TM 00101 AFC User Manual Telecom
TM_00101_AFC%20User%20Manual_Telecom
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AvaTax for Communications Telecom User Manual Release: 9.19.1807.1 Document: TM_00101_0055 Date: 06/25/2018 Avalara for Communications - Contact Information Address Avalara, Inc. 512 South Mangum Street, Suite 100 Durham, North Carolina, 27701 Toll Free 800-525-8175 Corporate Web Site http://communications.avalara.com/ Comms Platform Site https://communications.avalara.net Email communicationsupport@avalara.com All trade names referenced herein are either trademarks or registered trademarks of their respective companies. © Avalara, Inc. 2018. CONFIDENTIAL Document Revision History The Revision History log lists the date and description of the most recent revisions or versions of the document. Date Version Description 03/25/2016 0028 04/25/2016 0029 05/25/2016 0030 06/24/2016 0031 07/25/2016 0032 08/25/2016 09/23/2016 0033 0034 10/25/2016 0035 11/23/2016 0036 12/22/2016 0037 01/27/2017 0038 02/24/2017 0039 03/24/2017 0040 Avalara branding updates to reflect the transition to the new company and product names have been incorporated into this document. Please see Appendix H – Avalara Product Names for specific changes in product references and descriptions. Updated with table of Tax Categories in Section 2.4; new tax type 457 in Section 4.3.5 Tax Types. Additional release number and version updates throughout Section 8. New tax type 458 in Section 4.3.5 Tax Types; updated support site screenshots in Section 8.4.1 Download the Monthly update. Reformatted Section 7.8 API Listing table. Additional release number and version updates throughout Section 8. Added new tax types 459 – 462 in Section 4.3.5 Tax Types; 9 new transaction/service pairs in Section 2.1 Transaction and Service Types; Updates in Section 5.5.7 Customsort.exe to command line and arguments; Release number, version and header file updates throughout Section 8. Added new tax type 463 in Section 4.3.5 Tax Types; Release number, version and header file updates throughout Section 8. Release number and version updates on cover and in Section 8.2 Added new tax types, 464 – 468 in Section 4.3.5 Tax Types. Added new transaction/service pair 14/15 in Section 2.2. Added new country, Senegal, in Section 2.3.9. Release number, version and header file updates on the cover and throughout Section 8. Updated descriptions in Section 3.1.4.1 Federal Exempt and Section 3.2 Incorp. Release number, version and header file updates on the cover and throughout Section 8. Added new tax type 469 in Section 4.3.5 Tax Types. All references to ‘reverse’ tax calculations in the AFC engine have been updated and renamed to reflect the current naming convention which is ‘tax inclusive’ calculations. As a result, 16 APIs in Section 7.8.1 API Listings have been updated and renamed. Added safe harbor APIs in Section 7.8.107 EZTaxClearSafeHarborOverride and Section 7.8.108 EZtaxSetSafeHarborTAMOverride. Release number, version and header file updates on the cover and throughout Section 8. Added new tax types 470 and 473-475 in Section 4.3.5 Tax Types. Updates in Section 3.6.2 Determining the Taxing Jurisdiction for Cellular and Section 3.6.3 Determining the Taxing Jurisdiction for VoIP. Added new Section 3.6.4 Determining the Taxing Jurisdiction within Canada. Release number, version and header file updates on the cover and throughout Section 8. Release number, version and header file updates on the cover and throughout Section 8. Also updated copyright year. Removed references to the Locations field throughout document as well as transaction/service pairs 7/23 and 7/88 in Section 2.2 Valid Transaction/Service Pairings. Release number, version and header file updates on the cover and throughout Section 8. Updated table under Section 7.8 API Listings, updated Section 7.8.78 EZTaxPrivateLine and added Section 7.8.79 EZTAXPrivateLineAdj. Release All trade names referenced herein are either trademarks or registered trademarks of their respective companies. © Avalara, Inc. 2018. CONFIDENTIAL Date Version 04/25/2017 0041 05/25/2017 0042 06/27/2017 0043 07/27/2017 0044 08/25/2017 0045 09/25/2017 0046 10/25/2017 0047 11/22/2017 0048 12/21/2017 0049 01/25/2018 0050 02/23/2018 0051 3/27/2018 0052 4/25/2018 0053 Description number, version and header file updates on the cover and throughout Section 8. Added new transaction/service pair 10/655 in Section 2.2 Valid Transaction/Service Pairings. Added new tax type 469 in Section 4.3.5 Tax Types. Updates to Section 4.7 Exclusions, Section 6.3 Federal or State Exclusion and Section 7.8.97 EZtaxSetStateExclusions. Release number, version and header file updates on the cover and throughout Section 8. Release number, version and header file updates on the cover and throughout Section 8. Added Section 3.5.7 Support for India. Added 12 new tax types, 66 and 477 – 487 in Section 4.3.5 Tax Types. All references to ‘Customer Mode’ in the AFC engine have been updated and renamed to reflect the current naming convention which is ‘Invoice Mode.’ As a result, 2 APIs in Section 7.8 API Listings have been updated and renamed. Added two new APIs, Section 7.8.65 EZTaxJTTypeEx and Section 7.8.89 EZTaxPTTypeEx. Release number, version and header file updates on the cover and throughout Section 8. Added note related to timestamp/invoice date passed in Section 6.2.4.1 Invoice Date. Removed deprecated API, EZTaxJTType and added 6 new prorated adjustment APIs in Section 7.8 API Listings. Release number, version and header file updates on the cover and throughout Section 8. Updated tax type 482 (name only). Release number, version and header file updates on the cover and throughout Section 8. Updated name and description for tax type 220, added 2 new tax types 488 and 489 in Section 4.3.5 Tax Types. Added new APIS, EZTaxGetCountry ID and EZTaxGetStateID in Section 7.8 API Listings. Release number, version and header file updates on the cover and throughout Section 8. Added new tax type 490 in Section 4.3.5 Tax Types. Updated references to support site web site address in Section 8.4 Monthly Update Procedures. Updated Avalara contact information (address and support site). Removed Appendix H – Avalara Product Names. Release number, version and header file updates on the cover and throughout Section 8. Added new tax type 491 and 492 in Section 4.3.5 Tax Types. Release number, version and header file updates on the cover and throughout Section 8. Added 6 new countries to the table in Section 2.3.9 Telephony Transaction and Service Types. Release number, version and header file updates on the cover and throughout Section 8. Added new Section 2.2.1 Additional Transaction/Service Pairings Supported in Telecom. Release number, version and header file updates on the cover and throughout Section 8. Updated the definition for surcharge in the table of Section 4.3.2 Returned Tax Information. Release number, version and header file updates on the cover and throughout Section 8. Updated description for transaction/service pair 24/59 and added new transaction/service pair 25/660 in Section 2.2 Valid Transaction/Service Pairings. Added new transaction/service pair 24/491 in Section 2.2.1 Additional Transaction/Service Pairings Supported in Telecom. Added new tax type 493 in Section 4.3.5 Tax Types. Release number, version and header file updates on the cover and throughout Section 8. Added new tax types (494 through 517) in Section 4.3.5 Tax Types. Release number, version and header file updates on the cover and throughout Section 8. All trade names referenced herein are either trademarks or registered trademarks of their respective companies. © Avalara, Inc. 2018. CONFIDENTIAL Date Version Description 5/25/2018 0054 6/25/2018 0055 Updated description in section 2.2.1 Additional Transaction/Service Pairs to indicate U.S. use only. Updates to transaction specifications throughout Section 3. Release number, version and header file updates on the cover and in Section 8. New tax types (518 through 520) in section 4.3.5 Tax Types. Release number, version and header file updates on the cover and throughout Section 8. All trade names referenced herein are either trademarks or registered trademarks of their respective companies. © Avalara, Inc. 2018. CONFIDENTIAL Table of Contents Introduction ....................................................................................................................................... 1 Installation .................................................................................................................................. 1 Getting Started............................................................................................................................ 1 The AFC Manual .......................................................................................................................... 1 Mapping ................................................................................................................................ 1 Transactions .......................................................................................................................... 2 VPN Transaction and Service Types ....................................................................................... 2 Tax Calculations ..................................................................................................................... 2 Utilities .................................................................................................................................. 2 The Advantage of Using Functions ........................................................................................ 2 General Product Information ................................................................................................ 4 Mapping............................................................................................................................................. 6 Transaction and Service Types .................................................................................................... 6 Valid Transaction/Service Pairings .............................................................................................. 6 Additional Transaction/Service Pairings Supported in Telecom .......................................... 29 File transervdescsau.txt ....................................................................................................... 35 Transaction Mapping Guidelines............................................................................................... 36 Long Distance Transaction and Service Types ..................................................................... 36 Wireless Transaction and Service Types .............................................................................. 37 Enhanced Service Transaction and Service Types ............................................................... 38 Internet Transaction and Service Types .............................................................................. 38 Local Service Transaction and Service Types ....................................................................... 39 Sales Transaction and Service Types ................................................................................... 42 Shipping Transaction and Service Types .............................................................................. 43 Natural Gas Transaction and Service Types ......................................................................... 43 Telephony Transaction and Service Types ........................................................................... 43 Cable Television Transaction and Service Types .................................................................. 46 Satellite Television Transaction and Service Types .............................................................. 46 Voice over Internet Protocol (VoIP) Transaction and Service Types .................................... 47 A F C T e l e c o m U s e r M a n u a l |i Copyright 2018 Avalara, Inc. Payphone Transaction and Service Types............................................................................ 50 Software Transaction and Service Types ............................................................................. 51 Timesharing Transaction and Service Types ........................................................................ 51 Satellite Phone Transaction and Service Types.................................................................... 51 VPN Transaction and Service Types ..................................................................................... 51 Tax Categories ........................................................................................................................... 52 Transactions..................................................................................................................................... 52 Customer Information............................................................................................................... 53 Business Class Indicator....................................................................................................... 54 Customer Number (Primary Output Key) ............................................................................ 55 Customer Type .................................................................................................................... 55 Exemption Levels ................................................................................................................. 55 Incorp ........................................................................................................................................ 55 Invoice Number ................................................................................................................... 56 JCode Exemption Levels ...................................................................................................... 56 Lifeline Flag .......................................................................................................................... 57 Service Class Indicator ......................................................................................................... 57 Service Level Number .......................................................................................................... 57 Tax Type Exemptions ........................................................................................................... 57 Optional Fields ..................................................................................................................... 58 Company Information ............................................................................................................... 60 Company Identifier .............................................................................................................. 60 Facilities Based Flag ............................................................................................................. 60 Franchise Flag ...................................................................................................................... 60 Regulated / Unregulated Flag .............................................................................................. 60 Transaction Data ....................................................................................................................... 61 Charge ................................................................................................................................. 61 Date ..................................................................................................................................... 61 Lines .................................................................................................................................... 62 Minutes ............................................................................................................................... 62 Sale Type ............................................................................................................................. 62 A F C T e l e c o m U s e r M a n u a l | ii Copyright 2018 Avalara, Inc. Service Type ........................................................................................................................ 62 Transaction Type ................................................................................................................. 62 Taxing Jurisdiction Identification Information ........................................................................... 63 The JCode Jurisdiction Identification ................................................................................... 63 NPANXX ............................................................................................................................... 66 Zip Codes ............................................................................................................................. 66 Zip Plus 4 ............................................................................................................................. 67 Canadian Postal Codes ........................................................................................................ 67 FIPS Codes ........................................................................................................................... 67 Support for India ................................................................................................................. 69 Jurisdiction Identification Details .............................................................................................. 70 Determining the Taxing Jurisdiction for Wireline ................................................................ 70 Determining the Taxing Jurisdiction for Cellular.................................................................. 74 Determining the Taxing Jurisdiction for VoIP ...................................................................... 