Verizon Cost - Understanding Charges

[InfinitiFX35]

So I took a look at my bill and I am confused. The phone was $299.99 w/ $19.80 Taxes/Fees, yet the total due when shipped is $349.79. Am I missing something? The activation fee will show up on my first months bill, so I am left wondering where the additional cost is coming from. Anyone have any thoughts? Thanks.

 

[Baby_Doc]

Call Verizon and they will explain the charges. Could there be additional sales tax on the full $700 value of the phone?

Posted via Android Central App

 

[BlueBlazer60]

Odd $30.00 difference. Only $30.00 Verizon fee that comes to mind is the upgrade fee, but if you are paying a activation fee there should not be an upgrade fee. No idea - call and ask.

 

[Honey_184]

Verizon charges a $30 upgrade fee

 

[InfinitiFX35]

So a rep confirmed the upgrade fee. I am also questioning the customer agreement portion in which an activation fee of $35 is listed. The rep says I should not have to pay this if it is for an existing line. They also said it may be a generic portion of the order confirmation / receipt. I will wait it out to see if it hits my first months bill with the new phone. I am not to worried about it, just curious is all.

 

[carraser891]

I used to work there. The representative is correct.

Posted via the Android Central App

 

[Willn]

When you buy a phone on subsidy discount you have to pay taxes on the full price. They call it an upgrade fee but its really just the remaining taxes owed. When you purchase a phone at full price there is no upgrade or activation fee because you pay the full amount of taxes.

Posted via the Android Central App

 

[goin_nil]

When you buy a phone on subsidy discount you have to pay taxes on the full price. They call it an upgrade fee but its really just the remaining taxes owed. When you purchase a phone at full price there is no upgrade or activation fee because you pay the full amount of taxes.

Posted via the Android Central App

Verizon told me the opposite.

I only pay tax on sale amount $299, not the full amount. And I have to pay an activation fee of $30, no fee for upgrading.

 

[BlueBlazer60]

When you buy a phone on subsidy discount you have to pay taxes on the full price. They call it an upgrade fee but its really just the remaining taxes owed. When you purchase a phone at full price there is no upgrade or activation fee because you pay the full amount of taxes.

Sorry that is an error. On standard two year contract upgrades it is a flat $30; on the EDGE program since you are purchasing a full price phone the entire sales tax is due at the time of purchase. Just like buying a car on monthly payments.

 

[Willn]

Sorry that is an error. On standard two year contract upgrades it is a flat $30; on the EDGE program since you are purchasing a full price phone the entire sales tax is due at the time of purchase. Just like buying a car on monthly payments.

Verizon told me the opposite.
I only pay tax on sale amount $299, not the full amount. And I have to pay an activation fee of $30, no fee for upgrading.

Sorry I wasn't stating that you pay taxes directly but that you pay them indirectly as a fee. You have to read between the lines, full price doesnt pay any fees, subsidy does. Why? Because full price pays full taxes, subsidy pay discount price and discount taxes but the remaining tax has to be made somewhere hence the fee. The $30 fee you pay just so happens to make up the difference in taxes +or- a couple dollars due to different state tax rates. Verizon will never tell you these things just like they wont tell you the truth about subsidies either.

Here's what im paying for my preorder at full price (Michigan tax which is 6%):
Price Tag = $699
After taxes with no fees = $ 741.99
Here's what you pay at subsidy discount price (based on your numbers you where taxed at 6.6%):
Price Tag = $299
After taxes + fees = $349.79

Hopefully you see the similarities in the two different prices. Hey if you can get them to drop that fee then more power to you, but I doubt they will. Somebody has to pay the taxes and it won't be them. They pay for the phone up front but you pay it in the long term with an extra $15-$25 subsidy increase on your monthly bill. These darn carriers are sneaky sneaky. No wonder why they make billions lol.