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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.


Refund of Taxes Previous Invoices

No we have no ability to refund taxes on previous generated invoices. Once you prove your Exemption Status all future invoices will be marked as exempt from the taxes you have proper exemption on. We have no ability to reprocess existing invoices for exempt status.

 

Sales and Use Tax-Exempt Status

If you are a Sales and User 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.


Telecom Specific Fees and Taxes

For Telecom Specific Fees and Taxes we have provided links to required forms from Clearly IP that you must fill out. Upon Submitting these forms at the links below a ticket will be opened with our Exemption team and they will communicate back with you as they review your submissions.


The 3 different Telecom Taxes and Fees can be broken down into the following categories

  • Sales Tax (State, County and City Levels) - Review your 2 options below on how to submit your Sales Tax Exemption to us.
    • Resale Exemption - If you are exempt because you are reselling the service please fill out this Uniform Resale Certificate Here.  This certificate has lots of notes for different states on when it can be used so please review the document fully and for more information you can review the website here on the use of this Certificate. 
    • Non Profit Exemption -  A non profit status will only exempt you from Sales Taxes above. Email your non profit exemption certificate from your State to customerservice@clearlyip.com to have your account setup for Sales Tax Exemption if you are a Non Profit and your state allows for Sales Tax Exemption for you.

  • Communication Taxes and Surcharges (Includes 911, 988, PUC and other Surcharges at the State, County and City Levels) Exemption Form Here

  • Federal Taxes and Surcharges including Universal Service Fee (USF) and Federal IPCTS - Exemption Form Here
    • To be exempt from any Federal Government Surcharges you have to be one of the following exemptions from USF here. Non profits do not qualify for exemption from these federal surcharges. 

Regulatory Recovery Fee

The Regulatory Cost Recovery Charge is a charge assessed by ClearlyIP associated with payment of government imposed fees and to recover the costs of compliance with government imposed regulatory requirements.  This fee is between 3-4% and does not exceed the cost for ClearlyIP spends in compliance for different government and agency compliances.





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