Yeah, it is amazing. I spent some time today digging into taxes on
communications services, and voice in particular, the rabbit hole just
gets deeper and deeper the further you go down it.
On 8/5/2015 5:50 PM, Faisal Imtiaz wrote:
Dave you are correct in pointing out that stuff varies from state to
state...
To make thing interesting...(really interesting..)... check with your
state, because many will look at the USF Fee you are charging
(recovering from) the end user, is considered revenue and is subject
to communication taxes...
:)
Faisal Imtiaz
Snappy Internet & Telecom
7266 SW 48 Street
Miami, FL 33155
Tel: 305 663 5518 x 232
Help-desk: (305)663-5518 Option 2 or Email: [email protected]
------------------------------------------------------------------------
*From: *"David Sovereen" <[email protected]>
*To: *[email protected]
*Sent: *Wednesday, August 5, 2015 1:25:45 PM
*Subject: *Re: [AFMUG] Calculating USF
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]
<mailto:[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
<[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!
