Corporate tax software provider Vertex has launched Vertex Communications Tax Q Series Version 3.00. The solution enables companies to more accurately calculate taxes and fees for communications services in all jurisdictions in the United States (including all US states, territories and possessions) and Canada that impose complex line-based taxes, surcharges or fees.
New features help providers navigate the increasing complexity of communications tax and eliminate taxability errors that could lead to non-compliance.
The intricacy of the telecommunications industry line-based taxation has intensified with the emergence of new services and delivery channels making processing taxes difficult for carriers. While taxation initially was based on per-line charges, innovations like VoIP, wireless and other advances rendered this approach ineffective. Navigating communications tax now requires extensive knowledge and resources to avoid unintentionally subjecting customers to miscalculated fees.
“The telecommunications world is undergoing dramatic changes, ultimately impacting taxation and complicating tax calculations for providers. The increasing demand for telecommunications technology and services, shrinking state revenues to fund programs and the likelihood of new telecom tax legislation all intensify the complexity,” said Robert Marino, senior manager of indirect tax research at Vertex. “Advanced technology that properly calculates taxes and fees allows tax professionals to shift their focus to business outcomes. The latest release of Vertex Communications Tax Q Series calculates tax at a more granular level to help manage line-based taxation requirements.”
Vertex® Communications Tax Q Series® Version 3.00 simplifies line-based taxation process and multi-jurisdictional approach to help providers avoid tax data management and compliance challenges as well as customer relationship risks.
“The Vertex Communications Tax solution is highly customizable and can accept different metrics, converting them to meet a wide-range of jurisdictional requirements,” said Joe Solana, president and COO of Global Strategic Accountants, LLC (GSA), a full-service telecommunications regulatory and compliance firm. “This support is essential for carriers who are struggling with line-based taxation, but would prefer to focus on their business, not the intricacies of tax calculations.”
Based on information passed from a company’s billing system, Vertex Communications Tax identifies taxable locations and calculates applicable taxes, surcharges and fees. Vertex updates communications tax and surcharge data monthly for all levels, including month-per-line levies for the US, and national- and provincial-level taxation for Canada. Vertex Communications Tax also enables customization of data by adding or changing tax rates and rules; adding franchise areas and fees; and setting up bundled services. These taxes may be based on a number of lines, or a number of channels, depending on the approach taken by a jurisdiction.