Understanding Taxes, Surcharges, and Fees

In addition to the monthly service charges billed for Plivo services, surcharges, taxes, fees, and other charges may be applied to your monthly invoice based on the type of service you have and your geographical location, among other factors.  Certain taxes, fees, or surcharges may show up as separate line items on your invoice.  Examples include, but are not limited to the following

Federal Communications Program Fees

Carrier Cost Recovery Fee (CCRF)

A Carrier Cost Recovery Fee (“CCRF”) equal to a fixed % of invoiced charges for voice usage and direct inward dialing numbers (excluding taxes) will apply to all customer invoices.  This is neither government-mandated nor a tax, but is a permissible pass-through charge to recover our costs associated with certain federal regulatory requirements. It includes contributions Plivo is obligated to make to federal funds that support communications services for individuals in high-cost areas, individuals in low-income areas, and disabled individuals.  For more information on programs supported by the CCRF, please see below.

Federal Telecommunications Relay Services (TRS) Fund. The TRS Fund was established by the FCC in 1993 to reimburse TRS providers for the cost of providing interstate TRS services.  TRS services are telephone transmission services that provide hearing or speech challenged individuals with the ability to use a traditional telephone.

Under the FCC’s rules, Plivo must contribute a percentage of its interstate and international end-user communications revenues to the TRS Fund. The contribution percentage varies annually.  The FCC recently announced that TRS contribution obligations will be extended to intrastate revenue as well. As set forth above, Plivo recovers this cost through the CCRF. 

State & Local Taxes and Surcharges

State & Local Sales and Use Taxes

All states, with limited exceptions, impose some form of state-level sales and use tax.  The sales and use tax is generally imposed on the sale or use of the tangible personal property and certain services.  These taxes are intended to be passed on to the end-user/consumer. 

In many states, local jurisdictions also impose a sales or use tax.  In some instances, the local sales and use tax is administered by the local jurisdiction.  In other instances, the state administers the local sales and use tax.

Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.). 

Plivo collects applicable sales and/or use taxes as required by state and/or local law.

Communications Services Tax

Some state and local jurisdictions impose communications specific 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 the end-user/consumer. 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 (e.g., the federal government, state and local governments, non-profit entities, etc.). 

Plivo collects applicable communications services taxes as required by applicable state and/or 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 the end user/consumer.  In other states, the gross receipts tax is the responsibility of the seller, and there is no pass-through to the end user.

Certain 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 (e.g., the federal government, state and local governments, non-profit entities, etc.). 

Plivo pays gross receipts taxes and collects them from customers when required (or permitted) by applicable state and/or local law.

Local Utility Taxes

Local utility taxes are imposed by cities and counties in a select number of states.  Certain exemptions may apply for sales for resale and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.). 

Plivo pays local utility taxes and collects them from customers when required (or permitted) by applicable state and/or local law.

Local License Taxes

Local license taxes are imposed by cities and counties in a limited number of states.

Certain exemptions apply for sales for resale, and sales to certain types of entities (e.g., the federal government, state and local governments, non-profit entities, etc.). 

Plivo pays local license taxes and collects them from customers when required (or permitted) by applicable state and/or local law.

 

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