US Sales and Telecom Tax FAQ in zoom App
I used this article to answer some of the more common questions you might have regarding what types of US sales tax you should expect to see on your bill based on how you subscribe to the products, where you are located, and what kind of obligations and rules apply to the state or local jurisdiction where you reside.
With respect to Zoom’s products, Zoom provides general information regarding sales and telecom taxes and the information provided here is not intended to be construed as tax advice.
Why am I being charged state taxes?
It is mandatory for Zoom to charge and collect state & local taxes from its customers (e.g., sales taxes, gross receipts taxes, and certain telecommunications taxes) in certain states where Zoom has a physical presence (e.g., a local office or employees) or where Zoom maintains a significant market due to the amount of its sales and/or transactions with customers. (In a few states, this may not be required.
If Zoom’s services are not subject to state or local taxes where its customers reside and the customer resides in a state where Zoom’s services operate, Zoom is not required to collect the tax, regardless of Zoom’s physical presence or its sales and transaction volume in that state. However, it’s important to point out that in some local and state jurisdictions, customers, even if Zoom is not required to charge and collect sales tax, may still be required to self-report and remit use tax (on purchases) even if zoom is not required to charge and collect sales tax.
We remit the entire amount that Zoom collects from our customers on behalf of the state taxing authorities, when Zoom collects these state taxes from our customers. The amount of tax collected and the type of tax collected depends on your location, the products/services you purchased and the specific rules applicable to your state and local jurisdiction.
What are these new taxes on my invoice?
In addition to reviewing the products and services we offer, Zoom continues to evaluate the nature and extent of its activities in different jurisdictions around the world.
Zoom will implement tax changes from time to time based on the results of such reviews to ensure compliance with all government regulatory and tax requirements.
Our policy is to notify you promptly and in advance of any charges appearing on your invoices, as soon as we are aware of our future obligations to charge and collect any taxes or telecom-related charges. For more information about US State Sales Taxes and Telecom Taxes, please refer to the overview of US State Sales Taxes and Telecom Taxes.
What are telecom taxes and fees?
There is a possibility for local, state, or municipal governments to impose taxes on goods and services, including telephone services (i.e., telecommunications). Furthermore, some states, local governments, and federal governments may levy regulatory fees on providers of particular communications or telecommunications services, including VoIP services interconnected with each other, such as Zoom Phone.
Why do certain taxes apply only to Zoom Phone?
In most states, tax laws have been enacted specifically for voice services such as interconnected VoIP and the like. It is possible that Zoom Phone may be subject to state and local telecommunication taxes if required or permitted by law since it is also subject to the laws imposing federal, state, and local taxes on telecommunications. In order to provide interconnected VoIP services, Zoom Phone is subject to certain regulatory charges and assessments. We urge you to review the Federal and State Universal Service Fund (USF) FAQs for additional information on these regulatory fees and assessments.
Where can I find tax FAQs specific to OnZoom?
If you would like to extend your knowledge about US tax laws specific to OnZoom, please refer to the FAQ regarding US tax laws specifically related to OnZoom.
What is the best person to contact if I have additional questions?
We encourage you to review the State Sales and Telecom Tax policy, and if you have any additional questions, please feel free to chat with us and mention “Tax”.