74 Determining the Taxing Jurisdiction within Canada ............................................................ 74 AFC Calculations............................................................................................................................... 75 Meeting the Requirements of Specific Tax Issues ..................................................................... 75 Tax Type Exemptions ........................................................................................................... 76 Tax Adjustments .................................................................................................................. 77 Tax Overrides....................................................................................................................... 78 Tax Rate Brackets ................................................................................................................ 84 Surcharges ........................................................................................................................... 85 Prorated Taxes..................................................................................................................... 85 Discount Adjustment ........................................................................................................... 85 Tier at Transactions ............................................................................................................. 88 Tax on Tax Until no Effect .................................................................................................... 89 Historical Tax Rates ............................................................................................................. 89 Taxed Taxes ......................................................................................................................... 89 Tax Logging ............................................................................................................................... 90 Returned Taxes ......................................................................................................................... 90 Taxes Table .......................................................................................................................... 91 A F C T e l e c o m U s e r M a n u a l | iii Copyright 2018 Avalara, Inc. Returned Tax Information ................................................................................................... 91 Returned Tax Information Using Invoice Mode ................................................................... 91 Tax Grouping ....................................................................................................................... 93 Tax Types ............................................................................................................................. 95 Nexus ................................................................................................................................. 116 Exclusions .......................................................................................................................... 116 Utilities........................................................................................................................................... 118 Utility Selection ....................................................................................................................... 119 Reporting Utilities .............................................................................................................. 119 File Management Utilities ................................................................................................. 120 Specifying a Log File at Run Time ............................................................................................ 120 Log.sum File ............................................................................................................................ 121 General Tips When Using Utilities ........................................................................................... 121 AFC Utilities ............................................................................................................................. 122 asciilog.exe ........................................................................................................................ 124 batchsplit.exe .................................................................................................................... 125 commerge.exe................................................................................................................... 126 comptnum.exe .................................................................................................................. 127 comrpt.exe ........................................................................................................................ 129 csf20.exe ........................................................................................................................... 130 customsort.exe .................................................................................................................. 131 ezcomprep.exe .................................................................................................................. 132 ezlog_ns.exe ...................................................................................................................... 134 ezlogcust.exe ..................................................................................................................... 136 ezlogcustios.exe ................................................................................................................ 138 ezlogcustpts.exe ................................................................................................................ 140 ezlogcustptslnl.exe ............................................................................................................ 142 EZTax_20.exe..................................................................................................................... 144 EZTaxappend.exe............................................................................................................... 144 EZTaxappendf.exe ............................................................................................................. 145 log no tax transactions ...................................................................................................... 146 A F C T e l e c o m U s e r M a n u a l | iv Copyright 2018 Avalara, Inc. srtcdf20.exe ....................................................................................................................... 149 srtcdf20p.exe..................................................................................................................... 151 srtcomcust20.exe .............................................................................................................. 153 srtcomma20.exe ................................................................................................................ 154 srtcomma20l.exe ............................................................................................................... 157 srtcomma20ld.exe ............................................................................................................. 160 srtcommadetail.exe ........................................................................................................... 163 srtrev20l.exe...................................................................................................................... 165 upsize_log.exe ................................................................................................................... 170 BATCH FILE PROCESSING................................................................................................................ 171 Batch Processing Description .................................................................................................. 171 AFC CDS Input File Specifications ............................................................................................ 173 Taxing Jurisdiction Identification Information ................................................................... 174 Customer Information ....................................................................................................... 176 Company Information ....................................................................................................... 179 Transaction Information .................................................................................................... 180 Federal or State Exclusion ....................................................................................................... 182 Accumulating the Log.............................................................................................................. 182 EZTax_20 Utility Specification ................................................................................................. 183 Deprecated CDF20 File Structure ............................................................................................ 185 The C/C++ API ................................................................................................................................ 187 Language Interfaces for AFC ................................................................................................... 187 Configuration .......................................................................................................................... 188 Filelocs.txt File ................................................................................................................... 188 Filelocs.sta File................................................................................................................... 189 General Overview of AFC API Integration ............................................................................... 190 Detailed Discussion of AFC API Integration ............................................................................. 191 Tax Adjustments ................................................................................................................ 191 Obtaining Jurisdiction and Address Information From JCodes and PCodes ...................... 191 Obtaining Jurisdiction and Address Information From JCodes and PCodes ...................... 191 Obtaining Tax Information From Transactions .................................................................. 192 A F C T e l e c o m U s e r M a n u a l |v Copyright 2018 Avalara, Inc. Preparing the AFC Application Programmer Interface (API) Interface .................................... 194 AFC API Function Calls ............................................................................................................. 194 Retrieving Taxes ................................................................................................................ 195 Multi-Threading................................................................................................................. 197 Multiple Sessions ............................................................................................................... 198 Session Management ........................................................................................................ 199 Session Pooling .................................................................................................................. 200 Sample Coding ........................................................................................................................ 201 Using EZTaxGetRates to Build an Override ........................................................................ 201 API Listings .............................................................................................................................. 202 EZTaxAdjDebitJEx............................................................................................................... 210 EZTaxAdjDebitNEx ............................................................................................................. 211 EZTaxAdjDebitPEx .............................................................................................................. 212 EZTaxAdjDebitTaxInclusiveJCode (EZTaxAdjDebitRevJCode deprecated).......................... 213 EZTaxAdjDebitTaxInclusiveNPAN (EZTaxAdjDebitRevNPAN deprecated) .......................... 214 EZTaxAdjDebitTaxInclusivePCode (EZTaxAdjDebitRevPCode deprecated) ........................ 215 EZTaxAdjDebitTaxInclusiveZip (EZTaxAdjDebitRevZip deprecated) ................................... 216 EZTaxAdjDebitZEx .............................................................................................................. 218 EZTaxAdjJCodeEx ............................................................................................................... 219 EZTaxAdjNPANEx ............................................................................................................... 220 EZTaxAdjPCodeEx .............................................................................................................. 221 EZTaxAdjProRateJCode (EZTaxAdjProRateJCodeEx deprecated) ....................................... 222 EZTaxAdjProRateNPAN (EZTaxAdjProRateNPANEx deprecated) ....................................... 223 EZTaxAdjProRatePCode (EZTaxAdjProRatePCodeEx deprecated) ..................................... 224 EZTaxAdjProRateThisJCode (EZTaxAdjProRateThisJCodeEx deprecated) .......................... 225 EZTaxAdjProRateThisPCode (EZTaxAdjProRateThisPCodeEx deprecated)........................ 227 EZTaxAdjProRateZip (EZTaxAdjProRateZipEx deprecated) ................................................ 229 EZTaxAdjTaxInclusiveJCode (EZTaxAdjRevJCode deprecated) ........................................... 230 EZTaxAdjTaxInclusiveNPAN (EZTaxAdjRevNPAN deprecated) ........................................... 231 EZTaxAdjTaxInclusivePCode (EZTaxAdjRevPCode deprecated) ......................................... 232 EZTaxAdjTaxInclusiveZip (EZTaxAdjRevZip deprecated) .................................................... 233 A F C T e l e c o m U s e r M a n u a l | vi Copyright 2018 Avalara, Inc. EZTaxAdjTPPEx .................................................................................................................. 235 EZTaxAdjZipEx.................................................................................................................... 237 EZTaxCalcJurisdiction......................................................................................................... 238 EZTaxClearExclusion .......................................................................................................... 239 EZTaxClearTSR ................................................................................................................... 240 EZTaxClose......................................................................................................................... 241 EZTaxCountryToPCode ...................................................................................................... 242 EZTaxDbVersion................................................................................................................. 243 EZTaxDebitJEx .................................................................................................................... 244 EZTaxDebitNEx .................................................................................................................. 245 EZTaxDebitPEx ................................................................................................................... 246 EZTaxDebitTaxInclusiveJCode (EZTaxDebitRevJCode deprecated) .................................... 247 EZTaxDebitTaxInclusiveNPAN (EZTaxDebitRevNPAN deprecated) .................................... 249 EZTaxDebitTaxInclusivePCode (EZTaxDebitRevPCode deprecated) .................................. 250 EZTaxDebitTaxInclusiveZip (EZTaxDebitRevZip deprecated) ............................................. 251 EZTaxDllVersion ................................................................................................................. 253 EZTaxExit ........................................................................................................................... 254 EZTaxExitSessionEx ............................................................................................................ 255 EZTaxFlushToLogEx............................................................................................................ 256 EZTaxFreeRates ................................................................................................................. 257 EZTaxFtoPCodeEx .............................................................................................................. 258 EZTaxGetAddressEx ........................................................................................................... 259 EZTaxGetCustomLog.......................................................................................................... 260 EZTaxGetCountryID ........................................................................................................... 261 EZTaxGetCustomLogCount ................................................................................................ 262 EZTaxGetHandle ................................................................................................................ 263 EZTaxGetJurisdiction ......................................................................................................... 264 EZTaxGetLogName ............................................................................................................ 265 EZTaxGetLogV914.............................................................................................................. 