There are very few sales tax services that focus on telecom tax compliance. I’ve seen a lot of interest from this segment of the market recently – not only with VoIP providers but with established telco’s. I think this is mainly due to the disruption created in the market by Thomson Reuters (f.k.a. Tax Partners) and KPMG. Thomson Reuters has historically been the leading telecom tax service provider but their recent decision to leave the transaction tax outsourcing business has caused a number of companies to re-evaluate their plans.
These companies looking to make a change are limited in their options. Unique tax types and forms, and data formats not consistent with traditional sales and use tax create barriers of entry for service providers who want to serve the telco industry.
TaxConnex has been serving this industry successfully for several years now. We have a number of VoIP and traditional local/long distance providers that we work with today. I believe our success can be attributed to two factors:
- Our partnership experience and background having worked in the industry for almost twenty years; and
- Our Practitioner model that leverages CPA’s and tax professionals and the experience of our Practitioners in the telecom industry.
There’s really no substitute for experience.