Tax information and tax exempt status explained

Upon receiving your paperless invoice every month, there will be a select few taxes included with your service. Those taxes may include:

  • Universal Service Fee (USF)
  • Regulatory Recovery Fee (RRF)
  • Enhanced 911 Fee (E911)

What is the Universal Service Fee (USF)?

All customers are billed for the Universal Service Fee. The rate is regulated by the FCC and changes quarterly. 


What is the Regulatory Recovery Fee?

The Regulatory Recovery Fee, or RRF, is intended to offset certain costs incurred by Nextiva in providing your phone service. These costs include supporting services such as state or local universal service, providing disability access, and certain state and local sales, use, and telephone taxes. The Regulatory Recovery Fee is $4.02 per phone line per month. 


What is E911? What is the E911 fee?

E911, or “Enhanced 911? is a fee charged to every customer and has been a service mandated for VoIP providers since 2005. Dialing 911 from your Nextiva phone will enable emergency services to locate your geographic location base on the info provided within your Nextiva control panel. It is crucial that the address and location for each employee’s device are up to date at all times. 


What if I’m tax exempt?

Customers with tax-exempt status are still responsible for service fees, including RRF and USF. If the necessary paperwork is received in our office indicating you are tax-exempt, you will not be required to pay sales or excise tax. Please email [email protected] with any questions.

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