Home / Clearly IP Trunking / Taxes and Gov Fees

Taxes and Gov Fees


ClearlyIP must collect taxes and fees on behalf of federal (US and Canada), provincial, state, and local governments. All telecommunications providers (e.g. companies that offer local, long-term, wireless services) must participate or contribute to these funds. We believe we are recouping these costs as equitable as possible and do not profit from these fees or taxes.


These taxes and fees can vary significantly by geographic location and where you use our services. Taxes are based on the location of your service and may change. 


Business Connect, Clearly Cloud, SIP Trunking, SendFax.to are services subject to taxes and fees which may include:


  • The Federal Universal Service Fund (USF) and various state and local taxes on voice services including Local Number Portability Administration, North American Numbering Plan, Telecommunications Relay Services (TRS) Fund, and other various regulatory fees.

  • Taxes on Usage Charges including International and Toll-Free

  • E911, Dispatchable Locations, and Call Back Profiles are separate from Federal government taxes. 

  • States and Local Municipalities often charge their own USF and e911 fees or other taxes.


Government taxes, surcharges, and fees are pass-through charges ClearlyIP pays to each entity.  We provide an itemization of these fees on your statement. They will be added and billed together with your regular monthly service.  We cannot tell you exactly how much taxes each particular account will incur, as these taxes are compiled and assessed by a third party with which we have teamed to ensure that we comply with the various and ever-changing regulatory landscape. Both the federal and state / local tax authorities are constantly changing tax rates and fees.

 

For more information from the Federal Communications Commission (FCC) on telecommunications billing, taxes, and fees, please visit:

 

Your Tax Rating Address (and how to change it)

We rate your taxes from your physical Address you have setup on each Cloud or Trunking Location in our Portal. If this is not the correct address on which we should base your taxes, you can Login to update your Location Address or contact support and inform them of your appropriate address.

 

Tax-Exempt Status

If you are a tax-exempt organization at any level, Federal, State, or Local, you may open a ticket with our support organization at https://support.clearlyip.com under the Customer Service department and provide your tax exempt status forms for your organization. You should attach any relevant documentation when contacting us about this, and if there are other documents we need or certifications we need you to fill out, we will let you know. For some Taxes-Fees below we have provided links to required forms from Clearly IP that you must fill out and provide a copy of with your request to submitted at your Customer Service department above.


We can then program your account to be exempt for future invoices only and we have no ability to reprocess existing invoices for exempt status.


The different Telecom Taxes and Fees can be broken down into the following categories

  • Transaction Taxes
    • Sales Tax (State, County and City Levels) - Must provide your Sales Tax Exempt form from your state.
    • Communication Tax (State, County and City Levels) Exemption Form Here
    • 911 Taxes (State, County and City Levels) - Exemption Form Here
  • Mandatory Government Surcharges
    • Federal Universal Service Fee (USF) and Federal IPCTS - Exemption Form Here
A non profit status will only exempt you from Transactions Taxes above. To be exempt from any Mandatory Government Surcharges you have to be one of the following exemptions from USF here





     RSS of this page