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Communications Tax Impacts of VoIP Services

Voice over Internet Protocol (VoIP) is officially everywhere. From conference rooms to living room couches, it’s become a communication method of choice — both at home and at work. Tens of millions of users rely on an array of VoIP-powered services, from audio conferencing to video chats to digital calls, to meet with remote employees, communicate with clients, provide customer support or simply catch up with friends and family.

The drive toward VoIP services is here to stay. Depending on the type of service, there are often no complicated phone bills to worry about, no long-distance calling fees, and little equipment to invest in. For users, VoIP is a hassle-free, simple solution.

However, the same cannot be said for VoIP providers— particularly when it comes to taxes and regulatory fees. There is an array of variables that can impact tax determination, calculation, and, ultimately, compliance. And as state and federal regulators continue to scrutinize the service, additional regulations further complicate what’s already a complex process.

This white paper serves to help VoIP providers understand what’s at stake from a communications tax perspective and plan accordingly.

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