266 EZTaxGetLogV914Count .................................................................................................... 267 EZTaxGetRates................................................................................................................... 268 A F C T e l e c o m U s e r M a n u a l | vii Copyright 2018 Avalara, Inc. EZTaxGetSession................................................................................................................ 269 EZTaxGetStateID ................................................................................................................ 270 EZTaxGetTaxCatV98 .......................................................................................................... 271 EZTaxGetTaxDescription .................................................................................................... 272 EZTaxGetTSR...................................................................................................................... 273 EZTaxGroupResults ............................................................................................................ 274 EZTaxInitDirEx .................................................................................................................... 275 EZTaxInitEx ........................................................................................................................ 276 EZTaxInitExMT ................................................................................................................... 277 EZTaxInitV914 .................................................................................................................... 278 EZTaxInitV98 ...................................................................................................................... 279 EZTaxJCodeEx .................................................................................................................... 280 EZTaxJtoPCodeEx ............................................................................................................... 281 EZTaxJTTypeEx (EZTaxJTType deprecated) ........................................................................ 282 EZTaxJurisdiction ............................................................................................................... 283 EZTaxMaxTaxCount ........................................................................................................... 284 EZTaxNextAddressEx ......................................................................................................... 285 EZTaxNextCustomerEx....................................................................................................... 286 EZTaxNPANEx .................................................................................................................... 287 EZTaxNtoJCodeEx .............................................................................................................. 288 EZTaxNTTypeEx ................................................................................................................. 289 EZTaxOldOvrJCode ............................................................................................................ 290 EZTaxOvrJCodeEx .............................................................................................................. 291 EZTaxOvrNPANEx............................................................................................................... 292 EZTaxOvrPCodeEx.............................................................................................................. 293 EZTaxOvrZipEx ................................................................................................................... 294 EZTaxPCodeEx ................................................................................................................... 295 EZTaxPrivateLine ............................................................................................................... 296 EZTaxPrivateLineAdj .......................................................................................................... 297 EZTaxProRateJCodeEx ....................................................................................................... 298 EZTaxProRateNPANEx........................................................................................................ 299 A F C T e l e c o m U s e r M a n u a l | viii Copyright 2018 Avalara, Inc. EZTaxProRatePCodeEx....................................................................................................... 300 EZTaxProRateThisJCodeEx ................................................................................................. 301 EZTaxProRateThisPCodeEx ................................................................................................ 302 EZTaxProRateZipEx ............................................................................................................ 303 EZTaxPtoFipsEx .................................................................................................................. 304 EZTaxPtoJCodeEx ............................................................................................................... 305 EZTaxPTTypeEx .................................................................................................................. 306 EZTaxRestoreEx ................................................................................................................. 307 EZTaxTaxInclusiveJCode (EZTaxRevJCode deprecated) ..................................................... 308 EZTaxTaxInclusiveNPAN (EZTaxRevNPAN deprecated)...................................................... 309 EZTaxTaxInclusivePCode (EZTaxRevPCode deprecated) .................................................... 310 EZTaxTaxInclusiveZip (EZTaxRevZip deprecated) ............................................................... 311 EZTaxSessionDbVersion ..................................................................................................... 313 EZTaxSetInvoiceModeEx.................................................................................................... 314 EZTaxSetInvoiceModeV98 ................................................................................................. 315 EZTaxSetNexus .................................................................................................................. 316 EZTaxSetStateExclusion ................................................................................................. 317 EZTaxSetStateNexus ...................................................................................................... 318 EZTaxSetWorkingDir ...................................................................................................... 319 EZTaxThisJCodeEx .......................................................................................................... 320 EZTaxThisPCodeEx ......................................................................................................... 321 EZTaxTPPEx.................................................................................................................... 322 EZTaxWriteToLogEx ....................................................................................................... 323 EZTaxWriteToLogV914 .................................................................................................. 324 EZTaxZipEx ..................................................................................................................... 325 EZTaxZtoJCodeEx ........................................................................................................... 326 EZTaxZtoPCodeEx .......................................................................................................... 327 EZTaxClearSafeHarborOverride ..................................................................................... 328 EZTaxSetSafeHarborTAMOverride................................................................................. 329 Appendices A - G ............................................................................................................................ 330 Appendix A EZTaxStruct.h ....................................................................................................... 331 A F C T e l e c o m U s e r M a n u a l | ix Copyright 2018 Avalara, Inc. Appendix B EZTaxDefine.h ...................................................................................................... 345 Appendix C EZTaxProto.h ........................................................................................................ 395 Appendix G Monthly Update Procedure ................................................................................. 400 Download the Monthly Update ......................................................................................... 400 Important Files in Update .................................................................................................. 403 Monthly Maintenance ....................................................................................................... 403 Help Guide .............................................................................................................................. 405 Troubleshooting ................................................................................................................ 405 FAQ’s ................................................................................................................................. 406 A F C T e l e c o m U s e r M a n u a l |x Copyright 2018 Avalara, Inc. Introduction Installation Refer to the AvaTax for Communications (AFC) Installation Manual for complete instructions regarding the installation of AFC on your specific platform. Getting Started There are several AFC integration methods available, each allowing for its use based on the client’s needs. • AFC SaaS Standard: This method is provided for lower transaction-count customers, allowing for the use of AFC to obtain tax calculations without having to maintain the program on their systems. • On-Site Options: AFC's API interface: provides the user complete control over access to tax calculations and the data returned, along with the flexibility supported by the report utilities. • AFC SaaS Pro: AFC SaaS Pro is an XML web service used to calculate taxes. Applications send a single transaction to the AFC SaaS web service over the Internet. The taxes are calculated and immediately returned to the client application. Users have the capability of sending and receiving transactions 24 hours a day, 7 days a week. This service is ideal for adding the ability to tax purchases made from online stores and AFC SaaS Pro customers are provided with reports for tax compliance filing. The AFC Manual The AFC Manual has been configured to provide an easy and logical progression for learning AFC and its features, as well as a quick reference (fully linked on the electronic version of the manual). From the initial step of mapping to the final creation of reports based on the processed information, the conceptual simplicity of AFC is fully explained. Mapping Prior to performing tax calculations, client transactions and services must be matched, or “mapped,” to the Valid Transaction and Service Pairings defined in AFC. Refer to Section 2 Mapping for the full explanation of how this is accomplished. A F C T e l e c o m U s e r M a n u a l | 1 of 401 Copyright 2018 Avalara, Inc. Transactions Once the transactions and services have been mapped, transaction records can be passed to AFC. Section 3 Transactions explains what AFC expects for each part (or field) contained in a transaction record and provides the definitions and reasons for selecting one of the valid options to use. VPN Transaction and Service Types Refer to Table 2-14 for a list of combined transaction and service types that are used with VPN transaction types. Tax Calculations The AFC Engine accepts the transaction record(s) and performs the tax calculations based upon the information within the record. Utilities Once the taxation has been performed, Utilities can be used to provide the tax information in selected formats that meet specific requirements and perform file management functions. The many options available are detailed in the Utilities section of this document The Advantage of Using Functions Section 7 provides specific details of the expanded capabilities provided to users that integrate AFC to the billing system using functions. Refer to the figure shown below. The billing system passes information to AFC, as calls are being rated for billing. AFC calculates all required taxes and returns the tax information to the billing system per transaction. In addition, AFC stores all tax data generated in its databases and provides reports that facilitate tax filing and provide insight to the rating, billing and taxing processes. A F C T e l e c o m U s e r M a n u a l | 2 of 401 Copyright 2018 Avalara, Inc. Figure 1-1 AFC Operation Diagram Adjustment information is returned to the billing system and is utilized to update tax data for report generation and compliance filing. AFC also provides facilities that allow users to insert tax overrides and exempt a transaction from taxes at federal, state, county and local authority levels. AFC also provides the capability to limit exemptions to a specific jurisdiction and to exempt specific taxes. Using the AFC API is the most efficient method available for interfacing with the AFC system. Due to the superior performance of AFC, there is very little performance difference between a system running without taxation and one running with taxation generation by AFC. A F C T e l e c o m U s e r M a n u a l | 3 of 401 Copyright 2018 Avalara, Inc. General Product Information Telecom Types Business Classifications – Allows for specification of business as CLEC or ILEC. Service Classifications – Allows for specification of business as Primary Long Distance or Local Primary. Franchise – Allows for the indication that company provides services sold pursuant to a franchise agreement between the carrier and jurisdiction. Facilities – Allows for specification of the carrier delivering the service as facilities based. Customer Attributes Company Identifier – Allows the AFC user to indicate a specific company that may be included in their customer record and outputted to the tax log to identify company tax log records. Lifeline – Allows for a customer to be designated as a Lifeline participant. Enhanced Flexibility for Users User reporting and organizational activities have been enhanced with the addition of user defined fields. This empowers the user to include additional user specific information within transaction records, thereby enhancing reports and data files once processed by the AFC Engine. Note that the Batch Processing utility takes full advantage of the additional transaction fields. Enhanced Capabilities for Processing Specialized Taxes AFC maintains tax rate histories and applies them according to the transaction date. This allows for tax calculations to process transactions that require dated tax information. Billable Flag – Allows for the identification of a compliance only tax or fee that is used for filing and not passed on to the user. It is noted as a non-billable item in the tax log. Compliance Flag – Allows for the identification of a tax or fee that is a tax compliant item and that the tax or fee should be sent to the log. The reporting utilities can identify and generate compliance and billing reports. All existing taxes currently in AFC are compliance taxes or fees. A charge with the compliance set to false in logic is billable but the charge would not be place into the log for compliance or reported in compliance reports. This flag provides EZdata users with the ability to pass non-tax charges to the customer through AFC. A F C T e l e c o m U s e r M a n u a l | 4 of 401 Copyright 2018 Avalara, Inc. Rate at Final - Allows for a specialized application of tax brackets. Each bracket specifies the tax rate for the “Total Tax” range that it spans. The culmination of all of the brackets results in a tax rate “look-up” table for total transaction amounts. Tier At Transaction - This logic flag indicates that tax will be calculated using graduated tax brackets on a transaction basis instead of a customer invoice basis. Tax On Tax Until No Effect - Configuration settings in EZTax.cfg determine one of two methods to calculate Tax on Tax. If the configuration setting is left unchanged, AFC will perform a single iteration of the tax on tax calculation. Additional Functions to Support New Capabilities An expanded library of functions has been created, the greatest impact of which falls on the Adjustment and Pro-Rated activities. Adjustment Functions – Additional functions are available to allow for adjustments of debit and pro-rated transactions. Pro-Rated Allowable Functions – Allow for a pro-rated percentage to be used to calculate the taxable amount on rate tax and calculate the percentage of the line and fixed amounts. AFC identifies taxes that are not allowed to be assessed on a percentage basis internally, and the entire tax amount is calculated. The Get Rates function has been added to retrieve all possible taxes when given a location by PCode. The structure of the returned tax information is compatible with the new override structure, so that specific changes can be applied to the existing tax data to create override entries. New Version Tracking A version number has been embedded into the AFC database to ensure database compatibility between the AFC software and the AFC database. The AFC Engine compares version numbers on session initialization. If incompatible version numbers are detected, a message is written to the status file and AFC system will not return a valid session handle. Additional Tax Types AFC now supports over 450 Tax Types to allow for highly specific tax type designation. Increased Accuracy The Tax Amount and Time calculations have been modified to increase accuracy and further reduce rounding errors. A F C T e l e c o m U s e r M a n u a l | 5 of 401 Copyright 2018 Avalara, Inc. Mapping The AFC software provides an extensive selection of Transaction and Service Types to meet your taxation requirements with a single taxation package. The correct matching, or “mapping,” of your company products and services to the Valid Transaction and Service Pairings defined in AFC is an essential process that must be completed accurately for taxation to be calculated and applied properly to all transactions. If an incorrect pairing is passed to the AFC engine then no tax is usually returned. Avalara support is available to assist should any questions arise in determining the correct Transaction and Service pair to use. Transaction and Service Types AFC stipulates a unique pair of numbers for each Transaction and Service Type. The first number defines the Transaction Type and the second number defines the Service Type. Transaction Types and Service Types are combined (or “paired”) to uniquely describe a Valid Transaction / Service Pair for a transaction. Valid Transaction/Service Pairings Table 2-1 provides a complete listing of identifiers used to define valid Transaction / Service Pairings. