...@gmail.com
Feb 7, 2015, 4:55:03 PM2/7/15
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Hello all, I have a space with Regus and before that with Office Suites Plus (OSP). It includes phone services, mailbox services and 16 hours a month of virtual office space. For the most part, I don't use the office space, but every once in a while I use it. Anyway, they invoice me every month and they don't charge sales tax. It's just the monthly fee plus the cost of the postage to send me anything. It's a yearly contract that I've been renewing since 2009.
How I'm being audited by the State of Florida from 2011 to 2013 they are saying that I should have been charged taxes on the rent of my office. I sent them copies of all of Regus' and OSP invoices which do not include taxes. The state says I now have to pay them sales tax for the 3 years worth of taxes which I was not charged by Regus and OSP. I called Regus and OSP and they both say they don't charge any customer, worldwide, of which there are thousands, taxes on any of their virtual office packages. They only charge tax if you have a permanent office space there. But they consider their virtual office packages to be a service. Most customers never even use the 16 hours of space they are entitled to and if they do, they are given any space Regus or OSP have available. If they have no space available on the day you want, then you don't get office space.
Thoughts on this?? How do I get out of paying this tax?? My accountant is also quite confused and is researching as well!
Thanks!!
--
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How I'm being audited by the State of Florida from 2011 to 2013 they are saying that I should have been charged taxes on the rent of my office. I sent them copies of all of Regus' and OSP invoices which do not include taxes. The state says I now have to pay them sales tax for the 3 years worth of taxes which I was not charged by Regus and OSP. I called Regus and OSP and they both say they don't charge any customer, worldwide, of which there are thousands, taxes on any of their virtual office packages. They only charge tax if you have a permanent office space there. But they consider their virtual office packages to be a service. Most customers never even use the 16 hours of space they are entitled to and if they do, they are given any space Regus or OSP have available. If they have no space available on the day you want, then you don't get office space.
Thoughts on this?? How do I get out of paying this tax?? My accountant is also quite confused and is researching as well!
Thanks!!
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Pico Rico
Feb 7, 2015, 6:30:03 PM2/7/15
to
<first...@gmail.com> wrote in message
news:6ad491c4-b713-4277...@googlegroups.com...
> Hello all, I have a space with Regus and before that with Office Suites
> Plus (OSP). It includes phone services, mailbox services and 16 hours a
> month of virtual office space. For the most part, I don't use the office
> space, but every once in a while I use it. Anyway, they invoice me every
> month and they don't charge sales tax. It's just the monthly fee plus the
> cost of the postage to send me anything. It's a yearly contract that I've
> been renewing since 2009.
>
> How I'm being audited by the State of Florida from 2011 to 2013 they are
> saying that I should have been charged taxes on the rent of my office. I
> sent them copies of all of Regus' and OSP invoices which do not include
> taxes. The state says I now have to pay them sales tax for the 3 years
> worth of taxes which I was not charged by Regus and OSP. I called Regus
> and OSP and they both say they don't charge any customer, worldwide, of
> which there are thousands, taxes on any of their virtual office packages.
> They only charge tax if you have a permanent office space there. But they
> consider their virtual office packages to be a service. Most customers
> never even use the 16 hours of space they are entitled to and if they do,
> they are given any space Regus or OSP have available. If they have no
> space available on the day you want, then you don't get office space.
-------
> Plus (OSP). It includes phone services, mailbox services and 16 hours a
> month of virtual office space. For the most part, I don't use the office
> space, but every once in a while I use it. Anyway, they invoice me every
> month and they don't charge sales tax. It's just the monthly fee plus the
> cost of the postage to send me anything. It's a yearly contract that I've
> been renewing since 2009.
>
> How I'm being audited by the State of Florida from 2011 to 2013 they are
> saying that I should have been charged taxes on the rent of my office. I
> sent them copies of all of Regus' and OSP invoices which do not include
> taxes. The state says I now have to pay them sales tax for the 3 years
> worth of taxes which I was not charged by Regus and OSP. I called Regus
> and OSP and they both say they don't charge any customer, worldwide, of
> which there are thousands, taxes on any of their virtual office packages.
> They only charge tax if you have a permanent office space there. But they
> consider their virtual office packages to be a service. Most customers
> never even use the 16 hours of space they are entitled to and if they do,
> they are given any space Regus or OSP have available. If they have no
> space available on the day you want, then you don't get office space.
if you have access to physical office space, why do you think it is
"virtual" space?
perhaps your vendor should allocate your payments between actual services
and physical office space.
Mark Bole
Feb 8, 2015, 11:25:04 PM2/8/15
to
On 2015-02-07 15:29, Pico Rico wrote:
> <first...@gmail.com> wrote in message
> news:6ad491c4-b713-4277...@googlegroups.com...
> <first...@gmail.com> wrote in message
> news:6ad491c4-b713-4277...@googlegroups.com...
. If they have no
>> space available on the day you want, then you don't get office space.
>
> -------
>
> if you have access to physical office space, why do you think it is
> "virtual" space?
>
> perhaps your vendor should allocate your payments between actual services
> and physical office space.
>
Not an expert on FL sales tax on rentals, but it seems at first glance
>> space available on the day you want, then you don't get office space.
>
> -------
>
> if you have access to physical office space, why do you think it is
> "virtual" space?
>
> perhaps your vendor should allocate your payments between actual services
> and physical office space.
>
they have a case. Even included services are taxed. But the fact that
you don't have unrestricted rights to the rental might be a factor in
your favor.
My advice would be, pay or be prepared to appeal it to tax court, if
this is a state-wide fishing expedition by FL. The vendor may or may
not have had a requirement to collect the tax, but that won't help you
either way.
--
Mark Bole, EA
http://markboletax.com
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