Fees and taxes vary from state to state and even by county and/or city, but are generally composed of Federal and State taxes and fees. You will be able to see greater detail in each entry on your Billing page.
Types of Fees and Taxes
Federal Universal Service Fund
USF provides support to promote access to telecommunications services at reasonable rates for those living in rural and high-cost areas, income-eligible consumers, rural health care facilities, and schools and libraries". Learn more.
Federal Regulatory Assessment Fee
Fees are associated with administrative expenses incurred by the FCC for regulation and oversight-related activities.
State and Local Taxes and Fees
Individual items under this header are based on jurisdiction and will be broken out in your bill. In California, for example, such charges could include Local Utility Users Tax or/and CA Teleconnect Fund which provides a 50% discount on select communications services to schools, libraries, hospitals and other non-profit organizations.
Canadian Offices Only: GST/HST
The goods and services tax (GST) is a tax that applies to most supplies of and services in Canada. Generally, the harmonized sales tax (HST) is imposed in provinces that have harmonized their provincial sales tax with GST; these provinces are referred to as the "participating provinces."
The participating provinces are:
- New Brunswick
- Nova Scotia
- Newfoundland and Labrador
- Prince Edward Island
For the remaining provinces and territories, GST is imposed on taxable goods and services. In these provinces, there may also be a provincial sales tax or retail sales tax in place. For rates of each province, see GST/HST rates.
Learn more about the basics of GST/HST.
I'm a non-profit therefore I don't need to pay taxes, how will this affect me?
Non-profits are not exempt from Federal USF or the CA state assessments. These are telecom-specific regulatory assessments.
I have users in different states, how will taxes be calculated?
Taxes will be calculated from your billing zip code on file, regardless of where your employees reside.
How do I receive a tax-exempt status?
You'll just need to send our team your tax exemption certificate. We'll review the certificate and make a determination.
Please note, that certificate 501(c) 3 doesn't apply to the taxes we charge, which are sales tax (in some jurisdictions) and telecom taxes. If we were ever to get audited by a state the letter alone is not considered valid support to not charge you tax. We need the actual sales and use tax exemption certificate, granted by the state, to process an exemption.