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type NAME 0 0 No Tax/No Tax 1 1 Interstate/Toll 1 2 Interstate/Toll-Free 1 3 Interstate/WATS 1 4 Interstate/Private Line DESCRIPTION Usage of this mapping combination will ensure that no federal, state or local taxes are returned. Interstate toll calls, MRC (monthly recurring charges), and other related service-type charges and features. (Call originates and terminates in different states.) Interstate and international toll-free calls, MRCs, and other related service type charges and features. (Same as Interstate Toll call above, however the owner of the toll-free number pays all the applicable long distance charges.) Interstate and international WATS service charge, MRC, and other related service type charges and features. (Same as Interstate Toll call above, but often sold as a set-pricing scheme for a designated long distance calling area.) Interstate or international private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location. No switching or access to other third party lines. The private line will cross over a state or country border.) A F C T e l e c o m U s e r M a n u a l | 6 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 1 12 1 14 1 16 1 27 1 54 1 562 1 635 2 1 2 2 2 3 2 4 2 5 2 14 NAME DESCRIPTION Interstate/International International calls that originate in the US, terminate Toll outside the US, and are billed to a US address. Late charge imposed on customers of interstate or Interstate/Late Charge international LD services. Interstate or international 900 service charge, MRC and other related service type charges and features. (Same Interstate/900 as Interstate Toll call above, but the caller of the 900 number pays for the applicable long distance charges.) Interstate or international data service charge, MRC, and other related service type charges and features. (This combination is appropriate for transmissions that carry data exclusively. Use Private Line if any component is Interstate/Data voice. This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services. This is not for Internet Access provided over DSL lines.) Interstate/Directory Charges for Directory Assistance calls that cross state Assistance boundaries. Local loop charge that is not part of a local exchange Interstate/Local Loop service and is sold in conjunction with an interstate private line. Interstate/ Toll Free Monthly recurring charge for access to a toll free Number number. This represents the interstate portion. Intrastate toll call, MRCs, and other related service types Intrastate/Toll charges and features. (Call originates and terminates within the same state.) Intrastate toll-free calls, MRC, and other related service type charges and features. (Same as Intrastate Toll call Intrastate/Toll-Free above, however the owner of the toll-free number pays all the applicable long distance charges.) Intrastate WATS service charge, MRC, and other related service type charges and features. (Same as Intrastate Intrastate/WATS Toll call above, but often sold as a set-pricing scheme for a designated long distance calling area.) Intrastate private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the Intrastate/Private Line customer's premises and connects only to a designated termination location. No switching or access to other third party lines. The private line will be entirely within a state and not cross a state border.) The basic flat rate for intrastate local exchange service. This transaction/service types will include any applicable Intrastate/Local Exchange long distance access line charges, or other local servicerelated fees and charges. (Does not include local feature charges.) Late charge imposed on customers of intrastate LD Intrastate/Late Charge services. A F C T e l e c o m U s e r M a n u a l | 7 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type NAME 2 16 Intrastate/900 2 27 Intrastate/Data 2 54 Intrastate/Directory Assistance 2 630 Intrastate/Private Line (10% Rule) 2 631 Intrastate/Data (10% Rule) 2 635 Intrastate/Toll Free Number Other/Access Charge 3 6 Other/Local Loop 3 9 Other/Directory Ads 3 14 Other/Late Charge DESCRIPTION Intrastate 900 service charge, MRC and other related service type charges and features. (Same as Intrastate Toll call above, but the caller of the 900 number pays for the applicable long distance charges.) Intrastate data service charge, MRC, and other related service type charges and features. (This combination is appropriate for transmissions that carry data exclusively. Use Private Line if any component is voice. This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services. This is not for Internet Access provided over DSL lines.) Charges for Directory Assistance calls that are contained wholly in one state. Intrastate private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location. The private line will be entirely within a state and not cross a state border.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes. Intrastate data service charge, MRC, and other related service type charges and features. (This combination is appropriate for transmissions that carry data exclusively. Use Private Line if any component is voice. This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services. This is not for Internet Access provided over DSL lines.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes. Monthly recurring charge for access to a toll free number. This represents the intrastate portion. Access for a service that is not already defined as a transaction/service type. Catch-all local access charge category. Local loop charge that is not part of a local exchange service and does not fall within any other transaction/service type category. (Local exchange providers who are billing local loop charges for local exchange services should map this charge under transaction/service type 7-5 [Local Local Exchange].) Directory advertisement charges. Category for late charges that were originally taxed using one of the “Other” (3) transaction categories. A F C T e l e c o m U s e r M a n u a l | 8 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 3 34 3 37 3 38 3 46 3 47 3 57 3 96 3 97 3 570 3 575 3 576 3 589 3 593 3 594 NAME DESCRIPTION Charges for connecting conference participants utilizing a conferencing bridge. This transaction should be used Other/Conference Bridge when transactions are interstate or cannot be separated from intrastate services. Other/Equipment Rental Charges for Rental of Equipment. Monthly recurring charges for inside wiring maintenance Other/Wire Maintenance between customer phone and the local carrier's demarc Plan box. This combination should be used for the charge assessed Other/PICC by either a LEC or LD company for maintaining record of an end user’s choice of LD carrier. This combination should be used for the charge assessed by a LEC for maintaining record that end users choose not to declare an LD carrier. This combination will only Other/No Pick PICC return the necessary State Taxes. It is important to distinguish this transaction from 3/46 because No Pick PICC’s are not subject to FUSF. Charge for the manipulation of user’s data. This is not to Other/Data Processing be confused with the transmission of data. This combination should be used for the charge assessed by a LEC for maintaining record that end users choose not to declare an LD carrier. This combination will only return the necessary State Taxes. It is important to Other/No Pick PICC Bundle distinguish this transaction from 3/97 because No Pick PICC’s are not subject to FUSF. This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. This combination should be used for the charge assessed by either a LEC or LD company for maintaining record of an end users choice of LD carrier. It will return the Other/PICC Bundle proper Federal taxes, such as USF, in addition to necessary State Taxes, such as Sales Tax. This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET Other/Directory Listing Directory listing charges. Charges for connecting intrastate conference participants Other/Conference Bridge- utilizing a conferencing bridge. This transaction should be used when intrastate services do not include dial in or Intrastate dial out services. Per-minute and per-participant charges for dial-in service Other/Conference Bridge- provided in conjunction with connecting conference participants utilizing a conferencing bridge when all Intrastate w Dial In participants are located within one state. Other/Conference Bridge- Charges for connecting interstate conference participants Interstate utilizing a conferencing bridge. Other/Info Svcs-Private A service providing information to private customers by Physical Trans physical means such as paper. Other/Info Svcs-Private A service providing information to private customers by Electronic Trans electronic means. A F C T e l e c o m U s e r M a n u a l | 9 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 3 597 3 598 3 599 3 600 3 602 3 603 3 608 3 614 3 632 3 638 3 639 3 644 4 7 4 8 4 11 4 14 NAME DESCRIPTION A service providing the passive receipt of information Other/Info Svcs-Publicother than financial account or securities trading data to Electronic Trans the public by electronic means. Other/Info Svcs-Public A service providing information to the public by physical Physical Trans means such as paper. Other/E-mail Hosting A service providing e-mail hosting to customers. Service Other/Real Property Rental Rental of Real Property Space Other/ServicesA service rendered for a fee in one of the learned Professional professions. Access to a computer through a remote terminal that Other/Online services allows retrieval of stored data created by the service provider. Per-minute and per-participant charges for dial-in service Other/Conference Bridge provided in conjunction with connecting conference participants utilizing a conferencing bridge when all Interstate w Dial-In participants are located in different states. Other/Telecom Equipment Charge for renting telecommunications equipment. Rental An optional contract to cover repairs including parts and labor. This type of service contract is sold at the same Other/Service Contracts time the product being covered by the service contract is sold. Other/Security Monitoring A fee paid for the service of monitoring the security of Services real or tangible personal property. Other/Streaming Internet The purchase of video via the internet. The purchaser Video does not retain possession of the video. A service providing the passive receipt of financial Other/Info Svcs-Pub Elec account or securities trading data on to the public by Trans (Fin & Securities) electronic means. One-time charge for the actual provisioning of manual service to a phone system or account. All manual repair Non-Recurring/Service services should fall into this category. (This designation should not be used for administrative fees or service change fees.) Non-Recurring/Install One-time charge for the installation, administration, modification, or termination of a telecommunication service account or service. (Use for install fee, change order fees, add-service fees, and termination account/service fees. Not for repair/service fees.) One-time charge for the activation of a local exchange service account. (Local only.) Category for late charges that were originally taxed using Non-Recurring/Late Charge one of the “Non-Recurring” (4) transaction categories. Non-Recurring/Activation A F C T e l e c o m U s e r M a n u a l | 10 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 5 6 5 7 5 8 5 10 5 11 5 29 5 58 6 6 6 10 6 11 6 13 7 4 NAME DESCRIPTION Charges for internet access services, MRC, and other related service type charges and features. (Both perInternet/Access Charge minute and flat fee amounts for internet access services will be mapped to this transaction/service type.) One-time charge for manual, physical service to an internet system or account, such as a truck roll to the Internet/Service customer premise. All manual repair services should fall into this category. This designation should not be used for administrative fees or service change fees. One-time charge for the installation, administration, modification, or termination of an internet service Internet/Install account or service. This should be used for install fee, change order fees, add-service fees, and termination account/service fees, but not for repair/service fees.) Used for internet access sales that are not a monthly Internet/Usage recurring charge, but are sold to customers on a per usage basis. One-time charge for the activation of an internet service Internet/Activation account. It is mutually exclusive of the other internet charges. Charges for internet web hosting, MRC, and other related Internet/Web Hosting service type charges and features. A telecommunications line purchased, used, or sold by a Internet/Access Line provider of Internet access to provide Internet access as long as the charges are distinguishable from other uses. Basic monthly flat-rate charges for paging services. Paging/Access Charge (Mutually exclusive of the other paging charges.) Paging charges for usage. Charges are in addition to any Paging/Usage services covered in the monthly access charge. (Mutually exclusive of the other paging charges.) One-time charges for activating a paging account. Paging/Activation (Mutually exclusive of the other paging charges.) Charges for paging equipment repair and service. Paging/Equipment Repair (Mutually exclusive of the other paging charges.) Local private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location. No switching or access to other third party Local/Private Line lines. The private line will originate and terminate entirely within a single city. If the private line is charged on a basis of time and distance per call or used to make tolls calls outside of the local calling areas for a set periodic/flat fee charge, then the private line should be mapped as a toll, toll free, or WATS type of service.) A F C T e l e c o m U s e r M a n u a l | 11 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 7 5 7 14 7 20 7 21 7 24 7 27 7 30 7 40 NAME DESCRIPTION Charges for monthly recurring charge, usage, local loop, local flat rates and other similar charges for local telecom Local/Local Exchange service. This will also include dial tone and any applicable long distance access line charges, or other local serviceServices related fees and charges. (Does not include local feature charges. See below) Category for late charges that were originally taxed using Local/Late Charge one of the Local (7) transaction categories. Charge for recovering the cost of connecting the customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or Local/FCC Subscriber Line the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line Fee charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service. Fixed, monthly charge through which local telephone Local/Number Portability companies may recover some of the costs associated with providing local number portability service. This is Recovery not the LNP Administrative Fee. Designates the number of lines a local service customer is using. (Taxable amount is irrelevant for this Local/Lines transaction/service type. Tax is calculated based on the number of lines designated in the lines field.) Designates the number of PBX trunks a local service customer is using. (Taxable amount is irrelevant for this Local/PBX/Trunk transaction/service type. Tax is calculated based on the number of lines designated in the lines field. Used in conjunction with 7/41 and 7/566.) Local data service charge, MRC, and other related service type charges and features. (This combination is appropriate for transmissions that carry data exclusively. Use Private Line if any component is voice. This is a Local/Data recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services. This is not for Internet Access provided over DSL lines.) Charges and fee for additional feature charges of local Local/Local Feature exchange services. (Includes services such as call waiting, Charges caller ID, call blocking, call forwarding, etc.) Designates the number of Centrex / Direct Inward Dialing extensions a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax Local/Centrex / DID is calculated based on the number of extensions Extension designated in the lines field. Used in conjunction with 7/42 and 7/587.) A F C T e l e c o m U s e r M a n u a l | 12 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 7 41 7 42 7 43 7 45 7 84 7 85 7 86 NAME DESCRIPTION Designates the number of PBX extensions a local service customer is using. (Taxable amount is irrelevant for this Local/PBX Extension transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 7/24 and 7/566.) Designates the number of Centrex trunks a local service customer is using. (Taxable amount is irrelevant for this Local/Centrex Trunk transaction/service type. Tax is calculated based on the number of trunks designated in the lines field. Used in conjunction with 7/40 and 7/587.) Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. Local/Invoice Taxable amount or numbers of lines are irrelevant for this transaction/service type.) Designates the number of High Capacity Trunks a customer is using. High Capacity Trunks are usually defined as T1 or greater. (Taxable amount is irrelevant Local/High Capacity Trunk for this transaction/service type. Tax is calculated based on the number of High Capacity trunks designated in the lines field. Used in conjuction with 7/580 and 7/582.) Category for late charges that were originally taxed using one of the “Local” (7) transaction categories associated Local/Late Charge Bundle with bundled transactions. This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Charges for monthly recurring charge, usage, local loop, local flat rates and other similar charges for local telecom service. This will also include dial tone and any applicable Local/Local Exchange long distance access line charges, or other local servicerelated fees and charges. (Does not include local feature Bundle charges. See below). This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Charge for recovering the cost of connecting the customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line Local/FCC Subscriber Line charges. This charge is not a tax or a governmental Fee Bundle assessment, but an authorized charge for the recovery of cost for providing local exchange service. This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET). A F C T e l e c o m U s e r M a n u a l | 13 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 7 87 7 89 7 90 7 91 7 92 7 93 NAME DESCRIPTION Fixed, monthly charge through which local telephone companies may recover some of the costs associated Local/Number Portability with providing local number portability service. This is not the LNP Administrative Fee. This service type should Recovery Bundle be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of lines a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the Local/Lines Bundle number of lines designated in the lines field.). This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of PBX trunks a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the Local/PBX Trunk Bundle number of lines designated in the lines field. Used in conjunction with 7/92 and 7/567.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Charges and fee for additional feature charges of local exchange services. (Includes services such as call waiting, Local/Local Feature Charge caller ID, call blocking, call forwarding, etc.) This service Bundle type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of Centrex / Direct Inward Dialing extensions a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax Local/Centrex Extension is calculated based on the number of extensions designated in the lines field. Used in conjunction with Bundle 7/93 and 7/588.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of PBX extensions a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the Local/PBX Extension number of extensions designated in the lines field. Used Bundle in conjunction with 7/89 and 7/567.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of Centrex trunks a local service customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the Local/Centrex Trunk number of trunks designated in the lines field. Used in Bundle conjunction with 7/91 and 7/588.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. A F C T e l e c o m U s e r M a n u a l | 14 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 7 94 7 95 7 566 NAME DESCRIPTION Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. Taxable amount or numbers of lines are irrelevant for this Local/Invoice Bundle transaction/service type.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of High Capacity Trunks a customer is using. High Capacity Trunks are usually Local/High Capacity Trunk defined as T1 or greater. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based Bundle on the number of High Capacity trunks designated in the lines field. Used in conjuction with 7/581 and 7/583.) Local/PBX Outbound Channel Designates the number of voice grade communications channels leaving a subscriber's premises through a PBX connecting the subscriber's premises to the public switched network. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 7/24 and 7/41.) Designates the number of voice grade communications channels leaving a subscriber's premises through a PBX connecting the subscriber's premises to the public switched network. 7 567 Local/PBX Outbound Channel Bundle 7 580 Local/High Capacity Extension 7 581 Local/High Capacity Extension Bundle (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 7/89 and 7/92.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of extensions a local customer is using on a High Capacity Trunk. High Capacity Trunks are usually defined as T1 or greater. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of High Capacity Extensions designated in the lines field. Used in Conjunction with 7/45 and 7/582.) Designates the number of extensions a local service customer is using on a High Capacity Trunk. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 7/95 and 7/583.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. A F C T e l e c o m U s e r M a n u a l | 15 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 7 582 7 583 7 587 7 588 7 612 7 613 NAME DESCRIPTION Designates the number of outbound channels a local service customer is using on a High Capacity Trunk. (Taxable amount is irrelevant for this transaction/service Local/High Capacity type. Tax is calculated based on the number of outbound Outbound Channel channels designated in the lines field. Used in conjunction with 7/45 and 7/580.) Designates the number of outbound channels a local service customer is using on a High Capacity Trunk. (Taxable amount is irrelevant for this transaction/service Local/High Capacity type. Tax is calculated based on the number of Outbound Channel Bundle extensions designated in the lines field. Used in conjunction with 7/95 and 7/581.) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Designates the number of outbound channels a local service customer is using on a Centrex Trunk. (Taxable Local/Centrex Outbound amount is irrelevant for this transaction/service type. Tax is calculated based on the number of outbound channels Channel designated in the lines field. Used in conjunction with 7/40 and 7/42) Designates the number of outbound channels a local service customer is using on a Centrex Trunk. (Taxable amount is irrelevant for this transaction/service type. Tax Local/Centrex Outbound is calculated based on the number of extensions designated in the lines field. Used in conjunction with Channel Bundle 7/91 and 7/93) This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return FET. Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or Local/FCC Subscriber Line the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line Fee Multi Line charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange for multi-line service. Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line Local/FCC Subscriber Line charges. This charge is not a tax or a governmental Fee Multi Line Bundle assessment, but an authorized charge for the recovery of cost for providing local exchange multi-line service. This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET). A F C T e l e c o m U s e r M a n u a l | 16 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type NAME 7 623 Local/Centrex Invoice 7 625 Local/Customer Premise Equip Rental 7 641 Local/FCC Subscriber Line Charge Centrex 7 642 Local/FCC Subscriber Line Charge Centrex Bundle 8 10 Fax/Usage 9 6 Voice Mail/Access Charge 9 10 Voice Mail/Usage 9 11 Voice Mail/Activation 9 14 Voice Mail/Late Charge 10 10 15 31 Sales/Product Sales/Use 10 32 Sales/Debit 10 63 Sales/Restocking Fee – Rental DESCRIPTION Mapping category for transactions on a per invoice basis. (Tax is based on per invoice per account per billing cycle. Taxable amount or numbers of lines are irrelevant for this transaction/service type.) Rental of equipment located at a subscriber's premises that enable customers to access local communications services as defined by the IRS as it will return FET. Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service. This transaction is intended only for taxation of the Subscriber Line Fee (not the actual fees for Centrex services or the line counts on Centrex systems). Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge. The FCC has established per-line caps for primary and secondary line charges. This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service. This transaction is intended only for taxation of the Subscriber Line Fee (not the actual fees for Centrex services or the line counts on Centrex systems). This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET). Charges for fax services, MRCs, or other related servicetype fee and charges. Basic monthly flat-rate charges for voice mail services. Voice mail charges for usage. Charges are in addition to any services provided in the monthly access charge. One-time charge for activating a voice mail account. Category for late charges that were originally taxed using one of the Voice Mail (9) transaction categories.. General sales tax rates. General use tax rates. Calculation of sales tax on a debit charge (prepaid charge) that is determined by state law to be a point of sale transaction. Fee charged to reimburse the cost of restocking a rented item. The returned item cannot be modified in any form. A F C T e l e c o m U s e r M a n u a l | 17 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 10 64 10 65 10 103 10 565 10 568 10 569 10 643 10 655 11 17 11 18 12 6 12 19 13 6 13 10 13 11 13 14 13 30 13 33 NAME DESCRIPTION Fee charged to reimburse the cost of restocking a purchased item. The returned item cannot be modified in any form. A credit that is less than the full amount of the original Sales/Partial Credit purchase. The reason for the credit reduction must me due to a restocking or handling type fee. This transaction/service pair returns Sales Tax and FUSF. Avalara does not recommend using this combination for any type of telecom service. However, if you feel you Sales/Sales Tax and FUSF provide a service that is only subject to Sales Tax and FUSF, then you can use this transaction/service combination. The Point-of-Sale (POS) purchase of prepaid, pay-as-youSales/Debit-Wireless go wireless services sold by the phone carrier or a party controlled by the phone carrier. Sales/Central Office Sale of tangible property to a telecommunications Equipment-Sales provider for the provision of phone service. Sales/Central Office Use of tangible property to a telecommunications Equipment-Use provider for the provision of phone service. The Point-of-Sale (POS) purchase of prepaid, pay-as-youSales/Debit-Wireless go wireless services sold by a party other than the phone (Indirect Non-Carrier Sale) carrier or a party controlled by the phone carrier. Purchase of cell phone equipment restricted to a Sales/Locked Cell Phone particular cell phone network by a locking code. Shipping charge for FOB origin transactions. (Shipping Shipping/FOB Origin charges only.) Shipping charge for FOB destination transactions. Shipping/FOB Destination (Shipping charges only.) Basic flat-rate charges for natural gas services. (NonNatural Gas/Access Charge telecom. Natural gas only.) Natural gas charges for consumption of natural gas. Natural Gas/Consumption (Non-telecom. Natural gas only.) Basic monthly flat-rate charge for cellular/wireless Cellular/Access Charge service. Cellular/wireless per-minute and/or per-use charges. Cellular/Usage Charges are in addition to any monthly access or roaming charges billed to customer. One-time charge for activating a cellular/wireless Cellular/Activation account. Category for late charges that were originally taxed using Cellular/Late Charge one of the Cellular (13) transaction categories. Charges and fees for additional feature charges of Cellular/Feature Charge Cellular services. (Includes services such as call waiting, caller ID, call blocking, call forwarding, etc.) Per-use, per-minute charges for cellular use outside of Cellular/Roaming Charge the designated service area of the providing carrier. Sales/Restocking Fee – Purchase A F C T e l e c o m U s e r M a n u a l | 18 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 13 43 13 49 50 13 13 51 13 98 13 13 13 13 13 13 13 99 100 101 102 572 577 591 NAME DESCRIPTION Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. Cellular/Invoice Taxable amount or numbers of lines are irrelevant for this transaction/service type.) For use when carrier is passing actual traffic and not using safe harbor percentages. Cellular/wireless perCellular/Interstate Usage minute and/or per-use interstate charges. Charges are in addition to any interstate monthly access or interstate roaming charges billed to customer. For use when carrier is passing actual traffic and not using safe harbor percentages. Cellular/wireless perCellular/Intrastate Usage minute and/or per-use intrastate charges. Charges are in addition to any intrastate monthly access or intrastate roaming charges billed to customer. Portion of MRC, or per-minute charges, attributable to Cellular/International calls that originate inside the United States and terminate Usage outside the United States. For use when carrier is passing actual traffic and not using safe harbor percentages or for passing transactions Cellular/Access Number for multiple line accounts. Designates the number of access numbers assigned to an account. For use when carrier is passing actual traffic and not Cellular/Interstate Access using safe harbor percentages. Designates the portion of Charge the basic monthly access charge that is interstate. For use when carrier is passing actual traffic and not Cellular/Intrastate Access using safe harbor percentages. Designates the portion of Charge the basic monthly access charge that is intrastate. For use when carrier is passing actual traffic and not using safe harbor percentages. Per-use, per-minute Cellular/Interstate Roaming charges for interstate cellular use outside of the designated service area of the providing carrier. For use when carrier is passing actual traffic and not using safe harbor percentages. Per-use, per-minute Cellular/Intrastate Roaming charges for intrastate cellular use outside of the designated service area of the providing carrier. Cellular/Digital Download The purchase of goods such as ringtones downloaded to a cell phone. Charges and fees for additional feature charges of wireless services which are separate from voice transmission related features as defined by the FCC. Cellular/Enhanced Features (Includes services such as voicemail, interactive voice response, audiotext information services, and protocol processing.) Cellular/Access Charge-No Basic monthly flat rate charge for cellular/wireless service Contract that is sold without a contract. A F C T e l e c o m U s e r M a n u a l | 19 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 13 592 13 610 13 622 14 15 14 25 14 658 14 659 15 7 15 624 15 627 15 629 15 656 15 657 16 6 16 8 16 13 16 14 16 35 16 36 16 37 NAME DESCRIPTION For use when carrier is passing actual traffic and not Cellular/Access Number-No using safe harbor percentages. Designates the number Contract of access numbers assigned to a wireless account that is sold without a contract. Cellular/Access A fee charged for early termination of Cellular service. Early Termination Fees A fee charged to cellular customers for Text Messaging Cellular/Text Message services Supply of goods for consideration within countries other International/Product than Canada, USA, and US territories. International calls inbound to the USA that are billed to an international address. Outbound international calls International/USA Inbound should be mapped as Interstate/International Toll calls [1/12]. (Call must be billed to a non-USA address.) Supply of goods for consideration within India in which International/Product the location of the supplier and the place of supply occur India Interstate Supply in different states or territories. Supply of goods for consideration within India in which International/Product the location of the supplier and the place of supply occur India Intrastate Supply in the same state or territory. All telephone service in countries other than the USA, Telephony/Service Canada, Puerto Rico and the Virgin Islands. All wireless telephone service in countries other than the Telephony/Wireless Service USA, Canada, Puerto Rico and the Virgin Islands. All Internet Access in countries other than Canada, USA Telephony/Internet Access and US territories. Telephony/Messaging All Messaging Services in countries other than Canada, Services USA and US territories. Telephone service in India in which the location of the Telephony/Service - India supplier and the place of supply occur in different states Interstate Supply or territories. Telephone service in India in which the location of the Telephony/Service - India supplier and the place of supply occur in the same state Intrastate Supply or territory. Cable Television/Access Basic monthly flat-rate charge for cable television service. Charge (Alias Basic Service) One-time charge for the installation of any cable Cable Televsion/Install television service. Cable Televsion/Equipment Charges for cable equipment repair and service. Repair