Across industries, keeping up with indirect tax requirements requires considerable time and resources. Tax professionals must be familiar with the latest in complex tax legislation, administrative rulings, and audit procedures to meet compliance requirements.
For companies offering telecommunications services, indirect tax compliance reaches new levels of complexity. In addition to state and local sales taxes, organizations must consider state and local telecommunications excise taxes, utility user taxes, regulatory fees/surcharges, and 911 fees, to name a few. Providers of telecommunications service are also required to collect and remit these taxes and fees across a significantly larger number of individual jurisdictions.
For technology and software companies venturing into the telecommunications service space—with offerings including voice over IP, messaging, video and audio conferencing and streaming, internet access, and more, provided via wireless, wireline, cable, or satellite networks—navigating the indirect tax landscape can be overwhelming. Without in-house expertise on telecommunications tax compliance and full-time dedicated resources, you may not be aware of both the breadth and the complexities of your tax obligations.
To reduce risk and overall compliance costs, you need a tax determination, calculation, and reporting solution that can support all your indirect tax needs—both for your core product offerings and for telecommunications services.