Taxes are a part of every day life. This article provides you with some helpful information pertaining to how and why tax charges are calculated and applied to your account.
Why Does Ytel Charge Taxes?
In most cases, the services and products provided by Ytel are subject to tax. Ytel utilizes a nationally recognized third party tax company to perform tax assessments to your account. As determined by our third party, Ytel's billing system applies taxes for applicable sales and/or usage in jurisdictions where we are required to collect them. Ytel itself does not determine the amount of tax charged.
When Does Ytel Charge Taxes?
Ytel's billing system assesses applicable taxes at the time services are provided or when there is a billable event (examples include: phone calls, SMS messaging, or license purchase).
What Determines the Tax Amount?
Ytel utilizes a nationally recognized third party to perform the tax assessments and ratings. Rates are adjusted, on average, monthly by the third party as local, city, county, state, and/or federal tax amounts change. Ytel itself does not determine the tax rate charged.
Tax charges are based on several factors:
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The Service Address associated to your account
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The registered address of your company, or your credit card billing address
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Tax regulations of the city, county, state, and/or country which apply to Ytel's products or services
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Products and Services consumed by the customer
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Tax status of the customer (Ie. Non-profits)
Which Address was used to Assess Tax on my Usage?
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Your Service Address will be used to assess taxes, if it can be verified as "tax assessable" by our third party address verification and tax provider.
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If your Service Address is incomplete or is unable to be verified, we will use your billing address (address provided for your credit card payments) to determine taxes.
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If you are unsure - or don't remember - which address you provided, please contact Ytel Customer Support by clicking the live chat icon in the lower right corner of this page. We are happy to verify any information you wish.
How To Update the Address on Your Account
If there becomes a need to update the address on file, an email should sent to Ytel Customer Support with the subject line "Update Business Address on File" and must contain the following:
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Your accountSID (found on your dashboard)
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Your Full Name and Title/Position within the company
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Written request to update the business address on file from X to Y
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Your direct telephone number (in case we have any questions or follow up)
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One (or more) of the following documents (color scans preferred):
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Articles of Incorporation and/or Articles of Organization (preferred)
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IRS EIN/Taxpayer ID forms
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Business License from the city/county
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Audited Financials, provided it includes the primary business address
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Note: Updates are made effective the 1st of the following month.
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Ie. A request received on April 20 will become effective on May 1
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If I Update my Address, will I be Charged for Back Taxes?
No. Address updates become effective the 1st of the month. Per our standard operating procedure, we do not adjust the billing of a closed billing period. We will not regenerate and recalculate a previous months billing.
Does Ytel Pricing on the Website Include Taxes?
No. The Ytel pricing shown is intended to be applicable to all customer across the US and around the world. The pricing shown on our website (and other documents) does not include tax.
My Services were Temporarily Interrupted due to No Available Funding. Are Taxes the Reason?
As taxes are assessed at the time of purchase or consumption, it is entirely possible that the tax amount may have contributed to the available account balance reaching or dropping below $0.00.
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To prevent any interruptions of service, we recommend users to configure Auto-Recharge.
Where do I Find the Amount I was Charged for Tax?
Taxes are shown on the Usage Report. As a user with Account Owner or Billing permissions, login to your account at app.ytel.com, then click on Reporting > Usage. Select the date range and then scroll to find the line labeled "Tax Total". Taxes are displayed on a single line. Note: If you need a hard copy, you can select 'Export'
What is the Universal Service Fee (USF) and is my account charged?
The Universal Service Fund (USF) is a federal fund that ensures the availability of affordable communications to underserved populations. The Federal Communications Commission (FCC) requires companies providing interconnected VoIP and telecommunications services to retail customers - includes businesses and residences - to contribute to the USF. Ytel is one of those companies. You can find more information about the Universal Service Fund here.
Ytel, Inc. is registered with the FCC as an interconnected VoIP provider and is therefore required to contribute a portion of its interstate and international end-user telecommunications revenue to the FCC. All customers based in the United States purchasing Ytel interconnected VoIP or telecommunications services are subject to a USF pass-thru fee. Ytel's third party tax assessment company calculates any applicable USF charges as part of its standard tax assessment and Ytel includes the charges as part of the "Tax Total" shown on your Usage Report.
Note: USF contribution rates vary quarterly. For current rates, please refer to the FCC website.
Isn't Ytel Responsible for Regulatory Obligations like USF?
No. Ytel may have its own obligations for the services that it sells, but it cannot assume the regulatory obligations of its customers for a couple of reasons.
First, Ytel may sell you services which are not regulated, which you might use to create your own voice offering that is regulated. We have no way of knowing exactly how you choose to use and/or employ our various products and services.
Second, even if we sell you services that are subject to regulation, Ytel's compliance with its own regulatory obligations does not relieve you from complying with regulations that apply to any voice services you may elect to provide to your own customers using our products and services.
Although there are a few exceptions, in most cases, retail providers of telecom and/or VoIP services have to meet federal and state regulatory options on their own and cannot rely on their wholesale provider (Ytel) for those obligations. If you are unclear what regulations may apply to you and the services you offer your own customers using our products and services, we encourage you to discuss this topic with your own Counsel.
I am a tax-exempt organization. What do I have to do?
If you are not yet a Ytel customer, please speak with a Ytel Representative by clicking the live chat icon in the lower right corner of this page.
If you are a current Ytel customer, please contact Ytel Customer Support as soon as possible by clicking the live chat icon in the lower right corner of this page or by email.