Taxes and Regulatory/Administrative Fees.
Below is a summary of the various taxes and fees that regulatory authorities mandate for US customers. Note that these taxes vary based on the service or product sold as well as the tax jurisdiction and are subject to change.
The taxes/charges that can be assessed include the following:
- State and Local Sales and Use Tax
- Utility Users tax
- E911
- Excise Tax
- Gross receipts tax
- Local telecommunications taxes
State and local jurisdictions determine the taxability of products and services. These taxability laws and regulations vary from jurisdiction to jurisdiction. Periodically taxes fluctuate due to changes in tax rates and/or changes to tax rules affecting the taxability of products or services.
E911 are monthly recurring charges pursuant to state or local law to finance emergency service programs. These charges are typically imposed as a flat amount on each access line capable of making a voice call. Likewise, several state and local jurisdictions impose telecommunications and/or utility users tax that may be imposed in addition to or in lieu of sales tax.
Other regulatory fees that can be assessed on our Talkdesk Phone and Dialer products and their associated usage include the following:
- Federal USF
- Regulatory Recovery Fee (including Federal TRS (Telecommunications Relay Service) Fund)
- North American Numbering Plan Administration
- Local Number Portability shared costs
- FCC Regulatory Fees
- Administrative Fee1
The FCC’s Universal Service Fund (USF) contribution factor is updated on a quarterly basis. For additional information see Historical USF contribution rate changes and Universal Service fact sheet.
How are sales & telecommunication taxes determined?
Taxes are driven by the address where Talkdesk’s services are consumed. This location should be your “sold to or ship to address”. Talkdesk uses your sold to address, or billing address if no sold to address is specified, to calculate taxes. If this address is not where you consume the majority of our products/services, please let us know so that we can update your account accordingly.
Resellers & Tax Exempt Customers
If your business is a reseller, 501(c)3 organization or is in possession of a state specific tax exemption certificate(s) please email a copy of the certificate(s) to [email protected]. Once your certificate(s) is received, we will verify your certificate(s) and update your account accordingly. Please note that even if you have a resellers or exemption certificate you may not be exempt from all taxes in every jurisdiction. In order to be exempt from Federal telecommunication-based taxes/fees you must provide us with a certificate that proves you are a federally registered reseller.
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1 Please note the Administrative Fee is a means to help Talkdesk recover a portion of the costs associated with telecommunications compliance and is not mandated by any government agency.