If your business offers anything remotely close to services that provide communication type needs, then, you might have opened yourself up to telecIf your business offers anything remotely close to services that provide communication-type needs, then you might have opened yourself up to telecom sales tax. Check your website to make sure that you have listed your services correctly.om sales tax. Check your website to make sure that you have listed your services correctly.
Transcript
Do You Need to Be Called a Telecom Company to Be Subject to Telecom Sales Tax?
The answer is no. If the state government thinks that you’re a telecom services provider, that’s all they need to subject you to telecom sales tax.
I’m Mansoor Ansari with Nexus Tax Defense. If your company provides anything of the nature that’s remotely close to click-to-chat services or anything that provides the ability to communicate using technology, then you have opened yourself up to telecom sales tax.
The state government looks at your website to check if you offer any services related to:
- Online calling
- Click-to-call
- Video conferencing
That alone will trigger a telecom sales tax implication.
What Should You Do?
- Ensure your website clearly indicates your services.
- Make sure that you are tracking telecom services the right way.
Frequently Asked Questions
What is telecom sales tax?
Telecom sales tax is a state-imposed tax on services that enable electronic communication, such as voice calls, messaging, or conferencing. It applies even if your business is not formally labeled as a telecom company.
Do I need to be registered as a telecom company to be taxed?
No, you do not. If your services resemble telecom services in function, such as click-to-call or video conferencing, the state may still classify you as a telecom provider for tax purposes.
How can my website trigger telecom tax liability?
State authorities often assess your service offerings through your website. If your site advertises communication tools like chat, calling, or conferencing, you may be deemed liable for telecom sales tax.
What types of services might qualify as telecom?
Services like online calling, click-to-call features, and video conferencing are commonly interpreted by states as telecom-related. Even if your intent isn’t to provide telecom, offering these services may result in tax obligations.
How do I protect my business from unexpected telecom tax?
Review your website and service descriptions carefully. Ensure your offerings are clearly and accurately categorized, and consult a tax professional to verify whether you need to register or collect telecom sales tax.