Starting September 9th, 2024, CloudTalk began including Universal Service Fund (USF) fees in the billing statements of our US-based customers (excluding Puerto Rico), based on the billing address, to fulfil our obligations under federal law. Additionally, we introduced a Compliance and Administrative Cost Recovery Fee to cover associated regulatory expenses.
Starting February 17th, 2025, CloudTalk will begin applying all other relevant taxes, fees and charges to customers in the following locations: California, Florida, Texas, New York, Delaware, New Jersey, Nevada and Puerto Rico (including USF fees and Compliance and Administrative Cost Recovery Fee).
Compliance Fees and Taxes FAQ
What is the Universal Service Fund (USF) fee?
What is the Universal Service Fund (USF) fee?
The Federal Communications Commission (FCC) established the Universal Service Fund (USF) to ensure that all Americans have access to essential telecommunications services. By supporting these critical programs, the fees help bridge the digital divide, ensuring that all Americans, regardless of their geographic location or economic status, have access to vital telecommunications services.
You can find more information about the Universal Service Fund at: www.fcc.gov/general/universal-service.
What is the Compliance and Administrative Cost Recovery Fee?
What is the Compliance and Administrative Cost Recovery Fee?
This fee helps CloudTalk recover costs associated with complying with federal, state, country, local and other territorial regulations. It also covers intellectual property and administrative expenses. Specifically, it includes:
Fees assigned by the Federal Communications Commission and other regulatory bodies.
Costs of meeting regulatory requirements (e.g., accessibility, numbering, privacy, anti-fraud).
Expenses for tax filings and compliance with jurisdictional regulations.
Surcharges paid to third-party telecommunications providers.
Costs for managing intellectual property, including patents and trademarks.
How does USF affect my CloudTalk invoice?
How does USF affect my CloudTalk invoice?
All customers operating in the United States based on their billing address will be subject to a USF fee and a Compliance and Administrative Cost Recovery Fee. Both fees will be separately displayed at the ending part of an invoice.
Why are you passing USF fees through to me?
Why are you passing USF fees through to me?
Telecommunications providers are legally required to contribute to the Federal Universal Service Fund (FUSF). Each provider decides whether and how to recover these costs from customers. At CloudTalk, USF fees are calculated as a percentage of your telecommunications services and displayed on your invoice.
CloudTalk adheres strictly to compliance regulations and does not collect more than what it contributes to the USF. The Federal Communications Commission (FCC) determines the applicable USF rate quarterly, and it may change over time.
Will I also be charged for state and local taxes and fees?
Will I also be charged for state and local taxes and fees?
Yes, starting February 17th, 2025, Cloudtalk will begin collecting state, county and local taxes and fees in certain regions of the United States, including:
California
Delaware
Florida
New Jersey
Nevada
New York
Puerto Rico.
Texas
The application of these taxes, charges, and fees depends on the specific laws and regulations in place in each jurisdiction. These include, but are not limited to: sales tax, utility users tax, public utility commission surcharge, access line tax, communications service tax, gross receipts tax, and universal service fund contributions at various levels.
We are committed to full compliance with all applicable regulations, and we will inform customers when these charges apply in their region.
Is CloudTalk pricing tax inclusive?
Is CloudTalk pricing tax inclusive?
No, CloudTalk’s pricing is standard for all customers worldwide and excludes taxes. Taxes and fees are calculated and applied separately based on the laws of the applicable jurisdiction.
How will my taxes and fees be calculated?
How will my taxes and fees be calculated?
We use a combination of:
Your billing address
State, county, and local tax regulations.
The types of products and services you use.
Your tax status in a given jurisdiction.
How does CloudTalk know how much to charge for taxes?
How does CloudTalk know how much to charge for taxes?
CloudTalk is committed to ensuring full compliance with all tax regulations. We continuously monitor changes in federal, state, county and local tax laws to stay up-to-date with the latest requirements. To ensure accuracy and adherence to these regulations, we consult with external tax experts and use a specialized tax engine for precise calculations.. This comprehensive approach helps us maintain compliance and apply the appropriate taxes as required by law.
Have more questions? Reach out to our Support team. We're always happy to help!