What is and is not subject to sales tax differs from state to state. In Michigan and Wisconsin, the two states in which we operate, all telephony services delivered to an address in that state are subject to sales tax—intrastate, interstate, and international. You should definitely check with your state’s sales tax authority before employing what Randy is showing. If your state only taxes intrastate telephony services, then I would agree that Randy’s calculation could be appropriiate.
I am not a lawyer or accountant either. Just want to caution people who are thinking about jumping on the calculation below. Dave > On Aug 5, 2015, at 11:40 AM, Randy Cosby <[email protected]> wrote: > > 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 < >> > <mailto:[email protected]>[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! >> >> >