Cable Televsion/Late Category for late charges that were originally taxed using Charge one of the Cable (16) transaction categories. Cable Televsion/Premium Premium monthly flat-rate charge for cable television Service premium channel(s) service. Cable Televsion/Pay Per Pay per view monthly charges for cable television pay per View Service view service. Cable Televsion/Equipment Equipment (box/switch) monthly charges for cable Rental television. A F C T e l e c o m U s e r M a n u a l | 20 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 16 39 16 584 16 610 16 615 16 654 18 6 18 8 18 13 18 14 18 35 18 36 18 37 18 39 19 19 6 8 19 11 19 13 19 14 19 21 19 30 19 37 NAME Cable Televsion/TV Guide DESCRIPTION Charge for TV Guide Sourcing publication for cable television services. Cable Televsion/Digital Charge for cable television digital tier service. Channel Tier Cable Television A fee charged for early termination of Cable Television Early Termination Fees Service. Cable Sales of cable television equipment. Television/Equipment Sales Cable Television/ Equipment (box/switch) monthly charges for cable Equipment Rental Basic television that provide basic service only. Satellite Televsion/Access Basic monthly flat-rate charge for satellite television Charge (Alias Basic Service) service. One-time charge for the installation of any satellite Satellite Televsion/Install television service. Satellite Televsion/Equipment Charges for satellite equipment repair and service. Repair Satellite Televsion/Late Category for late charges that were originally taxed using Charge one of the Satellite (18) transaction categories. Satellite Premium monthly flat rate charge for satellite television Televsion/Premium Service premium channel(s) service. Satellite Televsion/Pay Per Pay per view monthly charges for satellite television pay View Service per view service. Satellite Equipment (box/switch) monthly charges for satellite Televsion/Equipment television. Rental Satellite Televsion/TV Charge for TV Guide Sourcing publication for satellite Guide television service. VoIP/Access Charge Basic monthly flat rate for VoIP service. VoIP/Install Charge for installation of VoIP services. One-time charges for activating a VoIP account. VoIP/Activation (Mutually exclusive of the other VoIP charges.) Charge for repair of equipment necessary to make VoIP VoIP/Equipment Repair calls. Category for late charges that were originally taxed using VoIP/Late Charge one of the VoIP (19) transaction categories. Designates the quantity of numbers a VoIP customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the VoIP/Lines number of lines designated in the lines field.) This service type will return E911 at the landline rate regardless of whether it is paired with the VoIP or VoIPA transaction type. Charges and fees for additional feature charges of VoIP VoIP/Feature Charge services. (Includes services such as call waiting, caller ID, call blocking, call forwarding, etc.) Charge for renting equipment necessary to make VoIP VoIP/Equipment Rental phone calls. A F C T e l e c o m U s e r M a n u a l | 21 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 19 41 19 43 19 48 19 49 19 50 19 51 19 52 19 53 19 566 19 577 19 578 NAME DESCRIPTION Designates the number of VoIP PBX extensions a VoIP service customer is using. Taxable amount is irrelevant VoIP/PBX Extension for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 19/566 and 19/578. Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. VoIP/Invoice Taxable amount or numbers of lines are irrelevant for this transaction/service type.) This will tax similar to Cellular/Access Charge. Federal VoIP/Wireless Access and State USF are applied, but at the wireless safe harbor Charge rate. Portion of MRC, or per-minute charges, attributable to VoIP/Interstate Usage calls that cross state lines but do not leave the United States. Portion of MRC, or per-minute charges, attributable to VoIP/Intrastate Usage calls that do not cross state lines. Portion of MRC, or per-minute charges, attributable to VoIP/International Usage calls that originate inside the United States and terminate outside the United States. Designates the quantity of numbers a VoIP customer is using. (Taxable amount and number of lines are irrelevant for this service type. Tax is calculated based on VoIP/Wireless Lines the number of transactions passed. For two lines you would pass two transactions.) This service type will return E911 at the wireless rate regardless of whether it is paired with the VoIP or VoIPA transaction type. Fixed, monthly charge associated with transferring an VoIP/LNP existing phone number to a VoIP service provider. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP PBX connecting the subscriber's premises to the public VoIP/PBX Outbound switched network. Taxable amount is irrelevant for this Channel transaction/service type. Tax is calculated based on the number of outbound channels designated in the lines field. Used in Conjunction with 19/41 and 19/578. Charges and fees for additional feature charges of VoIP services which are separate from voice transmission VoIP/Enhanced Features related features as defined by the FCC. (Includes services such as voicemail, interactive voice response, audiotext information services, and protocol processing.) Designates the number of PBX trunks a VoIP customer is using. (Taxable amount is irrelevant for this VoIP/PBX transaction/service type. Tax is calculated based on the number of trunks designated in the lines field. Used in conjunction with 19/41 and 19/566.) A F C T e l e c o m U s e r M a n u a l | 22 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 19 579 19 580 19 582 19 596 19 635 20 20 6 8 20 11 20 13 20 14 20 21 20 30 20 37 NAME DESCRIPTION Designates the number of High Capacity Trunks a customer is using. Taxable amount is irrelevant for this VoIP/PBX High Capacity transaction/service type. Tax is calculated based on the number of High Capacity Trunks designated in the lines field. Used in conjunction with 19/580 and 19/582. Designates the number of VoIP extensions a VoIP service customer is using on a High Capacity Trunk. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field.)Designates the number of VoIP/High Capacity VoIP extensions a VoIP service customer is using on a Extension High Capacity Trunk. Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 19/579 and 19/582. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP High Capacity Trunk connecting the subscriber's premises to the public switched network. Taxable amount is VoIP/High Capacity irrelevant for this transaction/service type. Tax is Outbound Channel calculated based on the number of outbound channels designated in the lines field. Used in conjunction with 19/579 and 19/580. VoIP/Access-Local Only Basic monthly flat rate charge for Local Only Service VoIP. Service Monthly recurring charge for access to a VoIP toll free VoIP/Toll Free Number number. VoIPA/Access Charge Basic monthly flat rate for VoIP service. VoIPA/Install Charge for installation of VoIP services. One-time charges for activating a VoIP account. VoIPA/Activation (Mutually exclusive of the other VoIP charges.) Charge for repair of equipment necessary to make VoIP VoIPA/Equipment Repair calls. Category for late charges that were originally taxed using VoIPA/Late Charge one of the VoIPA (20) transaction categories. Designates the quantity of numbers a VoIP customer is using. (Taxable amount is irrelevant for this transaction/service type. Tax is calculated based on the VoIPA/Lines number of lines designated in the lines field.) This service type will return E911 at the landline rate regardless of whether it is paired with the VoIP or VoIPA transaction type. Charges and fees for additional feature charges of VoIP VoIPA/Feature Charge services. (Includes services such as call waiting, caller ID, call blocking, call forwarding, etc.) Charge for renting equipment necessary to make VoIP VoIPA/Equipment Rental phone calls. A F C T e l e c o m U s e r M a n u a l | 23 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 20 41 20 43 20 48 20 49 20 50 20 51 20 52 20 53 20 566 20 577 20 578 NAME DESCRIPTION Designates the number of VoIP PBX extensions a VoIP service customer is using. Taxable amount is irrelevant VoIPA/PBX Extension for this transaction/service type. Tax is calculated based on the number of extensions designated in the lines field. Used in conjunction with 20/566 and 20/578. Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. VoIPA/Invoice Taxable amount or numbers of lines are irrelevant for this transaction/service type.) This will tax similar to Cellular/Access Charge. Federal VoIPA/Wireless Access and State USF are applied, but at the wireless safe harbor Charge rate. Portion of MRC, or per-minute charges, attributable to VoIPA/Interstate Usage calls that cross state lines but do not leave the United States. Portion of MRC, or per-minute charges, attributable to VoIPA/Intrastate Usage calls that do not cross state lines. Portion of MRC, or per-minute charges, attributable to VoIPA/International Usage calls that originate inside the United States and terminate outside the United States. Designates the quantity of numbers a VoIP customer is using. (Taxable amount and number of lines are irrelevant for this service type. Tax is calculated based on VoIPA/Wireless Lines the number of transactions passed. For two lines you would pass two transactions.) This service type will return E911 at the wireless rate regardless of whether it is paired with the VoIP or VoIPA transaction type. Fixed, monthly charge associated with transferring an VoIPA/LNP existing phone number to a VoIP service provider. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP PBX connecting the subscribers premises to the public VoIPA/PBX Outbound switched network. Taxable amount is irrelevant for this Channel transaction/service type. Tax is calculated based on the number of outbound channels designated in the lines field. Used in conjunction with 20/41 and 20/578. Charges and fees for additional feature charges of VoIP services which are separate from basic transmission VoIPA/Enhanced Features services. (Includes services such as voicemail, interactive voice response, audiotext information services, and protocol processing.) Designates the number of PBX trunks a VoIP customer is using. (Taxable amount is irrelevant for this VoIPA/PBX transaction/service type. Tax is calculated based on the number of trunks designated in the lines field. Used in conjunction with 20/41 and 20/566.) A F C T e l e c o m U s e r M a n u a l | 24 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 20 579 20 580 20 582 20 596 20 635 21 21 21 49 21 50 21 55 21 56 24 59 24 60 24 61 24 595 24 636 NAME DESCRIPTION Designates the number of High Capacity Trunks a customer is using. Taxable amount is irrelevant for this VoIPA/PBX High Capacity transaction/service type. Tax is calculated based on the number of High Capacity Trunks designated in the lines field. Used in conjunction with 20/580 and 20/582. Designates the number of VoIP extensions a VoIP service customer is using on a High Capacity Trunk. Taxable amount is irrelevant for this transaction/service type. Tax VoIPA/High Capacity is calculated based on the number of extensions Extension designated in the lines field. Used in conjunction with 20/579 and 20/582. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP High Capacity Trunk connecting the subscriber's premises to the public switched network. Taxable amount is VoIPA/High Capacity irrelevant for this transaction/service type. Tax is Outbound Channel calculated based on the number of High Capacity Outbound Channels designated in the lines field. Used in conjunction with 20/579 and 20/580. VoIPA/Access-Local Only Basic monthly flat rate charge for Local Only Service VoIP. Service Monthly recurring charge for access to a VoIP toll free VoIPA/Toll Free Number number. Line charges for provisioning of service to a coin operated phone. (Taxable amount is irrelevant for this Payphone/Lines transaction/service type. Tax is calculated based on the number of lines designated in the lines field.) Charges for calls that cross state boundaries from a coin Payphone/Interstate Usage operated phone. Charges for calls that do not cross state boundaries from Payphone/Intrastate Usage a coin operated phone. Payphone/Local Usage Charges for local calls from a coin operated phone. MRC related charges for the provisioning of service to a Payphone/Provisioning coin-operated phone. An agreement for the use of software for a specified Software/Licensed period. Transferrable to the customer by physical means, Software which the customer retains. Software/Software A contract that covers the contract holder for the Maintenance Agreement expense of maintaining and updating software. Software/Report on CD or Report generated and provided to end user delivered on Paper Form CD or paper. An agreement for the use of software for a specified Software/Downloaded period. Transferable to the computer by electronic Licensed Software means. A service that provides access and usage of software that remains in the possession of the seller and is remotely Software/Remotely accessed by a customer. If data is manipulated by the Accessed Software software, it is user created data. A F C T e l e c o m U s e r M a n u a l | 25 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 25 62 25 646 25 660 58 563 58 564 58 604 58 605 59 6 59 8 59 11 59 13 59 14 59 21 59 30 59 37 59 41 59 43 59 49 59 50 NAME DESCRIPTION Timesharing/Information Access to a computer through a remote terminal that Retrieval allows retrieval of stored data created by the user. Access to a computer through a remote terminal that Timesharing/Information allows retrieval of stored data created by the service Retrieval (Provider Data) provider. Access to a computer through a remote terminal for the Timesharing/No Retrievalpurposes of data storage. Retrieval only for disaster Disaster Recovery recovery. Lease of Dark Fiber installed on property owned by the Dark Fiber Lease/Facilities lessor. Dark Fiber Lease/Non- Lease of Dark Fiber installed on property not owned by Facilities the lessor. Dark Fiber Lease Lease of Dark Fiber installed on property owned by the Facilities/Local Svc lessor used for local telecommunications service Dark Fiber Lease/Non- Lease of Dark Fiber installed on property not owned by Facilities-Local Svc the lessor used for local telecommunications service VoIP Nomadic/Access Basic monthly flat rate for VoIP service. Charge VoIP Nomadic/Install Charge for installation of VoIP services. One-time charges for activating a VoIP account. VoIP Nomadic/Activation (Mutually exclusive of the other VoIP charges.) VoIP Nomadic/Equipment Charge for repair of equipment necessary to make VoIP Repair calls. Category for late charges that were originally taxed using VoIP Nomadic/Late Charge one of the VoIP Nomadic transaction categories. Designates the quantity of numbers a VoIP customer is using. (Taxable amount is irrelevant for this VoIP Nomadic/Lines transaction/service type. Tax is calculated based on the number of lines designated in the lines field.) Charges and fees for additional feature charges of VoIP VoIP Nomadic/Feature services. (Includes services such as call waiting, caller ID, Charge call blocking, call forwarding, etc.) VoIP Nomadic/Equipment Charge for renting equipment necessary to make VoIP Rental phone calls. Designates the number of VoIP PBX extensions a local service customer is using. Taxable amount is irrelevant VoIP Nomadic/PBX for this transaction/service type. Tax is calculated based Extension on the number of extensions designated in the lines field. Used in conjunction with 59/566 and 59/578. Mapping category for transactions on a per invoice basis. (Tax is based per invoice per account per billing cycle. VoIP Nomadic/Invoice Taxable amount or numbers of lines are irrelevant for this transaction/service type.) Portion of MRC, or per-minute charges, attributable to VoIP Nomadic/Interstate calls that cross state lines but do not leave the United Usage States. VoIP Nomadic/Intrastate Portion of MRC, or per-minute charges, attributable to Usage calls that do not cross state lines. A F C T e l e c o m U s e r M a n u a l | 26 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 59 51 59 53 59 566 59 577 59 578 59 579 59 580 59 582 59 635 60 10 61 585 NAME DESCRIPTION VoIP Nomadic/International Usage Portion of MRC, or per-minute charges, attributable to calls that originate inside the United States and terminate outside the United States. Fixed, monthly charge associated with transferring an VoIP Nomadic/LNP existing phone number to a VoIP service provider. