Automate complex telecom and communication services tax to reduce risk and improve audit performance.
Communications tax complexity exploded with the introduction of non-traditional communication services like streaming, IoT, satellite technology. Phone service providers are no longer the only companies with comm tax obligations. A typical phone or internet bill may have several taxes and fees applied, and the telco may be processing anywhere from tens of thousands to millions of invoices on a given day. With federal jurisdictions, emerging technologies, and large numbers (transaction volumes, returns forms, individual fees and taxes, etc.), the tax, finance, and IT teams have a lot to gain from tax automation, location precision, and exemption management.
Vertex offers robust, proven tax determination solutions to integrate with your communication billing system for reduced risk. Let us help you grow with confidence and improve compliance processes.
Robust tax content to automate complex calculations for complex services worldwide.
Continually updated tax content supports tax determination and the calculation of taxes, surcharges, and fees for traditional telecom service providers, as well as non-telecom companies who now provide communication services.
In VAT regimes, telecommunications services generally fall under standard VAT rates. Communication service providers face unique challenges with place of supply rules, reverse charge mechanisms for B2B transactions, and evolving real-time reporting requirements.
Using Vertex O Series, take advantage of real-time cross-border and domestic tax determination logic automating location and liability determination in countries across the globe. Examples of our unique VAT categories in the telecom space include:
Vertex leverages the latest geospatial technology to pinpoint tax jurisdiction assignment for improved tax accuracy. Even locations with no traditional street address, like cell towers, can be supported using longitude and latitude coordinates.
Set up custom taxability rates and rules, franchise fees, delivery and recycling fees, and bundled services to meet your specific business needs. Easily update configurations as your business grows.
A key datapoint in determining tax is where the product is used or consumed, or where the service is performed. For North America transactions, Vertex O Series considers multiple locations (originating, determining, bill to, ship to, service, where the switches are located, etc.) when determining tax on communication services like:
Vertex O Series enables complex rules to apply taxes and fees to bundled services or “packages” that may include home Internet, premium television, landline phones, and more. These rules consider not only the types of services included, but where and how each of those services will be used.
Add Vertex solutions to manage periodic returns easily in-house, or outsource to Vertex.
Leverage software or outsourcing services to streamline returns and filings to local tax authorities worldwide.
Automate the process of generating monthly returns for SUT and VAT with Vertex tax returns software. Automate the generation of signature-ready filings to streamline internal processes, minimize errors, and reduce audit risk.
Outsource the entire SUT or VAT compliance process (including remittance) to Vertex and refocus the in-house team on higher value work. You’ll have a single resource to manage all your local filings. Outsourcing compliance can help you expand into new markets quickly and confidently, manage payments in multiple currencies, and avoid late filing penalties.
FAQs
The telecommunications industry in the U.S. faces some unique challenges related to indirect tax compliance, such as:
Additionally, there are considerable challenges for those operating outside of the U.S., including:
