The system allows for multiple taxes to be defined – taxes are associated with locality based on the tax Level (Federal, State, County, and City). Localities map address information to the billing prefix (USA – NPANXX) – the purpose of localities is to determine the correct tax jurisdiction when applying taxes. It is the administrator’s responsibility to maintain complete and current Locality database.
The system compares the account billing prefix (BTN – Billing Telephone Number) to the “From Number” and the “To Number” of a CDR using special tax matching criteria to determine if a tax is applicable – the matching criteria are defined by administrators per tax. Other parameters such as Customer Type, Exempt Status, State and Local regulations can be used to fine tune the matching of applicable tax jurisdictions.
Rating and Billing > Taxes and Localities > Localities > Add Locality
The locality is the address location associated with a Prefix (for USA BTN = NPANXX) for tax purposes. The prefix must be sufficiently unique to limit the number of cross references in the system. The locality consists of 4 levels of jurisdiction:
- Federation – applicable for countries with federal form of government (e.g. USA, Germany, Russia, etc.)
- State (Country) – a state as part of a federation or an independent country (if the state is a separate country then federation is not applicable)
- County – sub-unit for regional self-government within a state
- City – administrative unit within the county (in the US it may span several counties)
Rating and Billing > Taxes and Localities > Taxes > Add Tax
The Add Tax form contains several fields that define the tax.
Tax Name – you have to enter the name of the Tax.
Currency – select the currency of the tax.
Please note that the currency should be same as the currency of the Subscription plan to which this tax will be assigned.
Tax Level – a drop-down that contains the available options (Federal, State, County, City).
The next section is for the Tax Jurisdiction – the available dropdown selections are limited to the selected Tax Level. For example if Tax Level is County – available selections will be Federation, State, and County while City will be disabled.
Please note that all valid selections are mandatory.
Tax Rate Type – radio control with options: Percentage Rate and Flat Rate.
Tax Rate – enter the correspondent value for the tax rate – percentage or flat rate in chosen currency.
Apply to Customer Type – choose between Company and Individual (cannot be both).
Apply to State Regulated and Apply to City Incorporated – check these boxes if the customer type is company.
Please note that in order for the tax to be applied there should be an exact match between the tax and the account details – otherwise the tax will not be applied.
Tax Matching Criteria – there are 3 options available:
- Selected Rules below – the BTN is matched to the selected check-boxes (“From Telephone Number” or “To Telephone Number”)
- From Number, To Number or Both – the BTN is matched to at least one of the criteria (“From Telephone Number”, “To Telephone Number”, or both)
- Always Apply Tax – if this is selected the tax rule is always executed no matter what the BTN is
Active – check the box to activate the tax
Submitting the form validates and enters the data into the database.
Rating and Billing > Provision Taxes and Localities
Please note that you must always provision after making changes here.
If provisioning is required the system will display a warning “There are changes since last provisioning! Please, run provisioning to submit changes to switch.”
Rating and Billing > Subscription Plans > Plan Name > Taxes > Add Taxes
Once created taxes should be assigned to subscription plans – thus later when an account is set to be taxable, the taxes from the plan which match the account’s settings will be applied.
Select Tax from the drop-down menu – only one tax can be assigned to each plan.
Select the applicable charges and click on the “Submit” button.
Accounts > Account Name > Profile > Tax Jurisdiction
Every account must have strictly defined Tax Jurisdiction configured by: Prefix, Federation, State, City, Customer Type, Tax Exempt flags, etc.
Please note that in order for the tax from the plan to be applied, these settings should be the same as the ones for the tax.
Reports > Revenue Assurance > Taxes
Check all taxes per period for a specific customer, tax level, all taxes per call etc. from here.