Communications tax

Struggling to keep up with industry changes? We’re here to help.

Industry transformation can impact taxes

New technology. M&A activity. Changing legislation. Whether you’re a wireless or cable provider accustomed to telecom tax, you provide streaming or IoT services, or you’re just entering this daunting new world, you need to be certain you’re keeping up with potential tax implications.

Find out how

It's a complex ecosystem – and so are taxes

Count on Avalara to help you understand what you need to know about communications tax now — and get ready for the future.

Voice demand is in flux

Demand for voice service continues to trend to VoIP. It’s likely 5G adoption will only increase consumer appetite for these more data intensive needs. Understanding when voice is communications taxable is very important since it can be taxed at an extremely high rate. Making sure your systems are configured for accurate records, reporting, and billing is critical, particularly since bundle prices change regularly. Understanding best practices to maintain compliance can be challenging; doing so while remaining competitive is even more difficult.


Video is increasingly in demand

Today’s consumers want video and audio content from multiple devices. Video downloads and streaming services are outpacing pay TV subscriptions, with reliance on cable alone becoming a rarity. Cable companies and content providers are launching streaming options, while streaming platforms offer content from multiple providers. Wireless, content, and cable partnerships are common. Bundles change frequently and may often be paired with voice. It’s an incredibly complex tax environment, especially for businesses new to communications tax.

Tech or connectivity may mean tax

If you sell anything that can be described as XaaS, hosting, internet connectivity, hardware with a telecom service, or a device or service that utilizes a sensor, there’s a chance you may be responsible for communications tax. This includes a big slice of 5G-powered IoT. The fastest growing areas with communications tax responsibility are B2B applications in automotive, agriculture, and manufacturing. It’s always best to ask an expert to make sure you’re compliant, especially since this area will likely see future legislative and regulatory changes.

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ViDA spotlight – What is buyer’s consent for e-invoicing?

Ahead of the European Commission’s reveal of its draft “VAT in the Digital Age” (ViDA) Directive, we are setting out some key European e-invoicing concepts and background on the current EU rules which are likely to be impacted by the proposed reforms.


November 2022 Roundup: Tax laws you need to know

As of July 2022, the state of Vermont has expanded a sales tax exemption for manufacturers to include machinery and equipment used on the job. This means that supplies like forklifts and label makers purchased by manufacturers in the Green Mountain State are exempt from sales tax.

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Five Steps to Managing Sales Tax Compliance for Exempt Sellers – Avalara


Holiday Readiness Guide - Avalara

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