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP PBX connecting the subscriber's premises to the public VoIP Nomadic/PBX switched network. Taxable amount is irrelevant for this Outbound Channel transaction/service type. Tax is calculated based on the number of outbound channels designated in the lines field. Used in conjunction with 59/41 and 59/578. Charges and fees for additional feature charges of VoIP services which are separate from basic transmission VoIP Nomadic/Enhanced services. (Includes services such as voicemail, interactive Features voice response, audiotext information services, and protocol processing.) Designates the number of PBX trunks a VoIP customer is using. (Taxable amount is irrelevant for this VoIP Nomadic/PBX transaction/service type. Tax is calculated based on the number of trunks designated in the lines field. Used in conjunction with 59/41 and 59/566.) Designates the number of High Capacity Trunks a customer is using. Taxable amount is irrelevant for this VoIP Nomadic/PBX High transaction/service type. Tax is calculated based on the Capacity number of High Capacity Trunks designated in the lines field. Used in conjunction with 59/580 and 59/582. Designates the number of VoIP extensions a VoIP service customer is using on a High Capacity Trunk. Taxable amount is irrelevant for this transaction/service type. Tax VoIP Nomadic/High is calculated based on the number of extensions Capacity Extension designated in the lines field. Used in conjunction with 59/579 and 59/582. Designates the number of voice grade communications channels leaving a subscriber's premises through a VoIP High Capacity Trunk connecting the subscriber's premises VoIP Nomadic/High to the public switched network. Taxable amount is Capacity Outbound irrelevant for this transaction/service type. Tax is Channel calculated based on the number of outbound channels designated in the lines field. Used in conjunction with 59/579 and 59/580. VoIP Nomadic/Toll Free Monthly recurring charge for access to a VoIP Nomadic Number toll free number. Satellite per minute and/or per use charges. Avalara has added this combination for development and testing Satellite Phone/Usage purposes. Avalara plans that the combination will be available for use in tax production approximately the first of the year. VPN/Interstate MPLS Charge for Interstate Virtual Private Network using MPLS. A F C T e l e c o m U s e r M a n u a l | 27 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 61 586 61 650 61 651 61 652 61 653 64 648 64 649 65 6 65 11 65 14 65 30 65 43 65 49 NAME DESCRIPTION VPN/Intrastate MPLS Charge for Intrastate Virtual Private Network using MPLS. One-time charge for the activation of an intrastate virtual VPN/MPLS Intrastate private network (VPN) using multiprotocol label switching Activation (MPLS). It is mutually exclusive of the other VPN charges. One-time charge for the installation, administration, modification, or termination of a virtual private network (VPN) using multiprotocol label switching (MPLS). This VPN/MPLS Install should be used for install fee, change order fees, addservice fees, and termination account/service fees, but not for repair/service fees. One-time charge for manual, physical service to a virtual private network (VPN) using multiprotocol label switching (MPLS), such as a truck roll to the customer premise. All VPN/MPLS Service manual repair services should fall into this category. This designation should not be used for administrative fees or service change fees. One-time charge for the activation of an interstate virtual VPN/MPLS Interstate private network (VPN) using multiprotocol label switching Activation (MPLS). It is mutually exclusive of the other VPN charges. Per-minute and per-participant charges for dial-in service provided in conjunction with connecting conference Conferencing/Intrastate participants utilizing a conferencing bridge when all with FCC Jurisdiction participants are located within one state. Intended to be used to return Federal charges with the State charges. Per-minute and per-participant charges for dial in service provided in conjunction with connecting conference Conferencing/Interstate participants utilizing a conferencing bridge when all without FCC Jurisdiction participants are located in different states. Intended to be used to return State charges for conferencing without Federal charges. Non-Interconnected Basic monthly flat rate for non-interconnected VoIP VoIP/Access Charge service. One-time charges for activating a non-interconnected Non-Interconnected VoIP account. (Mutually exclusive of the other VoIP VoIP/Activation charges.) Category for late charges that were originally taxed using Non-Interconnected one of the “Non-Interconnected VoIP” transaction VoIP/Late Charge categories. Charges and fees for additional feature charges of nonNon-Interconnected interconnected VoIP services. (Includes services such as VoIP/Feature Charge call waiting, caller ID, call blocking, call forwarding, etc.) Mapping category for non-interconnected VoIP transactions on a per invoice basis. (Tax is based per Non-Interconnected invoice per account per billing cycle. Taxable amount or VoIP/Invoice numbers of lines are irrelevant for this transaction/service type.) Portion of MRC, or per-minute charges, attributable to Non-Interconnected non-interconnected VoIP calls that cross state lines but VoIP/Interstate Usage do not leave the United States. A F C T e l e c o m U s e r M a n u a l | 28 of 401 Copyright 2018 Avalara, Inc. Table 2-1 Valid Transaction / Service Pairs IDENTIFIER Trans Type Svc Type 65 50 65 51 65 577 NAME DESCRIPTION Portion of MRC, or per-minute charges, attributable to non-interconnected VoIP calls that do not cross state lines. Portion of MRC, or per-minute charges, attributable to Non-Interconnected non-interconnected VoIP calls that originate inside the VoIP/International Usage United States and terminate outside the United States. Charges and fees for additional feature charges of noninterconnected VoIP services which are separate from Non-Interconnected basic transmission services. (Includes services such as VoIP/Enhanced Features voicemail, interactive voice response, audio text information services, and protocol processing.) Non-Interconnected VoIP/Intrastate Usage Additional Transaction/Service Pairings Supported in Telecom Note: These Transaction/Service pairings are available for use in the U.S only. Table 2-2 Transaction and Service Types IDENTIFIER Trans Type Svc Type NAME DESCRIPTION 24 491 Software/Canned Software 24 492 Software/Modified Charges 24 493 Software/Modified Software 24 494 Software/Custom Software 24 495 Software/Canned Software-Load and Leave 24 496 Software/Custom Software-Load and Leave Software written for multiple users. Transferable to the computer by physical means, which the customer retains. Charges to modify canned software for a specific user. Software modified for a specific purpose for a specific user. Transferable to the computer by physical means which the customer retains Software written for a specific purpose for a specific user. Transferable to the computer by physical means which the customer retains Software written for multiple users. Transferable to the computer by physical means which the software provider retains after installation. Software written for a specific purpose for a specific user. Transferable to the computer by physical means which the software provider retains after installation. A F C T e l e c o m U s e r M a n u a l | 29 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER Trans Type Svc Type NAME DESCRIPTION 24 497 Software/Licensed Software-Load and Leave 24 498 Software/Modified Software-Load and Leave 24 499 Software/Downloaded Custom Software 24 500 Software/Downloaded Canned Software 24 502 Software/Modified Software-Download 24 503 Software/Software Set Up-OptionalCanned 24 504 Software/Software Set Up-OptionalCustom 24 505 Software/Software Set Up-OptionalDownloaded 24 506 Software/Software Set Up-OptionalLoad and Leave An agreement for the use of software for a specified period. Transferable to the computer by physical means which the software provider retains after installation. Software modified for a specific purpose for a specific user. Transferable to the computer by physical means which the software provider retains after installation. Software written for a specific purpose for a specific user. Transferable to the computer by electronic means. Software written for multiple users. Transferable to the computer by electronic means. Software modified for a specific purpose for a specific user. Transferable to the computer by electronic means. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by physical means that is retained by the user. The user has the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. This covers custom software no matter the means transferred. The user has the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by electronic means. The user has the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by physical means that is retained by the seller. The user has the option of installing the software themselves. A F C T e l e c o m U s e r M a n u a l | 30 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER Trans Type Svc Type NAME DESCRIPTION 24 507 Software/Software Set Up-OptionalModified 24 508 Software/Software Set Up-MandatoryCanned 24 509 Software/Software Set Up-MandatoryCustom 24 510 Software/Software Set Up-MandatoryDownloaded 24 511 Software/Software Set Up-MandatoryLoad and Leave 24 512 Software/Software Set Up-MandatoryModified 24 513 Software/Computer ConsultingOptional-Canned 24 514 Software/Computer ConsultingMandatory-Canned Charges for the set up and installation of software into the purchaser’s equipment. Covering modified software transferred by physical means that is retained by the user. The user has the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by physical means that is retained by the user. The user does not have the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. This covers custom software no matter the means transferred. The user does not have the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by electronic means. The user does not have the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering pre-written software transferred by physical means that is retained by the seller. The user does not have the option of installing the software themselves. Charges for the set up and installation of software into the purchaser’s equipment. Covering modified software transferred by physical means that is retained by the user. The user does not have the option of installing the software themselves. Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. A F C T e l e c o m U s e r M a n u a l | 31 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER NAME DESCRIPTION Trans Type Svc Type 24 515 Software/Computer ConsultingOptional-Custom 24 516 Software/Computer ConsultingMandatory-Custom 24 517 Software/Computer ConsultingOptional-Downloaded 24 518 Software/Computer ConsultingMandatory-Downloaded 24 519 Software/Computer ConsultingOptional-Load and Leave 24 520 Software/Computer ConsultingMandatory-Load and Leave 24 521 Software/Computer ConsultingOptional-Modified 24 522 Software/Computer ConsultingMandatory-Modified 24 523 Software/Computer Training-OptionalCanned 24 524 Software/Computer TrainingMandatory-Canned 24 525 Software/Computer Training-OptionalCustom 24 526 Software/Computer TrainingMandatory-Custom Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. Charges often considered design and planning for software but not to include actual training. Charges for training the purchaser on the use of new software. The training is for canned software and the customer has a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for canned software and the customer does not have a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for custom software and the customer has a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for custom software and the customer does not have a choice on whether to take the course. A F C T e l e c o m U s e r M a n u a l | 32 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER Trans Type Svc Type NAME DESCRIPTION 24 527 Software/Computer Training-OptionalDownloaded 24 528 Software/Computer TrainingMandatory-Downloaded 24 529 Software/Computer Training-OptionalLoad and Leave 24 530 Software/Computer TrainingMandatory-Load and Leave 24 531 Software/Computer Training-OptionalModified 24 532 Software/Computer TrainingMandatory-Modified 25 533 Timesharing/Timesharing - Off-Site Use of CPU - General Rule 25 534 Timesharing/CPU Located out of State 29 128 Books-Educational/College & Trade School 32 106 Electronic Equipment & Computer Hardware/General Rule 32 174 32 175 Electronic Equipment & Computer Hardware/Monitors Less Than 4 Inches Electronic Equipment & Computer Hardware/Monitors Between 5-14 inches Charges for training the purchaser on the use of new software. The training is for pre-written software transferred electronically and the customer has a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for pre-written software transferred electronically and the customer does not have a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for pre-written software transferred by a medium kept by the purchaser and the customer has a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for pre-written software transferred by a medium kept by the purchaser and the customer does not have a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for modified software and the customer has a choice on whether to take the course. Charges for training the purchaser on the use of new software. The training is for modified software and the customer does not have a choice on whether to take the course. Access to computer through a remote terminal that allows computations. Access to computer through a remote terminal that allows computations. Books used specifically for students of college and trade school. Covers any electronic equipment or computer hardware not otherwise mentioned. Monitors or Device and Monitors with a viewing screen of less than 4 inches. Monitors or Device and Monitors with a viewing screen of between 5-14 inches. A F C T e l e c o m U s e r M a n u a l | 33 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER NAME DESCRIPTION Electronic Equipment & Computer Hardware/Monitors Between Than 1534 Inches Electronic Equipment & Computer Hardware/Monitors Greater Than 35 Inches Monitors or Device and Monitors with a viewing screen of between 15-34 inches. Monitors or Device and Monitors with a viewing screen of greater than 35 inches. Any tangible personal property not otherwise considered in any other transaction type/service type. Books that have coupons enclosed to use as discounts at various establishments. Trans Type Svc Type 32 176 32 177 34 106 General Merchandise/General Rule 34 230 General Merchandise/Coupon Books 34 232 General Merchandise/Non-Lead Based Batteries 34 574 General Merchandise/Fixture 36 247 Magazines/Subscription-AnnuallyDelivered by US Mail 36 250 Magazines/Subscription-QuarterlyDelivered by US Mail 36 361 Magazines/Digital Product – Retail 36 362 Magazines/Digital Product – Subscription 42 361 Newspaper/Digital Product - Retail 42 362 Newspaper/Digital Product Subscription 44 387 Rentals & Leasing/Movie Rentals-Private Use--Digital Download 47 414 Services Printing/Printing Services 47 415 Services Printing/Copying Services Batteries Tangible personal property that is installed in real property and qualifies as a fixture of the real property. A publication with a soft cover and indexed articles published once a year delivered by Second Class Mail or below. A publication with a soft cover and indexed articles published every three months delivered by Second Class Mail or below. A magazine publication transveyed electronically and sold online on a per copy basis. A magazine publication transveyed electronically and sold online as part of a subscription to the magazine. A newsprint publication transveyed electronically and sold online on a per copy basis. A newsprint publication transveyed electronically and sold online as part of a subscription to the newspaper. Movies rented for private viewing transveyed by electronic means Charges for printing or imprinting items unto tangible personal property provided directly or indirectly by the customer. Charges for duplicating customer provided materials to another document. A F C T e l e c o m U s e r M a n u a l | 34 of 401 Copyright 2018 Avalara, Inc. Table 2-2 Transaction and Service Types IDENTIFIER NAME DESCRIPTION Trans Type Svc Type 48 416 Services Professional/Credit Card Processing Fee-Part of Sale 48 417 Services Professional/Credit Card Processing Fee-Separate Sale 48 420 Services Professional/Protection & Security Services 48 434 Services Professional/Advertising 48 439 Services Professional/Background Music Services 48 447 Services Professional/Telephone Answering Service 48 557 Services Professional/ServiceInformation Systems Services 50 473 Services Repair/Repair Parts - General Rule 57 560 Digital Goods/Download from Internet 57 561 Digital Goods/Download to Phone 57 609 Digital Goods/Streaming Video A fee charged by the vendor to recover credit card processing cost. The fee is charged as part of the sale. A fee charged by the vendor to recover credit card processing cost. The fee is charged as a separate sale. A fee paid for the service of protecting or securing real or tangible personal property. Fees paid for the services used generally to advertise a company's message in printed form Services that provide music for a fee to various businesses to create further ambiance. Fee charged to answer phones and take messages on behalf of an individual or business. Charge for the manipulation of user’s data. This is not to be confused with the transmission of data. Parts used to regain the function of or extend the operational life of an item. The purchase of goods such as music, books, or phone ringtones downloaded from the internet. The purchase of goods such as ringtones downloaded to a cell phone. The purchase of video via the internet. The purchaser does not retain possession of the video. File transervdescsau.txt A file named transervdescsau.txt is present in the database directory in each month’s update. This file contains all of the valid transaction type/service type pairs, with the description of those types and of the pairing. It is a fixed format file, though there are spaces and commas between some of the fields for readability. It is described in the table below. transervdesc.txt File Format Key Description Alternate Flag Market Number Market Name Columns 1-1 3-4 6-35 A F C T e l e c o m U s e r M a n u a l | 35 of 401 Copyright 2018 Avalara, Inc. transervdesc.txt File Format Key Description Transaction Type Number Transaction Type Description Service Type Number Service Type Description Long Description Columns 38-39 41-90 93-95 97-146 148-end of line Transaction Mapping Guidelines Long Distance Transaction and Service Types The long distance transaction and service types