3 min read

Telecom Tax and Other Specialty Transactions Taxes

By Robert Dumas on Tue, Feb 02, 2021 @ 11:00 AM

Sales tax is broadly defined to mean any tax that is charged to the end-user customer by the retailer of property or services. Though this definition is correct, it does not always provide a complete picture of a business’s transactions tax liabilities.

Topics: telecom tax taxability
3 min read

Sales Tax and Your 2021 Growth Goals

By Robert Dumas on Thu, Jan 21, 2021 @ 11:00 AM

If your online company looks to expand its interstate sales in 2021, know one thing: Your plan involves risks and new responsibilities. The key is learning how to manage both, as sales tax non-compliance or errors can bring stiff penalties.

Topics: sales tax telecom tax
3 min read

How to Choose the Right Sales Tax Provider

By Robert Dumas on Tue, Jan 19, 2021 @ 11:00 AM

Picking the right provider to handle your business’s sales and use tax compliance is a big decision.

Topics: sales tax telecom tax
3 min read

Telecommunications Tax Exemptions

By Robert Dumas on Thu, Jan 14, 2021 @ 11:00 AM

TaxConnex works with a lot of telecommunications service providers that are new to the business. Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  They may have infrastructure in place to support the sales tax requirements of their existing business, but the telecommunications service presents a different set of issues.

Topics: sales tax telecom tax
4 min read

Taxes in the Telecom World: Misconceptions and Advice

By TaxConnex on Tue, Sep 22, 2020 @ 11:00 AM

This article was written for the Atlanta Business Chronicle Leadership Trust. To see the original post, click here

Taxes are an integral part of the telecom world. Taxes, fees and government surcharges on telecommunications services increased from 19.1% to 21.7% in 2019 (even as average monthly bills for consumers actually dropped).

In talking with countless telecommunications service providers about their various tax and regulatory requirements, there are some recurring themes I hear that can be troubling. These recurring issues tend to pop up with new VoIP service providers. Perhaps they’ve been in business for years previously — and they may have even had various sales tax obligations historically — but they are now offering VoIP services that expose them to a completely different set of tax and regulatory obligations.

Topics: telecom tax taxability
2 min read

How To Qualify For Telecommunications Tax Exemptions

By TaxConnex on Thu, Jul 09, 2020 @ 11:00 AM

At TaxConnex, we work with a lot of telecommunications service providers that are new to the business.  Many are existing MSPs (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.

Topics: telecom tax
3 min read

Telecom Faces Special Challenges with Taxes and Fees

By TaxConnex on Tue, May 26, 2020 @ 11:00 AM

If you’re a telecommunications services company, you face greater trials than other businesses when complying with federal, state and local jurisdictions.  In addition to state and local taxes, your business may also be subject to various federal and state regulatory obligations.

Topics: sales tax compliance telecom tax
1 min read

Top 10 Tips for Tax Compliance in Telecom and VoIP Providers

By TaxConnex on Thu, Mar 26, 2020 @ 11:00 AM

There are many misconceptions when it comes to telecommunication and VoIP taxes. However, if we had to narrow it down to the two most fundamental misconceptions that impact everything else, it would be: 

Topics: sales tax compliance telecom tax
1 min read

4 Activities that Can Create Sales Tax Nexus

By Brian Greer on Mon, Jun 12, 2017 @ 09:00 AM

Knowing where to collect and remit sales tax for your business becomes more complicated all the time, thanks to the sometimes ugly world of sales tax nexus. If you have nexus in a state, you are responsible for collecting sales tax there.  Here are four business activities that can trigger nexus that are somewhat under the radar:

Topics: sales tax nexus telecom tax
2 min read

How To Qualify For Telecommunications Tax Exemptions

By Brian Greer on Tue, Oct 04, 2016 @ 11:07 AM

TaxConnex works with a lot of telecommunications service providers that are new to the business.  Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  

Topics: telecom tax
2 min read

Myths and Misconceptions - A Guide for Telecom Tax Compliance

By Brian Greer on Fri, Aug 26, 2016 @ 02:00 PM

I speak with several companies each week that are in the process of launching a new VoIP telecommunications service.  Misinformation abounds including……”Since it’s delivered over the Internet I thought it was tax free.”  I hear the following comment also…..”My carrier is collecting and paying all the taxes and fees for me.”

Let me dispel these rumors. 

First, VoIP is both taxed and regulated.  It is not tax free. 

Furthermore, carriers are generally only collecting those taxes and fees that apply to the wholesale transaction when they sell the service to you.  As a telecom reseller, you are exposed for the applicable taxes and fees on the mark-up at least and potentially for the taxes and fees that you have already paid to your carrier.

Topics: telecom tax
1 min read

Communicating Your Sales Tax Needs to IT

By Anne Birkmann on Tue, May 10, 2016 @ 10:30 AM

Sometimes in the sales tax world, tax and finance departments need to rely on their IT department to get sales tax added to an invoice correctly or to get reports for various reasons. 

Topics: sales tax telecom tax
1 min read

Top 10 Guide for Telecom Tax Compliance

By Brian Greer on Tue, Apr 05, 2016 @ 10:40 AM

I speak with several companies each week that are in the process of launching a new VoIP telecommunications service.  Misinformation abounds including……

Topics: telecom tax
2 min read

Telecommunications Tax Exemptions

By Brian Greer on Tue, Mar 29, 2016 @ 02:51 PM

TaxConnex works with a lot of telecommunications service providers that are new to the business.  Many are existing MSP’s (Managed Service Providers) or IT management companies that would like to expand their service offering and become “stickier” with their clients.  They may have infrastructure in place to support the sales tax requirements of their existing business, but the telecommunications service presents a different set of issues. 

One of these issues is related to establishing the ability to purchase telecommunications services from their carriers on an exempt basis under the premise that they will be reselling the service.

Topics: telecom tax
1 min read

Supplement to “The Technology Sales Tax Footprint”

By Brian Greer on Tue, Jul 21, 2015 @ 10:07 AM

In our recently published white paper titled “The Technology Sales Tax Footprint” we described the constantly changing environment related to the applicability of sales tax to various technology related “services”. As state and local jurisdictions continue to push the boundaries of sales tax nexus and expand the definition of what’s taxable, businesses need to monitor the situation proactively. Two recent updates in Chicago are interesting:

Topics: sales tax nexus telecom tax sales tax news
3 min read

Sales and Use and Telecom Tax....Oh My!

By Carol McIlvaine on Mon, Jul 28, 2014 @ 11:17 AM

After making a career in multi-state corporate sales and use tax, I am still amazed at how complicated this industry is.  As if understanding the concept of sales and use tax isn’t difficult enough, throw in seller’s use, gross receipts, retailer’s use, excise tax, vendor’s use, B&O, and the daunting world of telecom taxes, it can be confusing to even the most seasoned professionals. There are many different industries and each one has its own set of regulations and can be quite complicated to navigate without help. 

Topics: sales tax telecom tax