Starting September 9th, 2024, CloudTalk will begin including Universal Service Fund (USF) fee in the billing statements of US-based customers, based on the billing address, to fulfill our obligations under federal law. At the same time we will also start charging a Compliance and Administrative Cost Recovery Fee. Additionally, please be advised that applicable state and local taxes and fees may be applied later in the year to fulfill our obligation under state and local laws.
Compliance Fees and Taxes FAQ
What is the USF fee?
What is the USF fee?
The Universal Service Fund (USF) was established by the Federal Communications Commission (FCC) to ensure that all Americans have access to essential telecommunications services. These fees support critical programs that help bridge the digital divide, ensuring equitable access to telecommunications services across the nation, regardless of geographic location or economic status. More information about the USF can be found on the FCC website.
What is the Compliance and Administrative Cost Recovery Fee?
What is the Compliance and Administrative Cost Recovery Fee?
This fee helps recover a portion of the costs associated with CloudTalk’s compliance with regulatory and tax requirements, as well as intellectual property matters. These costs include, but are not limited to:
Fees for the Telecommunications Relay Services (TRS) Fund, supporting telecommunications services for individuals with hearing or speech disabilities.
Regulatory fees applied by the FCC and other taxes and fees.
Costs related to compliance with regulatory requirements, including accessibility, numbering, privacy, anti-fraud measures, and dialing.
Expenses for tax and regulatory filings.
Surcharges paid to telecommunications service providers.
Charges for filing and maintaining patents, trademarks, and other proprietary rights.
Administrative costs associated with providing CloudTalk’s services.
How does USF affect my CloudTalk invoice?
How does USF affect my CloudTalk invoice?
All US-based customers will see a USF fee and a Compliance and Administrative Cost Recovery Fee itemized at the end of their invoices. These fees are based on the customer’s billing address.
Why are you passing USF fees through to me?
Why are you passing USF fees through to me?
All telecommunications providers must contribute to the USF, and companies can decide how to recover these costs. For CloudTalk, the USF fee appears as a percentage of telecommunications services on your invoice. We strictly comply with FCC regulations, ensuring that we do not collect more than our required contribution to the USF. The FCC sets the 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?
CloudTalk continuously monitors regulatory requirements for taxes and fees across the United States. We may begin collecting state and local taxes and fees in certain states, depending on specific laws and regulations. We are committed to staying compliant with all relevant legal obligations. Customers will be informed when these charges apply, with an expectation to start charging in some states by the end of 2024.
Is CloudTalk pricing tax inclusive?
Is CloudTalk pricing tax inclusive?
No. CloudTalk’s pricing is standardized globally and does not include taxes. Taxes and fees are added to invoices based on applicable jurisdiction laws.
How will my taxes and fees be calculated?
How will my taxes and fees be calculated?
Taxes and fees are calculated based on:
The customer’s billing address (US-based).
Tax regulations in the state and the local jurisdiction applicable to CloudTalk.
The types of products and services consumed.
The customer’s 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 ensures full compliance with tax regulations by continuously monitoring changes in Federal, State, and local tax laws. To ensure accuracy and adherence to these regulations, we consult with external tax professionals and use a specialized tax engine to calculate accurate taxes and fees. This approach ensures compliance and the correct application of taxes as required by law.
When will I be charged for my taxes?
When will I be charged for my taxes?
Monthly Billing Package: USF fees and the Compliance and Administrative Cost Recovery Fee will be applied to invoices issued on or after September 9th, 2024.
Quarterly/Annual Billing: USF taxes and the Compliance and Administrative Cost Recovery Fee will be applied to your next invoice.
State and local taxes and fees will be applied as we reach requirements that are specific for each state or locality. We expect to start charging these taxes and fees in some states by the end of 2024.
CloudTalk is committed to transparency and compliance, ensuring our customers are informed and our practices align with regulatory standards.
Have more questions? Reach out to our Support team. We're always happy to help!