Taking this further... If you have to charge/pay state taxes that are
not specified as "Gross reciepts" taxes, you charge/pay on the
intrastate portion: 35.1% x Tax rate. Using Dave's example assuming a
7% state sales tax rate:
$25 VoIP Bundle
35.1% = Intrastate = $8.78 Intrastate
$8.78 * 7% = $0.61 state sales tax due.
Not an accountant or lawyer, but this is what my telecom consultant has
advised us to do.
Oh, and each municipality has a different tax rate here that is added to
the state sales tax base. Joy.
Randy
On 8/5/2015 8:53 AM, Josh Luthman wrote:
Excellent answer!
Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373
On Aug 5, 2015 10:50 AM, "David Sovereen" <[email protected]
<mailto:[email protected]>> wrote:
USF is a tax on interstate phone services.
If you charge for intrastate and interstate services separately,
you can tax the interstate charges at the USF rate. If you do
not, and you can determine the percentage of minutes that are
interstate vs intrastate, you can charge USF on that percentage of
the total charge. There are some reporting requirements if you
are doing this. Otherwise, you can use the Safe Harbor amount
which assumes that 64.9% of the bundles interstate+intrastate
charge is interstate and charge USF on that.
Example:
$25 VoIP Bundle
64.9% = Interstate = $14.40 Interstate
$14.40 x USF (presently 17.1%) = $2.46 USF due
Dave
> On Aug 5, 2015, at 10:12 AM, Simon Westlake
<[email protected]
<mailto:[email protected]>> wrote:
>
> I seem to vaguely remember someone once telling me it is
calculated as a percentage of the tax that you assess your
customer, but that doesn't seem right to me. Googling has proved
fruitless. Anyone here collect USF and, if so, how do you
calculate it? Or even if you don't collect USF but know how it
should be done, that'll work too!
