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Sales, GST, Telecommunication Taxes and USF Fees

Details of relevant fees and taxes for US Telnyx customers

Telnyx Sales avatar
Written by Telnyx Sales
Updated over a week ago

Contents:

Frequently Asked Questions


US Sales & 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: https://portal.telnyx.com/#/app/billing/service-address

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 tax@telnyx.com 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.

USF Fees

What are USF fees?

The Universal Service Fund (USF) is a federal fund aimed at promoting access to telecommunications services for all Americans, regardless of location or economic status. It is a program administered by the Federal Communications Commission (FCC) and requires companies providing interconnected VoIP and telecommunications services to retail customers, including businesses and residences, to contribute to the USF. It is calculated as a percentage of a company’s end-user telecommunications revenues.

You can find more information about the Universal Service Fund at: www.fcc.gov/general/universal-service

How does USF affect my invoice?

All customers operating in the United States and purchasing Telnyx interconnected VoIP or telecommunications services will be subject to a USF passthrough fee each month based on their usage of those services, in addition to federal, state and local regulatory fees and taxes.

More on sales and telecommunication taxes here.

Which Telnyx services are subject to the USF fee?

USF will be applied to telecom and/or VoIP consumption and Programmable Voice (US Outbound & Inbound) services. Only the Interconnected VoIP portion of these products will be subject to USF.

How will I know how much I owe in USF fee each month?

Under the dedicated section for tax charges on your Telnyx invoice, you will see the breakdown by tax type with a line-item indicating USF fee applied in that month.

Can I be exempt from the USF fee?

If your company files the FCC Form 499-A and makes USF contributions directly as a provider of telecommunications, your company may qualify for an exemption from USF fee that we impose on USF-assessable services. Please reach out to tax@telnyx.com with appropriate documents to apply for exemption from USF fee. Also note that you are required to renew this exemption certificate annually.

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