Taxes, Fees & Surcharges

United States Taxes, Fees & Surcharges

Broadvoice administers customer billing in accordance with applicable federal, state, provincial, local, and other governmental laws, regulations, rules, and requirements relating to telecommunications, interconnected VoIP, emergency services, regulatory programs, and related services.

Governmental authorities and regulatory agencies may impose taxes, fees, assessments, surcharges, or similar charges on telecommunications, interconnected VoIP, emergency response programs such as 911/E911, relay services, universal service programs, and related products or services.

Broadvoice may be required or permitted to collect and remit applicable taxes, fees, surcharges, assessments, and other charges from customers based on the services purchased, service location, billing address, place of primary use, jurisdictional sourcing rules, or other applicable regulatory requirements.

Certain charges described below are Broadvoice-imposed administrative, regulatory recovery, or cost recovery charges. These charges are not taxes and are not government-imposed fees, even if they relate to costs associated with governmental, regulatory, compliance, or telecommunications programs.

Taxes, fees, surcharges, contribution factors, recovery charges, and the method for calculating them may change from time to time based on legal, regulatory, operational, or market requirements.

Broadvoice may separately itemize applicable taxes, fees, surcharges, assessments, and recovery charges on customer invoices. The charges that apply to a particular customer may vary depending on the services purchased, customer location, service location, billing address, usage, regulatory classification, and applicable law.

The names, labels, and descriptions used for taxes, fees, surcharges, and recovery charges on customer invoices are provided for convenience and identification purposes only. Such descriptions may not precisely reflect the legal characterization, calculation methodology, or regulatory basis of a particular charge, and the itemization of a charge does not constitute a representation that it is a tax or government-imposed fee unless expressly identified as such.

Additional information regarding federal telecommunications programs may be available from the Federal Communications Commission and the Universal Service Administrative Company. The federal Universal Service Fund contribution factor is established by USAC and updated periodically.

Federal Taxes & Surcharges

Federal Excise Tax

Federal excise tax is not generally applicable to many VoIP services; however, it may apply to certain taxable telecommunications services or other services provided by Broadvoice where required by applicable law. If applicable, Broadvoice may collect the tax from customers and remit it to the appropriate taxing authority.

Federal Universal Service Fund Fee

The Federal Universal Service Fund supports programs designed to promote the availability and affordability of telecommunications services, including services for high-cost areas, low-income consumers, schools and libraries, and rural health care providers.

Broadvoice may be required to contribute to the Universal Service Fund based on assessable revenues and may recover allowable contribution costs from customers as permitted by law and FCC rules.

The applicable contribution factor may change on a quarterly basis or as otherwise determined under FCC requirements.

Telecommunications Relay Services Cost Recovery Charge

Telecommunications Relay Services help individuals with hearing or speech disabilities communicate through telecommunications services. Broadvoice may recover costs associated with TRS contributions, compliance, administration, or related regulatory obligations where permitted by applicable law.

Regulatory Recovery Fee

The Regulatory Recovery Fee is a Broadvoice-imposed charge designed to help recover costs associated with regulatory compliance and telecommunications-related obligations. This charge is not a tax or government-imposed fee.

Costs recovered through this charge may include, without limitation:

  • Regulatory reporting, filing, registration, and compliance obligations;
  • Federal, state, and local telecommunications regulatory requirements;
  • 911/E911 support, administration, and compliance-related costs;
  • Telecommunications provider, carrier, or vendor charges;
  • Legal, accounting, audit, billing, and administrative costs related to regulatory programs; and
  • Other costs associated with providing regulated or communications-related services.

Federal Cost Recovery Charge

The Federal Cost Recovery Charge is a Broadvoice-imposed charge that may be used to recover costs associated with federal regulatory programs, compliance obligations, reporting requirements, relay services, universal service administration, number administration, or similar telecommunications-related costs.

This charge is not a tax or government-imposed fee unless expressly identified as such on an invoice.

