What taxes does Nextiva charge for PBX service?

How much will I pay in taxes with Nextiva Trunking?

Nextiva cannot provide an exact amount of taxes billed to your account prior to the pro-forma invoice that is generated and sent to the email address on file.  Items such as line additions, overage charges, and equipment may change the amount of taxes charged to your account each month.

You will see two types of taxes on your Nextiva Trunking invoice: Universal Service Fee (USF) & Regulatory Recovery Fee (RRF). Both taxes fluctuate each quarter and are designated by the FCC. Every phone company has FCC taxes and there is, unfortunately, no way to remove taxes from your Nextiva Trunking recurring subscription fees.


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. An additional pro-rated percentage will be added for any virtual number on your account.


Does Nextiva charge customers the Universal Service Fee (‘USF’)?

All customers are billed for the Universal Service Fee. The rate is regulated by the FCC and changes quarterly. The USF rate for the first quarter of 2018 is 19.5%.


What if I’m tax exempt?

Customers with a tax-exempt status are still responsible for service fees, including the 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.


Do non-profit organizations pay tax?

Non-profit organizations are not required to pay taxes with Nextiva once the proper paperwork has been completed. If you’re a non-profit organization and have service with Nextiva, please send your W-9 to billing@nextiva.com.

Nextiva’s tax ID is 20-8820926.

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