Spotlight: Making Telecom Taxation Simple

Automated Tax Rating and Invoice Generation

Service providers who provide landline, wireless, cable, internet, or VoIP are required to understand the complex nature of taxes and fees imposed on these services. The specific taxes imposed on telecom services can vary depending on the country, state, or jurisdiction.

Making telecom taxation simple
Communications tax determination

Here are some common taxes and fees that could potentially apply to communications services:

  • Sales Tax: This is a general tax imposed on the sale of goods and services. The rate may vary depending on the location.
  • Federal Universal Service Fund (USF) Fee: In the United States, the USF fee is imposed on telecommunications services, including VoIP, to support expanding telecommunications services in underserved areas.
  • Emergency 911 (E911) Fee: This fee helps fund the infrastructure and systems required to provide accurate caller location information in case of emergency calls.
  • Regulatory Fees: Some jurisdictions impose regulatory fees to cover the costs of regulating telecommunications services.
  • State and Local Taxes: Additional taxes can include specific surcharges imposed by local governments depending on the jurisdiction.

It's important to note that taxes and fees can vary significantly depending on location. Contacting a tax compliance professional for the most accurate and up-to-date information regarding telco taxes is advisable.

TimelyBill helps to automatically bill these complex taxes and fees.

We automate the tax rating aspect of generating telecom invoices by leveraging our relationships with some of the top telecom tax databases.

Telecom taxes can be imposed as a flat fee or as a percentage of the cost of the telecommunications services. It may also be collected as part of the monthly bill that a person or business receives from their provider.

Using prebuilt connections with tax engines, our robust taxing component enables CSPs to accomplish the following tasks:

  • Keep current on rates for states and jurisdictions
  • Geocode customers locations
  • Customize rates and rules
  • Categorize revenue for better reporting
  • Reduce the risk of audit liability or lost revenue
  • Look up US and international rates
  • Refund taxes with service credits or adjustments
  • Override tax codes and descriptions
  • Create tax grouping for invoice display
  • Generate reports for internal and regulatory purposes

TimelyBill can help solve your telecom tax issues by applying up-to-date rates, automating complex math, and accurately presenting them on customer invoices.

We have connectors to three of the most widely used and trusted telecom tax engines for billing telecom services: Avalara, Compliance Solutions (CSI), and CereTax.
As an industry leading billing platform, TimelyBill's tax rating component enables us to provide accurate taxation.

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