Intermedia Removes the Cloud Voice Roadblock: Taxation

April 12, 2018

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Let’s face it. Cloud Voice has established a bit of a stigma. There is a belief among partners today that voice is difficult to understand, complex to install and support, and best sold by ‘the phone guys’. The truth is that it can be. But with the right partner and the right services, selling Cloud Voice should be both easy and profitable.

So where does this stigma come from then? A great deal of it comes from concerns around support and billing. For good reason though! The support and billing elements of selling voice can certainly eat up your profits if you’re with the wrong partner. But at Intermedia, we do things differently. In addition to letting you sell voice under your own brand our ours with J.D. Power-certified support experts available 24/7, we also handle the taxation!

Removing the barrier of telco taxation

Telco taxation laws are complicated, and this complexity has prohibited all but the biggest resellers from selling voice. But don’t just take my word for it – let me explain. Telco taxation laws require providers to calculate and remit taxes on the services they sell their customers. It involves federal, municipal, local and state taxation, so things can get really complex really fast. For example, what if you’re selling a deal to a corporate office in Chicago but they have homeworkers all over the US. You have to apply part of the tax to Chicago and part to the location of each homeworker. It can be a big mess considering that there are thousands of jurisdictions in the US alone for which taxes need to be calculated.

To remove this time-consuming roadblock, we calculate and bill all telecom taxes and agency fees on the partner’s behalf. To go a level deeper, here’s how it all works:

  1. First, you’d make a partner quote, and select the price of the deal
  2. Then submit the order (with the customer’s address)
  3. We calculate the taxes from there based on the indicated location and the price it was sold at
  4. Then we would send you a bill each month for the wholesale buy price and the taxes calculated at the sell price so you can generate the customer bill
  5. You’d then collect and remit the taxes to Intermedia, and Intermedia would remit those taxes to the appropriate agencies

It’s easy to see how telco taxes can be a real lynchpin in partners getting into the voice business. But, now that you know that Intermedia makes taxation go away and that selling voice can be both easy and profitable, what’s stopping you from getting in the game?

Mark Sher

Mark is the Senior Vice President of Unified Communications, Product and Marketing at Intermedia.

April 12, 2018

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