Netflix Charging Incorrect Taxes

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I filed an IRS form concerning Netflix charging too much taxes. Then I contacted Corporate via email. They were to address a customer service rep by name. Netflix then lowered my tax from 7% to 5.35%. I live in Florida and I am sure that they did not make the same offer to everyone being over charged? People need to file tax fraud forms with the IRS and show copies of their bills to them.

That is how we can stop Netflix and start an investigation process that will really hurt them!

John B

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Netflix Streaming Tax Fraud In Florida
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Dec 30, 2013 #765835

My tax rate has changed 5 times this year alone. I am in Panama City Florida. Tax varies from 34¢ to 40¢ I just noticed today. :( I don't mind paying taxes just kind of frustrated that it has been done without my knowledge and so suspiciously-- changing constantly-- it has literally fluctuated every month for the last year.

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Nov 12, 2013 #741304

I have the same issue. I called to complain that I was being charged the Los Angeles 10% rate, when I don't live there any longer, and their only response was to say that I was being charged the correct rate. They didn't even explain their rationale. I canceled my account immediately.

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Oct 28, 2012 #561331

Just got off the phone with a Netflix rep, I called to complain about the $8.39 charges that used to be the advertised $7.99, and he said that it's because my state is taxing me (possible "tax change" he says)
This is ***, they're all coming up with fake reasons and from reading everyone else's complaints it seems like they're committing a tax fraud. I instantly had them cancel my account
Everyone should just bombard their social media sites with complaints about this to alert the other 27 million users (because yes, like someone else said, even though it may be a couple cents for everyone, that equals out to thousands of dollars in collection total!!)
.40 cents is not much to cry about but it's the principle, and well, it does add up over time. I don't feel like being charged random amounts and knowing that they're getting away with this makes me even more pissed.

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Aug 13, 2012 #528064

Filed a complaint against Netflix with the Florida Attorney General

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Aug 13, 2012 #528062

First, I'm in Clearwater, Fla., and I am on the $7.99 plan. Over the past year I have seen the taxes charged on my Netflix account vary from month-to-month -- both UP and DOWN. For example, $8.62 (7.88%) in Jan. and Feb. Down to $8.54 (6.88%) Mar. through Jul. Now up to $8.75 (9.51%). I don't mind paying taxes so long as I know what they are. If Netflix knows enough to charge itemized taxes on a state-by-state basis then they know enough to itemize them on my bill statements.

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St Petersburg Florida

Aug 06, 2012 #525093

I just had a "tax" increase added to my Netflix. My $7.99 bill raised from a 7% tax the last few months to now a 8.5%. The representative initially told me it was my credit card creating the charge and then tried to tell me we had a state tax increase before she diverted my claim. Yes, it is relatively small amount to spend time over BUT the principle is important. Incidentally, she also stated that her state didn't have a tax. Sounds like the Netflix staff was trained on "tax" inquiry rebuttals.

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Aug 03, 2012 #523438

Just renewed my Netflix last night at the rate 0f $7.99, only to find I was charged $8.58 plus the $1.00 'verification fee.' I called and was told "your institution" is charging the tax, not us -- claiming that the tax assessment was not their doing (was she actually trying to imply that my bank is charging me tax on Netflix's service?!). When the representative realized I knew better than that, she quickly diverted from that claim. I see nowhere on the site about charging a tax; furthermore, Netflix is denying the charge is at their end. While the amount is minimum, the issue is substantial. Netflix's claims that they have over 27 million subscribers -- if this is true, and each subscriber were charged a tax averaging between 7-8% "tax," that's an unjustified collection of $16,000,200 (a collection they are not even claiming responsibility for!). THAT, is no small issue. Clearly, I immediately terminated my account.

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Apr 04, 2012 #460686

@AEB The state of CT charges a 1% tax on computer services. From
"Computer and Data Processing Services: The termination of the tax on computer and data processing services scheduled to take place on July 1, 2004, has been repealed. The services remain taxable at 1%."

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Mar 08, 2012 #445158

I called to complain about taxing my account the *** at netflix told me my bank the the one charging me tax I told him he was full of ***. Taxing is one thing but overcharging a tax is another 8.78% in Florida no 7% where I live plus i called Dept of Revenue and was told Florida has no tax on streaming. If i can get that in writing its time to jam them up with the Florida attorney general and IRS for tax fraud. NetFlix SUCKS I hope they get busted for tax fraud

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Mar 06, 2012 #443266

I live in FL and am experiencing the same issue. I called and was told as well by Netflix they just charge the flat 7.99 that it has to be the state charging the tax. Interesting since they never did before.

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Laura B

Jan 23, 2012 #414432 Waikoloa Village, Hawaii

I just switched from streaming+DVDs to only streaming with netflix. I contacted them because they were charging me a tax rate of 7.87 percent and as an Escambia county resident I should at MOST be charged 7.5 percent. The response I received from them was that this was because of the Florida Department of Revenue. I have contacted the FDR and was told that there is no such higher tax and that I should report the issue. I am now sending a copy of my bill to the fraud investigation department of the FDR so that they can investigate. I wonder how many other people are being incorrectly taxed and do not know they are being taken advantage of. I hope Netflix gets fined big time!

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Jan 18, 2012 #411488

You morons have too much time on your hands. I do not have the time to fight over something this small.

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B Davis

Dec 28, 2011 #399120

I called last month when they over charged me for tax. I didn't think they could charge tax for the streaming service either, but whatever. The customer service said they were charging 7.87%. I told him they were wrong the FL tax is only 7%, he told me he was sending a review request to somebody??? Then again this month they overcharged me again. When I called this time they told me to contact the FL dept. of Rev. because they had a contract with them and they were allowed to charge that much. I have just about had it with netflix!!! Blockbuster or somebody else needs to get better so we can stream from the Wii or xbox and then I will switch!!

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Nov 19, 2011 #377020


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S in Florida

Nov 17, 2011 #376134

I just called them. I was told that it was a new tax for streaming that is now charged in 20 states. He said it was a STATE tax, not county. My increase this month was 8%. He said that there was no tax in Oregon where he is. So, I went in & changed my address to an Oregon street & zip code. I will wait & see if that works with my CC on file. They really don't need an address if I'm not getting DVD's!

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Nov 15, 2011 #374702

I'm in Ky. I've been using Netflix for 20 months without tax. Now my November bill was charged tax.
I heard nothing about a new tax law.

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Nov 11, 2011 #372710

I live in CT and only stream movies from Netflix. I was paying $7.99 per month and noticed a charge for $8.07 in November 2011. I was not notified of a price change and checked my account and saw that it was tax. I called Netflix and they told me that my county is charging tax to stream movies. I don't have a tax with VUDU and it's not the small increase, but the principle of what they're doing. Is my county charging tax or am I being duped by Neflix? How can I find out?

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John B

Nov 07, 2011 #370847

Netflix is overcharging in Florida.
We need to complain to them and the IRS. Streaming is a non tangible and therefor should not be taxed. It is not the amount they are charging but rather the principle of the matter. Everyone in every state should NEVER have to pay taxes on a streaming service. Otherwise we will NOT be able to use the internet to its potential.

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Nov 07, 2011 #370810

I have been using Netflix for almost a year now. Streaming only. I have never been charged tax before ($7.99 only). Now in November, I see that Netflix is charging me $8.62. I live in Florida. That surprised me.

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