LV & a Tax Scam? Any lawyers or tax experts here?

  1. I started talking about this issue in my thread: No Dustbag?!? Since then LV graciously agreed to remedy the situation by sending me a box for my beautiful new Degrade Monogram Bandeau (the purple mirage one!). So no hard feelings there...still in LoVe with LV!

    BUT... LV taxed me on the fedex shipping charge when I purchased my bandeau via 866 (it shipped via Chicago's boutique). I asked about this tax and the SA researched it for a second and replied it was their policy to tax shipping. :tdown: The issue is, can they do this when there is no actual tax imposed on them for shipping??? :confused1: Fedex charges a flat $10 charge, so why the tax? :shrugs: I think it is because it is easier for them to tax it (they just put a $10 item charge on my receipt and it got taxed just like the bandeau). Now this tax only resulted in about an extra $1 charge, but based on that SA's "policy" response to my question, LV stands to make LOTS of money off us by doing this! :cursing: Seems illegal, unfair, and just plain not nice! :push:

    I am in law school, and we are told that we might feel litigious during this stage in our lives...but correct me if I'm wrong, but this doesn't seem right at all!
  2. In Mass., shipping is taxable; it depends on your State. If they are charging tax, and not suppose to, it brings up another question - are they remitting it to your State or pocketing it? States do audits to find this stuff but I would check with your State Dept. of Revenue web site. It should say if shipping is taxable in your State.
  3. How confusing! tax and all that is waaaay above my head.
  4. Yup, it's not just LV that does this, it's a LOT of companies. If you get catalogs in the mail, look at the order form...on most, you have to add everything up including shipping, THEN add in the tax.
    I don't think it's fair either.
  5. I don't like that either but yes even the furniture store in my town taxes the delivery charges.. After I find out about that I usually use the ground shipping instead of express, if you order from the store near you it doesn't make any diff. anyways.
  6. I just threw most of my catalog's away yesterday, but I have a Smartpak Equine catalog and shipping is added AFTER tax. Oh and I just checked Victoria's Secret and its added BEFORE tax. You bring up a point worth looking into! Common practice?

    I guess I am suspicious because Fedex only charges $10 flat...hmmm SOOO do they already include tax (which would make sense if its a taxable service...taxes not being optional)? Or do they not tax LV and then LV taxes us? If the tax is included in the $10 fedex charges, does that mean we are getting taxed twice??? :shrugs: Meaning the second tax is going to LV. Sorry that this is getting confusing!
  7. Fedex tax is built in to the price they charge LV, then LV is passing on the shipping charge AND adding tax. LV is only remitting to the State the tax they collect from us and Fedex is remitting the tax built into their price. I guess its more a question of are we being overcharged for shipping (not are we double taxed). I hope that makes sense!
  8. ive never noticed! but im going to look now!
  9. Hehehe.. I'm also in law school and all I can think about now a days when I go about is "is this consideration?" or "was that a contract ?!"

    I work in retail as well and we charge the tax on top of shipping since we are given the rate by Canpost/Fedex and then we are supposed to pay them the rate + tax. I really hope that's what LV is doing, although if it's a flat rate otherwise, that is rather (patently) unfair !
  10. It depends on what state sales tax is being charged. some state have sales tax appled to all services (including shipping) while others only apply sales tax to the actual item. I had LV apply tax to a clothing item and where I live there is no tax on clothing, so I had to contact LV and they had to credit me at the time. So LV is not always right, you need to educate ones self and know what your own state sales tax laws are.