Telecom Taxes for VoIP Providers
Most days I talk with at least one company that’s preparing to launch a VoIP service. Various platform providers have made it simple to deliver the service; however, the various sales and telecom taxes (not to mention the regulatory requirements) add a great deal of complexity to a start-up business. Consider a company preparing to launch a VoIP service and the various taxes and fees they must contend with – sales tax, communications services tax, utility users tax, gross receipts tax, 911 fees, USF contributions, FCC licensing…the list is seemingly endless.
Defining how these various taxes and fees apply to a provider’s services is usually the first step. The next step is implementing a compliance solution to manage the process long-term. During this step, it's important to leverage the right expertise along the way. There are some one-stop shop answers but they deliver a watered-down version of what is needed. A best of breed solution with well coordinated service providers is a better approach. TaxConnex along with CCH SureTax and The CommLaw Group have formed the Cloud Commpliance Solution to provide this best of breed solution.
In this solution, CCH SureTax provides a SaaS-based calculation service that calculates the various telecom taxes and fees to add to each invoice. The CommLaw Group and their affiliate The CommPliance Group manage the ongoing regulatory reporting requirements while TaxConnex manages the ongoing tax reporting requirements.
A comprehensive approach to telecom taxes and fees managed by firms with specific domains of expertise will minimize compliance risk.