Taxing in TBS

Throughout TBS, there are a variety of fields that could impact taxing. Below is a general overview of these fields.

Account Level

Customer Information:

Commercial – determines if it is a business or residential customer. Business customers may have different taxes
LSO – Local Service Office or NPANXX. This is used in taxing account level charges and within the fallback method (see below) at the product level to determine jurisdiction. (Applies to Avalara Taxing Clients only)
Zipcode – This is used in taxing account level charges and within the fallback method (see below) at the product level to determine jurisdiction.

Bill Setup:

TBS supports the ability to flag a customer exempt from taxes. The Bill Setup tab has the following options:

Exempt Federal - Exempts all federal taxes except Fed USF
Exempt State - Exempts all state taxes
Exempt County - Exempts all county taxes
Exempt City - Exempts all city taxes
Exempt All Taxes - Acts the same as if all of the above are checked but also exempts Fed USF

Note: TBS does have the ability to exempt a customer from specific individual taxes to handle special customer exemptions. This needs to be setup by PTT.

Miscellaneous Charges

CSI Taxing Engine Clients

Avalara Taxing Engine Clients

Transaction Type - this field is set at the inventory (lookup) level for Misc Charges. This transaction type ties to the taxing engine transaction type code. Misc charges need to be setup by PTT.
Service Type - this field is set at the inventory (lookup) level for Misc Charges. This service type ties to the taxing engine service type code. Misc charges need to be setup by PTT.

LSO - Local Service Office or NPANXX. This is used as the primary jurisdiction locator for taxing activity associated with the misc charge..

Other Charges

Avalara Taxing Engine Clients

8xx Storage Fee – This is customizable by the client to tax however they see fit. The default is Interstate Toll Free.

PICC – This is customizable by the client to tax however they see fit. The default is Other PICC Bundled.

Minimum Billing Fees – This is customizable by the client to tax however they see fit. The default is Interstate Toll

CSI Taxing Engine Clients

8xx Storage Fee – This is customizable by the client to tax however they see fit. The default is Interstate Toll Free.

PICC – This is customizable by the client to tax however they see fit. The default is Other PICC Bundled.

Minimum Billing Fees – This is customizable by the client to tax however they see fit. The default is Interstate Toll

Integrated Products

For Integrated Products, TBS implements a “fallback” method for determining jurisdiction:

a. Details/Charges

Product Physical Location zipcode
Product Location zipcode

b. E911 LINES and Usage

Product Physical Location zipcode
Voice Product BTN
ProductID (if Wireless)
Product Location zipcode

c. E911 INVOICE

Product Physical Location zipcode
Product Location zipcode

For Integrated Product Charges, please use the Tax Elements testing tool to simulate taxes for a charge detail.

Traditional Products

Local

BTN - Billing Telephone Number. This is used for taxing e911 in certain states (rolls all e911 charges up to the BTN).
LSO - Local Service Office or NPANXX. This is used as the primary jurisdiction locator for taxing activity associated with the product.
Class of Service - Values include “Business” or “Residential”. This will be used inside the taxing engine when determining taxes for activity associated with the product.
Line Type - The Line Type determines the specific details regarding the product. Different usages (VoIP vs. Local, etc.) may generate different taxes. This line type also is the main tax indicator for USOC charges as well.
Location - The location tied to the product could possibly be used if the fall back method mentioned above is implemented.

Long Distance

BTN, RTN or NPANXX - Depending on the LD product type (LD, 8xx, CC, TC), the field will be labeled either Billing Telephone Number, Ring To Number or NPANXX. For long distance, only the NPANXX of any of these fields is used for determining taxing jurisdiction.
Line Type - The Line Type determines the Tax Type that will be used for usage on this product. Different usages (VoIP vs. Long Distance vs Conference Calling, etc.) may generate different taxes. This line type can be set on the Long Distance screen and the Toll Free screen. Other LD types (Conference Calling, Travel Card) are automatically determined without a field selection.
Location - The location tied to the product could possibly be used if the fallback method mentioned above is implemented.

Dedicated

NPANXX - This is used as the primary jurisdiction locator for taxing dedicated charges.
Location - The location tied to the product could possibly be used if the fallback method mentioned above is implemented.
Monthly Plan - The tax type for dedicated is determined at the Dedicated Plans level. Dedicated charges have the ability for up to two plans to be attached to the dedicated product. These plans can be assigned a tax type of choice when setting up the plan.

Fixed Charges

NPANXX - This is used as the primary jurisdiction locator for taxing fixed charges. This can be customized for each fixed charge.
Tax Type - This dropdown allows the taxing type to be selected on Fixed Charges. These descriptions match the taxing engine transaction | service type combination codes.

USOCs

USOC charges are currently attached to a Local/VoIP product. The Line Type (row 1 in the table below) on the product will determine the taxing engine Transaction Type (Local, VoIP, etc.), while the USOC type (column 1 in the table below) will determine the taxing engine Service Type. The table below outlines the different Product Types (across the top) with each USOC type (down the side) to determine the USOC tax type.

Jurisdiction is determined using the Product specifications outlined above. Please see the taxing engine guidelines (provided by PTT) for more details on these transaction|service combinations. In addition, the Product Class of Service will be used in conjunction with the Product Line Type and the USOC type to determine all taxing.

For USOC Charges, please use the Tax Elements testing tool to simulate taxes for a charge USOC.

		Local Product		Local Bundled Product		VoIP Product
USOC Type	Description	Transaction Type	Service Type	Transaction Type	Service Type	Transaction Type	Service Type
O	Other	03 Other	06 Access Charge	03 Other	06 Access Charge	03 Other	06 Access Charge
E	Equipment
	Equipment Recurring	03 Other	37 Equipment Rental	03 Other	37 Equipment Rental	20 VoIPA	37 Equipment Rental
	Equipment Non Recurring	10 Sales	15 Product	10 Sales	15 Product	10 Sales	15 Product
S	Surcharge	07 Local	20 Local FCC Subscriber Line Fee	07 Local	86 FCC Subscriber Line Fee Bundle	20 VoIPA	06 Access Charge
F	Feature	07 Local	30 Local Feature Charges	07 Local	90 Local Feature Charge Bundle	20 VoIPA	30 Feature Charge
P	Plan	07 Local	05 Local Exchange Services	07 Local	85 Local Exchange Bundle	20 VoIPA	06 Access Charge
L	Line	07 Local	05 Local Exchange Services	07 Local	85 Local Exchange Bundle	20 VoIPA	06 Access Charge
C	Centrex	07 Local	05 Local Exchange Services	07 Local	85 Local Exchange Bundle	20 VoIPA	06 Access Charge
R	Recurring Charge	07 Local	05 Local Exchange Services	07 Local	85 Local Exchange Bundle	20 VoIPA	06 Access Charge
N	Non-Recurring Charge	04 Non-Recurring	08 Install	04 Non-Recurring	08 Install	20 VoIPA	08 Install
W	Wire Maintenance	03 Other	38 Wire Maintenance	03 Other	38 Wire Maintenance	03 Other	38 Wire Maintenance
A	Other Professional Services	03 Other	602 Services - Professional	03 Other	602 Services - Professional	03 Other	602 Services - Professional
V	Voicemail	09 Voice Mail	10 Usage	09 Voice Mail	10 Usage	09 Voice Mail	10 Usage
D	Directory Listing	03 Other	09 Directory Ads	03 Other	09 Directory Ads	03 Other	09 Directory Ads