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Avalara AvaTax for Communications (AFC)

Status: Unverified

AvaTax for Communications connects directly to NetSuite to calculate taxes and fees on communications, streaming, IoT, or other services, then applies them to transactions or invoices, automatically.

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Description

Streamlined tax calculation for growing tax complexity

AvaTax for Communications makes it easier to identify and calculate communications taxes, fees, and surcharges for not only traditional telecom, but also new industries that may be responsible for communications tax liability as they expand product scope. This has become especially relevant with the breadth of capabilities that 5G now offers.

Key Benefits

Easily handles the most complex communications tax calculations like tax on tax, tiered taxation, self-taxing rates, and tax inclusive – even when they are bundled.

Includes extensive historical rate and application history, and provides clear output to improve accurate invoicing.

Assigns the taxing jurisdiction by latitude/longitude identifier using Geo for Communications, locating the address with street level precision

Simplifies tax lookups and research and gives access to flexible, customizable reporting options through the Communications Customer Portal.

Provides full control of tax policy and customization, including overrides of built-in rules and rates

Who can it help?

Telecom is now far beyond traditional wireline, wireless, cable, internet, and even VoIP. Technology companies may be responsible for communications tax if they are integrating VoIP into solutions. Media companies may have compliance concerns with content offerings. Countless companies in many industries that are adding sensors for IoT devices also need to understand possible communications tax implications.

Adding complication, communications taxes vary by jurisdiction and how products are bundled. Tax accuracy can be complex and time consuming.

FEATURES

Determining communications tax applicability.

Communications taxes now go far beyond wireline, wireless, cable, internet, even VoIP. Other companies are entering the realm of communications tax with integration of voice features, bundled digital content, and IoT applications. Knowing when and how taxes apply is more important than ever.

Understanding complex nexus.

Unlike sales and use tax, where there are physical facilities, equipment, employees, and products to track, communications tax compliance is tied to invisible radio waves and digital signals. This makes determining sourcing and managing accurate compliance across multiple jurisdictions especially challenging.

Identifying the right tax jurisdiction.

Pinpointing the location of customers to ensure compliance with the appropriate tax jurisdiction is essential but comes with its own complications. Many identification methods can be imprecise or unreliable. Using geocoding can help increase accuracy and reduce risk.

Managing bundling complexities.

Even if you understand the options for unbundling services to lower tax liability, compliance requires constant research, validation, and updating of tax rates across states. Maintaining meticulous usage records is crucial to justify unbundling methods to an auditor.

Keeping up with rate changes.

Technology changes raise new questions about communications taxes and regulations. There are thousands of tax jurisdictions across the country, each one working to keep regulations current with rapidly changing communications technology.