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.

In which States does Telnyx charge taxes?

Telnyx will start collecting taxes in the following states:

  • Illinois

  • Florida

  • Texas

How does Telnyx determine my address for tax purposes?

Telnyx will use the most recent billing address on your account for tax purposes by default. The billing address is the address associated with the payment method in your Mission Control Portal account.

If you are using Telnyx services in a location that differs from your billing address, you can add a service address to your portal account. Navigate to the top right-hand corner, select ‘Billing Overview’, enter the information for the Service Address as in the screenshot below, and click ‘Create’.

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 or billing 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.

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