Administrative Service Fee

The Administrative Service Fee is a Broadvoice-imposed charge assessed to recover a portion of administrative and operational costs associated with account servicing, billing systems, regulatory filings, customer support, record maintenance, payment processing, and related business support functions.

This charge is not a tax or government-imposed fee.

State & Local Taxes, Fees & Surcharges

Broadvoice collects and remits various state and local taxes, fees, assessments, and surcharges that may apply to telecommunications, interconnected VoIP, communications services, emergency services, equipment, or related products depending on customer location, service location, billing address, place of primary use, and applicable jurisdictional requirements.

License Taxes

Some jurisdictions impose license, occupation, privilege, or similar taxes for the privilege of conducting business, providing telecommunications services, or using public rights-of-way within the jurisdiction.

These charges may be calculated as a flat fee, percentage of receipts, or other amount determined by law. Where permitted, Broadvoice may pass through applicable charges to customers.

911 and E911 Taxes & Fees

911 and E911 taxes, fees, and surcharges fund emergency response systems, public safety answering points, emergency communications networks, and related public safety programs.

These charges may be imposed at the state, county, municipal, or local level and may vary by jurisdiction, service type, line, number, user, or other billing methodology.

State Universal Service, Lifeline, or High Cost Fund Surcharges

Certain states impose universal service, lifeline, high cost fund, or similar surcharges to support affordable telecommunications services, services for low-income individuals, customers with disabilities, underserved communities, rural areas, or high-cost service areas.

Broadvoice may collect and remit these charges where required or permitted by applicable law.

Telecommunications Relay Service Surcharges

Certain jurisdictions impose telecommunications relay service surcharges to fund relay services for individuals with hearing or speech disabilities. Broadvoice may collect and remit these charges or recover related costs where required or permitted by law.

Public Utility Commission Fees

Public Utility Commission, Public Service Commission, or similar regulatory agency fees may support state agencies responsible for overseeing telecommunications, communications services, or utilities.

These charges may be imposed directly on providers or collected from customers where permitted by law.

Communications Taxes

Certain states and localities impose communications-specific taxes on telecommunications, VoIP, video, data, communications, or related services. These taxes may be calculated based on gross charges, service type, usage, customer location, or other jurisdiction-specific sourcing rules.

Municipal Franchise, Right-of-Way, and Access Fees

Municipal franchise, right-of-way, access line, or similar fees may help local governments recover costs associated with rights-of-way, infrastructure access, maintenance, permitting, or telecommunications facilities such as conduits, wiring, poles, or related infrastructure.

Where permitted by law, Broadvoice may pass through these charges to customers.

Business & Occupation Taxes

Some jurisdictions impose business and occupation, gross earnings, privilege, or similar taxes on the privilege of conducting business within the jurisdiction. In certain locations, these charges may be passed through to customers where permitted by law.

Utility Users Taxes

Utility Users Taxes are imposed by certain jurisdictions on consumers of utility, telecommunications, communications, or similar services. These taxes are generally calculated as a percentage of billed services, though the applicable tax base and rate vary by jurisdiction.

Gross Receipts Taxes

Gross Receipts Taxes may be imposed on telecommunications providers based on revenues generated within a particular jurisdiction. Certain jurisdictions permit these taxes or related costs to be passed through to customers.

Sales, Use, and District Taxes

State and local sales, use, district, or similar transaction taxes may apply to telecommunications services, communications services, equipment purchases, rentals, leases, installation, or other taxable transactions depending on the applicable jurisdiction.

Deaf, Disabled Access, or Specialized Telecommunications Surcharges

Certain jurisdictions impose surcharges to support telecommunications access programs for individuals who are deaf, hard of hearing, speech-impaired, or otherwise require specialized communications assistance.

Poison Control Surcharges

Certain jurisdictions impose surcharges that fund poison control centers or related emergency response services.

Additional State & Local Taxes

Additional state, local, district, municipal, county, or special-purpose taxes, fees, assessments, or surcharges may apply depending on jurisdictional requirements, telecommunications regulations, service classification, customer location, service location, or billing address.

