VoIP Service: Taxes and Fees
In the crowded field of communications, one crucial aspect that sets Gabbit apart from the competition is upfront and honest pricing. Hidden fees or surprise charges are not only unwelcome, but they are also unwarranted.
Here at Gabbit, we aim to provide clear communication with the industry’s highest reliability. We offer enterprise-class features with affordable pricing. Gabbit’s award-winning customer service means every question is answered. We help our customers understand the taxes and fees associated with VoIP service.
The Federal Communications Commission (FCC) governs VoIP and other telecommunications services in the United States. This includes regulation of fee structure and compliance with different rules across industry and government. Service providers must contribute to the Universal Service Fund, a source for landline and VoIP phone access to underserved areas and low-income Americans, and rural healthcare initiatives and school systems. The FCC also ensures that communication services are accessible to customers with hearing impairments or speaking difficulties. This can be accomplished through caption services, text-to-voice, and relay services, among others.
Understanding the FCC’s role in the taxes and fees associated with your VoIP service is essential. These are legally permitted fees that VoIP providers charge each customer. State, regional, and local governments also charge taxes or fees, which vary by location.
Here are some of the most frequent charges you might see on your bill and what they are for.
Universal Service Fund (USF) Fee
USF fees are variable fees charged per line and per month. They fluctuate four times yearly, coinciding with the required contribution factors calculated by the FCC. Each VoIP provider must file FCC forms annually with service usage and location information. USF fees are used for deploying rural bandwidth and providing service to underprivileged neighborhoods, public schools, libraries, and more.
E911 Fee
E911 stands for enhanced 911. These fees cover the cost associated with FCC’s VoIP regulations regarding the ability to locate any caller that dials 911. This 911 service is a required feature for every VoIP plan. E911 fees ensure that callers can be physically located during an emergency and receive emergency services appropriately. E911 fees vary by state or local government and can go anywhere from 20 cents to two dollars per line. State and local governments can charge a 911 fee, which are sometimes listed separately on your bill and sometimes combined.
Sales Tax
We pay sales tax on everything from gasoline to clothing to fast food. Quality VoIP service is no exception. You will be charged a state and local sales tax, depending on your location. Local taxes can be for county or city government, and sometimes both. VoIP phone service is subject to retail taxing amounts.
Federal Telecommunications Relay Service (TRS) Fund Fee
The TRS is funded to provide individuals with hearing or speech disabilities to make and receive phone calls. The amount also varies by state and local entities. For example, the state of Missouri charges 4 cents per month per line for TRS capabilities.
Regulatory Recovery Fee
This fee is not government mandated. It is charged to customers to recover direct costs the provider incurs for complying with all FCC regulations. It might be listed on a bill as a Regulatory Recovery Fee, FCC Cost Recovery Fee, Regulatory Access Fee, or something similar.
When you receive your bill from Gabbit,
we ensure you understand every part.
we ensure you understand every part.
You won’t find ambiguous wording or unnecessary fees. That makes Gabbit the best choice for VoIP service for businesses of all sizes. You will get incredible features with our Wheels Up program. You will get individualized attention from our exceptional service team. You will get reliable service at an affordable price. So start your VoIP service with Gabbit today. Call us at 855-542-2248 or email us at sales@gabbit.com.