Right. There is another fee (I don't recall what it was called) our
state charges that is based on gross receipts. Check with your CPA's,
etc. and see if you're throwing too much money back to the state, but
don't do it without knowing for sure.
On 8/5/2015 11:25 AM, David Sovereen wrote:
What is and is not subject to sales tax differs from state to state.
In Michigan and Wisconsin, the two states in which we operate, all
telephony services delivered to an address in that state are subject
to sales tax—intrastate, interstate, and international. You should
definitely check with your state’s sales tax authority before
employing what Randy is showing. If your state only taxes intrastate
telephony services, then I would agree that Randy’s calculation could
be appropriiate.
I am not a lawyer or accountant either. Just want to caution people
who are thinking about jumping on the calculation below.
Dave
On Aug 5, 2015, at 11:40 AM, Randy Cosby <dco...@infowest.com
<mailto:dco...@infowest.com>> wrote:
Taking this further... If you have to charge/pay state taxes that
are not specified as "Gross reciepts" taxes, you charge/pay on the
intrastate portion: 35.1% x Tax rate. Using Dave's example assuming a
7% state sales tax rate:
$25 VoIP Bundle
35.1% = Intrastate = $8.78 Intrastate
$8.78 * 7% = $0.61 state sales tax due.
Not an accountant or lawyer, but this is what my telecom consultant
has advised us to do.
Oh, and each municipality has a different tax rate here that is added
to the state sales tax base. Joy.
Randy
On 8/5/2015 8:53 AM, Josh Luthman wrote:
Excellent answer!
Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373
On Aug 5, 2015 10:50 AM, "David Sovereen"
<david.sover...@mercury.net <mailto:david.sover...@mercury.net>> wrote:
USF is a tax on interstate phone services.
If you charge for intrastate and interstate services separately,
you can tax the interstate charges at the USF rate. If you do
not, and you can determine the percentage of minutes that are
interstate vs intrastate, you can charge USF on that percentage
of the total charge. There are some reporting requirements if
you are doing this. Otherwise, you can use the Safe Harbor
amount which assumes that 64.9% of the bundles
interstate+intrastate charge is interstate and charge USF on that.
Example:
$25 VoIP Bundle
64.9% = Interstate = $14.40 Interstate
$14.40 x USF (presently 17.1%) = $2.46 USF due
Dave
> On Aug 5, 2015, at 10:12 AM, Simon Westlake
<simon.westl...@digitalgunfire.com> wrote:
>
> I seem to vaguely remember someone once telling me it is
calculated as a percentage of the tax that you assess your
customer, but that doesn't seem right to me. Googling has proved
fruitless. Anyone here collect USF and, if so, how do you
calculate it? Or even if you don't collect USF but know how it
should be done, that'll work too!
