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Taxes

  • Understanding taxes, surcharges, and fees

    In addition to the monthly service charges billed for Plivo services, your monthly invoice may include surcharges, taxes, and fees based on your service type and geographical location, among other factors. Certain taxes, surcharges, and fees may appear on your invoice as separate line items. The following are some examples, but they are not exhaustive.

    1. Federal communications program fees
      • Carrier Cost Recovery Fee (CCRF)
        • Carrier Cost Recovery Fee (CCRF) is a percentage of the invoiced charges for voice and phone numbers. CCRF only applies to calls that originate or terminate in the United States. It is not a tax, but rather a pass-through charge that we use to recover the costs of federal regulatory fees. It includes payments Plivo is required to make to federal funds such as the Telecommunications Relay Services (TRS) fund and the FCC Regulatory Fee (VoIP).
        • The FCC established the TRS fund in 1993 to reimburse TRS providers for the costs of providing TRS services — telephone transmission services that provide hearing- or speech-impaired individuals to use a traditional telephone. TRS contribution percentage varies each year. The Federal Communications Commission recently announced that TRS contribution obligations will be extended to intrastate revenue as well.
        • Plivo is required by the FCC to contribute a portion of its interstate and international end-user communications revenues to the TRS fund and the FCC Regulatory Fee. We recoup this expense through the CCRF.
      • Universal Service Fund (USF)
        • The FCC established the USF to subsidize telephone service for low-income households and high-cost areas. The USF contribution applies only to the interstate portion of phone number revenue. The FCC publishes the USF contribution percentage quarterly.
    2. Carrier surcharge fee
      • SMS carrier passthrough fees
        • Some carriers in the United States and Canada charge a per-message fee for message traffic sent and received on their networks. The surcharge varies according to network operator and number type (long code or toll-free). Please contact your sales representative for more information.
    3. State and local taxes and surcharges
      • State and local sales and use taxes
        • Almost every state has some kind of state-level sales and use tax. In general, the sales and use tax is levied on the sale or use of tangible personal property and certain services. These taxes are intended to be passed on to customers.
        • Local governments in many states also levy a sales or use tax. In some cases, the local jurisdiction administers the local sales and use tax. In other cases, the state is in charge of the local sales and use tax.
        • Certain exemptions apply to resale sales and sales to specific entities, such as the federal government, state and local governments, and nonprofit organizations.
        • Plivo collects sales and use taxes as mandated by state and local law.
      • Communications service tax
        • Some state and local jurisdictions impose taxes on communications services in addition to or in lieu of sales or use tax. The communications services tax is intended to be passed on to consumers. The rates for communications services taxes are usually different from the sales and use tax rates and vary by jurisdiction.
        • Certain exemptions apply for sales for resale and sales to certain types of entities, such as the federal government, state and local governments, and nonprofit entities.
        • Plivo collects applicable communications services taxes as required by state and local law.
      • Gross receipts taxes
        • A number of states impose a gross receipts tax on communications service providers. In some states, gross receipts taxes are intended to be passed on to consumers. In other states, the gross receipts tax is the responsibility of the seller, and there is no pass-through to the end user.
        • Exemptions may exist for gross receipts taxes that are intended to be passed on to the customer, based on the type of entity making the purchase, including the federal government, state and local governments, and nonprofit entities.
        • Plivo pays gross receipts taxes and collects them from customers when required (or permitted) by applicable state and local law.
      • Local utility taxes
        • Local utility taxes are imposed by cities and counties in a select number of states. Exemptions may apply for sales for resale and sales to certain types of entities, such as the federal government, state and local governments, and nonprofit entities.
        • Plivo pays local utility taxes and collects them from customers when required (or permitted) by applicable state and local law.
      • Local license taxes
        • Local license taxes are imposed by cities and counties in a limited number of states.
        • Exemptions apply for sales for resale, and sales to certain types of entities, such as the federal government, state and local governments, and nonprofit entities.
        • Plivo pays local license taxes and collects them from customers when required (or permitted) by applicable state and local law