Tax-Exempt Customers

Customers claiming exemption from any tax, fee, or surcharge must provide Broadvoice with a valid, properly completed exemption certificate or other documentation acceptable to Broadvoice and the applicable taxing authority prior to the exemption taking effect.

Exemptions apply prospectively only and Broadvoice may continue to assess applicable charges until valid documentation is received and processed.

Customers remain responsible for any taxes, fees, or surcharges assessed against Broadvoice as a result of an invalid, expired, or improperly claimed exemption, including related interest and penalties.

State Tax Authority Resources

Customers may consult applicable state and local tax authorities for additional information regarding taxes, fees, and surcharges that may apply in their jurisdiction. Applicable agencies may include, without limitation, tax authorities or regulatory agencies in:

Arkansas; Arizona; California; Colorado; Connecticut; District of Columbia; Florida; Illinois; Indiana; Kansas; Maryland; Massachusetts; Michigan; Minnesota; Missouri; New Hampshire; New Jersey; New York; New York City; North Carolina; Ohio; Pennsylvania; Rhode Island; South Carolina; Tennessee; Texas; Utah; Virginia; Washington; and Wisconsin.

Canada Taxes, Fees & Surcharges

Broadvoice administers customer billing in Canada in accordance with applicable federal, provincial, territorial, and local telecommunications and tax requirements.

Canadian jurisdictions may impose taxes, surcharges, fees, assessments, or similar charges related to telecommunications services, VoIP services, emergency response systems such as 911/E911, regulatory programs, and related services.

Broadvoice may be required or permitted to collect and remit applicable taxes, fees, surcharges, and assessments to the appropriate governmental or regulatory authorities.

Broadvoice may separately itemize applicable taxes, fees, surcharges, assessments, and recovery charges on customer invoices based on the services provided, customer location, service location, billing address, place of supply, and other applicable sourcing or regulatory rules.

Additional information regarding Canadian tax requirements may be available from the Canada Revenue Agency. CRA guidance states that GST/HST generally applies to taxable supplies of property and services made in Canada, subject to applicable exceptions, and identifies telecommunications services as a category with specific place-of-supply considerations. (canada.ca)

National & Provincial Taxes & Fees

Goods and Services Tax

The Goods and Services Tax may apply to taxable supplies of goods and services in Canada, including telecommunications services, unless an exemption or zero-rating applies.

Harmonized Sales Tax

The Harmonized Sales Tax combines federal and provincial sales taxes in participating provinces and may apply to taxable telecommunications services or related products supplied in those provinces.

Provincial Sales Tax and Similar Provincial Taxes

Provincial Sales Tax, Quebec Sales Tax, Retail Sales Tax, or similar provincial taxes may apply depending on the province or territory, type of service, place of supply, customer location, and applicable tax rules.

National Regulatory Fee

The National Regulatory Fee is a Broadvoice-imposed charge that may be used to recover costs associated with Canadian telecommunications regulatory compliance, administration, legal and regulatory obligations, reporting, filings, emergency service support, and related operational costs.

This charge is not a tax or government-imposed fee unless expressly identified as such on an invoice.

Provincial 911 Taxes & Fees

Provincial 911 fees help fund emergency response systems, public safety answering points, emergency communications services, and related infrastructure throughout Canada.

These fees may vary by province, service type, telephone number, line, user, or other applicable billing methodology.

Canada Contribution Regime Fee

Canada’s telecommunications contribution regime supports telecommunications service availability in certain high-cost serving areas and is administered under CRTC requirements.

Broadvoice may recover applicable contribution-related costs where required or permitted by law.

The CRTC periodically updates the Canadian revenue-based contribution regime, including the minimum Canadian telecommunications services revenue threshold applicable to telecommunications service providers.

Broadvoice administers applicable charges in accordance with the CRTC requirements then in effect.

Telephone Number Storage Fee

The Telephone Number Storage Fee is a monthly Broadvoice-imposed charge that may apply to unused telephone numbers stored, reserved, or maintained beyond the allowable threshold included with a customer’s services.

This charge helps recover numbering, inventory, administration, and related operational costs.

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