is ativation fee charged every year?

No.

Does it apply to freedom plan as well or just annual, thank you for prompt reply 

The annual plan has a one time activation fee.

The monthly plan (Garmin calls it the Freedom plan) has a yearly program fee, in addition to the monthly fee for when the plan is active.

1. Thank You appreciate the answer 

So Garmin just told meyou will have to pat $39.99 each time you renew a monthly subscription.  I use mine 2 times a year for couple weeks each time.  Subscribe for 1 month + $39.99 activation fee each time.  Pretty harsh.  Its not an annual actuvation, its each time.

In the new model, introduced september 2024, there is no annual activation or fee anymore. You need to pay the activation fee when you subscribe for the first time, or when you cancel your subscription and resubscribe. If you have an active subscription it will renew automatically each month unless you cancel.

So if you subscribe for one month, cancel, and then re-subscribe after waiting a month, you pay the activation fee twice.

Alternatively you can switch to the Enabled state, which costs $7.99 per month (USA pricing, local prices may vary). In Enabled state you can still use your device but you have to pay additionally for each message/tracking point/weather request (instead of having an allotment).

Thanks for the reply.  I thought I had switched to Enabled state.  Actually thought those with active freedom plans using month to month would be defaulted to that.  Currently they want another $39.99.  ;^)

People with suspended freedom plans will be migrated to the Enabled state. People with an active freedom plan will be moved to the corresponding plan in the new model (i.e. Essential, Standard or Premium). This will happen on the next renewal date of the annual freedom plan, after December 2024. There will be no activation fee or annual renewal when the migration happens.

All is explained in Frequently Asked Questions on September 2024 inReach Consumer Subscription Plan Changes and inReach Consumer Enabled Plan vs. Suspended Plan.