Sales, GST, and Telecommunication Taxes

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Written by Telnyx Sales
Updated over a week ago

Yes there are US Sales and Telecommunications Taxes!

What are sales & telecommunication taxes?

Sales & telecommunication taxes are taxes charged on the sale of a product or service. These taxes may be assessed at the State, County, and Municipal jurisdictional levels.

Each jurisdiction may categorize Telnyx’s products differently, and these jurisdictions may have different regulations regarding the applicable taxes.

Why is Telnyx charging US Sales or Telecommunication Taxes?

Telnyx is required to collect any applicable state and local taxes, telecommunications taxes, and other indirect taxes on the sale of its services in jurisdictions where it is determined to have nexus (economic presence or substantial presence) based on the address where the service or services are consumed by the customer.

How does Telnyx determine my address for tax purposes?

Telnyx will use the address associated with your primary portal account for tax purposes by default.

If you are using Telnyx services in a location that differs from this address, you can add a service address to your portal account. Navigate to "Account Settings", click "billing" and then "service address".

Alternatively visit the link directly:

Service address section.

Adding a Service Address in the Mission Control Portal

How does Telnyx determine the tax rate?

The following criteria are used to calculate the tax amount:

  • A customer’s service address

  • Tax regulations in the state and the local jurisdiction that apply to Telnyx

  • The types of products and services consumed by the customer in the month

  • Tax status of the customer in a given jurisdiction.

How will I know how much I owe in taxes each month?

In the Summary section of the monthly invoice you receive from Telnyx, you will see a line item for the total tax charge. The invoice will also include a dedicated section for tax charges showing the breakdown by tax type.

How does tax reflect on my Telnyx account balance?

Telnyx will calculate and apply taxes to your account daily. We will deduct the tax amount from the customer’s balance based on usage and purchases on the following calendar day.

Can I get a tax estimate for the upcoming month?

Since taxes are calculated based on multiple factors like service usage and effective tax rates, there is no way to provide an accurate estimate in advance.

Tax Exemptions

Subject to all applicable laws and changes thereof, customers who qualify for tax exemptions should reach out to with appropriate exemption certificates or documents.

If I update my address, will I be provided with past invoices and charged for past taxes?

No. Per our standard operating procedures, we do not adjust the billing or invoicing of a closed billing period. Your past months' taxes will not be recalculated and charged. No previous invoices will be regenerated.

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