provide the ability to tax 1+, 0+, 800, 900, WATS and private lines for both interstate and intrastate calls. The capability to tax access charges, late charges, services, installations and International USA Inbound transactions is also provided. Refer to Table 2-3 for a list of combined transaction and service types that are used for taxing long distance transactions. Table 2-3 Long Distance Transaction and Service Types Transaction Types 1 – Interstate 2 – Intrastate 3 – Other Service Types 1 – Toll 2 – Toll-Free 3 – WATS 4 – Private Line 12 – International Toll 14 – Late Charge 16 – 900 27 – Data 54 – Directory Assistance 562 – Local Loop 635 – Toll Free Number 1 – Toll 2 – Toll-Free 3 – WATS 4 – Private Line 5 – Local Exchange 14 – Late Charge 16 – 900 27 – Data 54 – Directory Assistance 630 – Private Line (10% Rule) 631 – Data (10% Rule) 635 – Toll Free Number 6 – Access Charge 6 – Local Loop 9 – Directory Ads A F C T e l e c o m U s e r M a n u a l | 36 of 401 Copyright 2018 Avalara, Inc. Table 2-3 Long Distance Transaction and Service Types Transaction Types Service Types 14 – Late Charge 34 – Conference Bridge 37 – Equipment Rental 38 – Wire Maintenance 46 – PICC 47 – No Pick PICC 57 – Data Processing 96 – No Pick PICC Bundle 97 – PICC Bundle 570 – Directory Listing 575 – Conference Bridge- Intrastate 576 – Conference Bridge-Intrastate w Dial-in 589 – Conference Bridge-Interstate 593 – Info Svcs-Private Physical Trans 594 – Info Svcs-Private Electronic Trans 597 – Info Svcs-Public-Electronic Trans 598 – Info Svcs-Public Physical Trans 599 – E-mail hosting service 600 – Real Property Rental 602 – Services-Professional 603 – Online Services 608 – Conference Bridge Interstate w Dial-In 614 – Telecom Equipment Rental 632 – Service Contracts 638 – Security Monitoring Services 639 – Streaming Internet Video 644 – Info Svcs-Pub Elec Trans (Fin & Securities) 7 – Service 8 – Install 8 – Local Install 11 – Local Activation 14 – Late Charge 25 – USA Inbound 4 – Non-recurring 14 – International Wireless Transaction and Service Types Refer to Table 2-4 for a list of combined transaction and service types that are provided for taxing cellular and PCS long distance transactions. Table 2-4 Wireless Transaction and Service Types Transaction Types 13 – Cellular Service Types 6 – Access Charge 10 – Usage 11 – Activation A F C T e l e c o m U s e r M a n u a l | 37 of 401 Copyright 2018 Avalara, Inc. Table 2-4 Wireless Transaction and Service Types Transaction Types Service Types 14 – Late Charge 30 – Feature Charge 33 – Roaming Charge 49 – Interstate Usage 50 – Intrastate Usage 98 – Access number 99 – Interstate Access Charge 100 – Intrastate Access Charge 101 – Interstate Roaming 102 – Intrastate Roaming 572 – Digital Download 577 – Enhanced Features 591 – Access Charge-No Contract 592 – Access Number-No Contract 610 – Early Termination Fees 622 – Text Message Enhanced Service Transaction and Service Types These transaction and service types allow the taxing of internet, paging, FAX, and voice mail services. Refer to Table 2-5 for a list of combined transaction and service types that are typically used for taxing enhanced service transactions. Table 2-5 Enhanced Service Transaction and Service Types Transaction Types 6 – Paging 8 – Fax 9 – Voice mail Service Types 6 – Access Charge 10 – Usage 11 – Activation 13 – Equipment Repair 10 – Usage 6 – Access Charge 10 – Usage 11 – Activation 14 – Late Charge Internet Transaction and Service Types The federal government and most states do not tax Internet usage. AFC will determine this based upon the jurisdiction information provided. If taxable, AFC applies the appropriate taxes for the given jurisdiction. Refer to Table 2-6 for a list of combined transaction and service types that are used for taxing Internet usage. Table 2-6 Internet Transaction and Service Types Transaction Types 5 – Internet Service Types 6 – Access Charge A F C T e l e c o m U s e r M a n u a l | 38 of 401 Copyright 2018 Avalara, Inc. 29 – Web Hosting 58 – Access Line Local Service Transaction and Service Types Local Service mapping demands special attention because more than one Transaction/Service Type is required to generate all of the necessary rated and per line taxes. Refer to Table 2-7 for a list of combined transaction and service types that are associated with local service. Table 2-7 Local Service Transaction and Service Types Transaction Types 7 – Local Service Types 4 – Private Line 5 – Local Exchange 14 – Late Charge 20 – FCC Subscriber Line Fee 20 – Number Portability Recovery 21 – Lines 24 – PBX/Trunk 27 – Data 30 – Local Feature Charge 40 – Centrex / DID Extension 41 – PBX Extension 42 – Local Trunk(Alias as Local Centrex) 43 – Invoice 45 – High Capacity Trunk 84 – Late Charge Bundle 85 – Local Exchange Bundle 86 – FCC Subscriber Line Fee Bundle 86 – Number Portability Recovery Bundle 87 – Lines Bundle 89 – PBX Trunk Bundle 90 – Local Feature Charge Bundle 91 – Centrex Extension Bundle 92 – PBX Extension Bundle 93 – Centrex Trunk Bundle 94 – Invoice Bundle 95 – High Capacity Trunk Bundle 566 – PBX Outbound Channel 567 – PBX Outbound Channel Bundle 580 – High Capacity Extension 581 – High Capacity Extension Bundle 582 – High Capacity Outbound Channel 583 – High Capacity Outbound Channel Bundle 587 – Centrex Outbound Channel 588 – Centrex Outbound Channel Bundle 612 – FCC Subscriber Line Fee Multi Line 613 – FCC Subscriber Line Fee Multi Line Bundle 623 – Centrex Invoice 625 – Customer Premise Equip Rental 641 – FCC Subscriber Line Charge Centrex A F C T e l e c o m U s e r M a n u a l | 39 of 401 Copyright 2018 Avalara, Inc. Table 2-7 Local Service Transaction and Service Types Transaction Types Service Types 642 – FCC Subscriber Line Charge Centrex Bundle The following transaction/service combinations should be passed to AFC in order to capture all local taxes. Required Transactions to Return Rated Charges Taxation of Local Exchange starts with passing five required transactions. 1. Local / Local Exchange (7/5) – Charges for the monthly recurring charge, usage, local loop, local flat rates, and other similar charges for local telecom service. (Due to unique Federal Taxation the FCC Subscriber Line Fee and Local Number Portability must be distinguished.) 2. Local / FCC Subscriber Fee (7/20) – Charge for assessing the carrier's subscriber line charge to a local service customer. 3. Local / LNP (7/20) – Fixed monthly charge through which local telephone companies may recover some of the costs associated with providing local number portability service. (Both the 7/05 and 7/20 are sent in with the corresponding charge. The lines fields must be set to zero.) 4. Local / Invoice (7/43) – This combination returns taxes assessed on a per-invoice basis. The charge and lines fields are irrelevant and must be set to zero. Pass one transaction for each invoice. 5. Local / Data (7/27) - Local data service charge, MRC, and other related service type charges and features. (This combination is appropriate for transmissions that carry data exclusively. Use Private Line if any component is voice. This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services. This is not for Internet Access provided over DSL lines.) Required Transactions to Return Per-Line Charges Not all of the necessary telecom taxes are returned using transaction/service combinations that return rated charges. There exist per-line taxes, such as E911, that are returned using line transactions. It is necessary to select one of the basic categories depending on the customer. These line transactions fall into one of the following the three categories. 1. Local / Lines (7/21) – Designates the number of lines a local service customer is using. This can be for either a residential or business customer who has a simple wire line connection into the premises. A F C T e l e c o m U s e r M a n u a l | 40 of 401 Copyright 2018 Avalara, Inc. 2. Local / High Capacity Trunk (7/45) – Designates the number of High Capacity Trunks a customer is using. High Capacity Trunks are usually defined as T1 or greater. (The taxable amount for the 7/21 and 7/45 transactions are irrelevant and must be populated with a zero dollar amount. Only the lines data should be populated with the total number of lines or high capacity trunks to be taxed.) 3. Business Customers with PBX or Centrex In some cases, a business customer may have a PBX or Centrex instead of one or two lines. This situation requires two transactions to be passed into the system in order to return the proper per line taxes. Some jurisdictions assess per-line taxes, such as E911, on the number of PBX or Centrex trunks used. Others assess per-line taxes on the number of PBX or Centrex DID Extensions. These taxes are usually assessed at a reduced rate. Still others assess taxes on both. (For example, they may assess the TRS on the trunk, but want an E911 for each extension.) a. Business Customers with PBX require these two transactions to handle taxation: Local / PBX Trunk (7/24) – Designates the number of PBX trunks a local service customer is using. The lines field of the 7/24 transactions should be populated with the number of PBX trunks to be taxed. Local / PBX Extensions (7/41) – Designates the number of PBX extensions a local service customer is using. The lines field of the 7/41 transactions should be populated with the number of PBX extensions to be taxed. (The taxable amount for the 7/24 and 7/41 transactions are irrelevant and must be populated with a zero dollar amount.) b. Business Customers with Centrex require these two transactions to handle taxation: Local / Centrex Trunk (7/42) – Designates the number of Centrex trunks a local service customer is using. The lines field of the 07/42 transactions should be populated with the number of Centrex trunks to be taxed. Local / Centrex DID Extensions (7/40) – Designates the number of Centrex extensions a local service customer is using. The lines field of the 7/40 transactions should be populated with the number of Centrex extensions to be taxed. (The taxable amount for the 7/42 and 7/40 transactions are irrelevant and must be populated with a zero dollar amount.) A F C T e l e c o m U s e r M a n u a l | 41 of 401 Copyright 2018 Avalara, Inc. Sales Transaction and Service Types The transaction type “Sales” and the service type “Product” is provided for the taxing the sale of finished goods. All of the sales tax rates for the various states, counties and localities in the United States are provided. The transaction type “Sales” and the service type “Use” is provided for taxing the use of products. All of the sales tax rates for the various states, counties and localities in the United States are provided. NOTE: At this time, AFC does not handle sales tax exceptions. If a transaction is supplied to AFC using this transaction and service type, sales taxes will be applied based upon the jurisdiction. If sales taxes do not apply to the specified transaction, it is the user’s responsibility to determine this and not pass the transaction to AFC. Refer to Table 2-8 or a list of combined transaction and service types that are associated with Sales. Table 2-8 Sales Transaction and Service Types Transaction Types 10 – Sales Service Types 15 – Product 31 – Use 32 – Debit 63 – Restocking Fee – Rental 64 – Restocking Fee – Purchase 65 – Partial Credit 103 – Sales Tax and FUSF 565 – Debit-Wireless 568 – Central Office Equipment – Sales 569 – Central Office Equipment – Use 643 – Debit-Wireless (Indirect NonCarrier Sale) Debit Transactions Debit transactions involve two transaction types; one at the time of sale as prepayment for the service, the other at the times of use following the purchase. The time of sale payment should be processed using the Sales/Debit (10/32) transaction. The transactions that follow the sale as the time on the card is expended will be either the Interstate Call (1/1) transaction or the Intrastate Call (2/1) transaction. When using API’s, the initial Sales/Debit transaction of the prepaid calling card would be processed through the normal API calls such as EZTaxPCodeEx. The Toll call transactions would be processed through the Debit API calls. A F C T e l e c o m U s e r M a n u a l | 42 of 401 Copyright 2018 Avalara, Inc. Shipping Transaction and Service Types Shipping Taxes are provided for the United States, its counties and localities. Refer to for a list Table 2-9 of combined transaction and service types that are associated with shipping taxes. Table 2-9 Shipping Transaction and Service Types Transaction Types 11 – Shipping Service Types 17 – FOB Origin 18 – FOB Destination Natural Gas Transaction and Service Types Refer to Table 2-10 for a list of combined transaction and service types that are associated with Natural Gas taxes. Table 2-10 Natural Gas Transaction and Service Types Transaction Types 12 – Natural gas Service Types 6 – Access Charge 19 – Consumption Telephony Transaction and Service Types Refer to the table below for combined transaction and service types that are associated with Telephony Services. Telephony Transaction and Service Types Transaction Types 15 – Telephony Service Types 7 – Service 624 – Wireless Service 627 – Internet Access 629 – Messaging Services Refer to the table below for a list of countries which should use the Telephony/Service T/S pair. Countries Using Telephony/Service Country ANTIGUA ARGENTINA AUSTRALIA AUSTRIA AZERBAIJAN BAHAMAS BAHRAIN ISO Code ATG ARG AUS AUT AZE BHS BHR A F C T e l e c o m U s e r M a n u a l | 43 of 401 Copyright 2018 Avalara, Inc. Countries Using Telephony/Service Country BARBADOS BELGIUM BELIZE BERMUDA BOLIVIA BOSNIA AND HERZEGOVINA BRAZIL BULGARIA CAMBODIA CANADA CHILE CHINA COLOMBIA COSTA RICA CROATIA CYPRUS CZECH REPUBLIC DENMARK DOMINICA DOMINICAN REPUBLIC ECUADOR EGYPT EL SALVADOR ESTONIA FIJI FINLAND FRANCE GERMANY GHANA GREECE GRENADA GUATEMALA GUYANA HONDURAS HUNGARY ICELAND INDIA INDONESIA IRELAND ISRAEL ITALY JAMAICA JAPAN KENYA KUWAIT LATVIA ISO Code BRB BEL BLZ BMU BOL BIH BRA BGR KHM CAN CHL CHN COL CRI HRV CYP CZE DNK DMA DOM ECU EGY SLV EST FJI FIN FRA DEU GHA GRC GRD GTM GUY HND HUN ISL IND IDN IRL ISR ITA JAM JPN KEN KWT LVA A F C T e l e c o m U s e r M a n u a l | 44 of 401 Copyright 2018 Avalara, Inc. Countries Using Telephony/Service Country LITHUANIA LUXEMBOURG MALAYSIA MAURITIUS MEXICO MOROCCO NAMIBIA NETHERLANDS NEW ZEALAND NICARAGUA NIGERIA NORWAY OMAN PANAMA PAPUA NEW GUINEA PERU PHILIPPINES POLAND PORTUGAL QATAR REPUBLIC OF MALTA REUNION ISLAND ROMANIA RUSSIA SAUDI ARABIA SERBIA SENEGAL SINGAPORE SLOVAK REPUBLIC SLOVENIA SOUTH AFRICA SOUTH KOREA SPAIN ST KITTS AND NEVIS ST VINCENT SWEDEN SWITZERLAND TAIWAN TANZANIA THAILAND TRINIDAD AND TOBAGO TURKEY UGANDA UKRAINE UNITED ARAB EMIRATES UNITED KINGDOM ISO Code LTU LUX MYS MUS MEX MAR NAM NLD NZL NIC NGA NOR OMN PAN PNG PER PHL POL PRT QAT MLT REU ROM RUS SAU SRB SEN SGP SVK SVN ZAF KOR ESP KNA VCT SWE CHE TWN TZA THA TTO TUR UGA UKR ARE GBR A F C T e l e c o m U s e r M a n u a l | 45 of 401 Copyright 2018 Avalara, Inc. Countries Using Telephony/Service Country UNITED STATES OFAMERICA URUGUAY VENEZUELA VIETNAM ZAMBIA ISO Code USA URY VEN VNM ZMB Cable Television Transaction and Service Types Refer to Table 2-11 for a list of combined transaction and service types that are associated with Cable Television. Table 2-11 Cable Television Transaction and Service Types Transaction Types 16 – Cable Television Service Types 6 – Access Charge 8 – Install 13 – Equipment Repair 14 – Late Charge 35 – Premium Service 36 – Pay Per View Service 37 – Equipment Rental 39 – TV Guide 584 – Digital Channel Tier 610 – Early Termination Fees 615 - Equipment Sales Satellite Television Transaction and Service Types Refer to Table 2-12 for a list of combined transaction and service types that are associated with Satellite Television. Table 2-12 Satellite Television Transaction and Service Types Transaction Types 18 – Satellite Television Service Types 6 – Access Charge 8 – Install 13 – Equipment Repair 14 – Late Charge 35 – Premium Service 36 – Pay Per View Service 37 – Equipment Rental 39 – TV Guide A F C T e l e c o m U s e r M a n u a l | 46 of 401 Copyright 2018 Avalara, Inc. Voice over Internet Protocol (VoIP) Transaction and Service Types Nomadic VoIP service (such as soft phone service) should be handled using the Nomadic VoIP transaction type. Fixed location VoIP service (such as a business PBX system) faces different taxation decisions from State, County and Local jurisdictions. Some jurisdictions have indicated that their taxes apply to VoIP, some have stated that they are not taxing VoIP and don’t plan to in the near future and others are taking a wait and see stance. Because of these jurisdiction inconsistencies, providers are forced to take different attitudes toward taxation. Some are taxing VoIP as they would normal POTS lines while others are taking the position that VoIP is not taxable as a telecom service. Avalara’s versatile taxation engine is designed to support both of these approaches with the transaction types VoIP and VoIPA. Refer to Table 2-6 and Figure 2-1. The VoIP transaction type returns telecom taxes in a jurisdiction that has stated that their taxes apply to VoIP and jurisdictions that are undecided. The VoIPA transaction type will only return telecom taxes in jurisdictions that have definitively stated their taxes apply to VoIP. These two approaches will converge as jurisdictions define how they want VoIP taxed. Table 2-13 VoIP Transaction Returns Jurisdictions who tax VoIP Undecided Jurisdictions Jurisdictions who don’t tax VoIP VoIP Tax Tax Don’t Tax VoIPA Tax Don’t Tax Don’t Tax Figure 2-1 VoIP Tax A F C T e l e c o m U s e r M a n u a l | 47 of 401 Copyright 2018 Avalara, Inc. E911 and other Per-Line Taxes Since VoIP users can connect via a landline or wireless connection and some jurisdictions have different rates for each of these, both rates are incorporated into the AFC system. Use the “Lines” service type to receive the landline rate and the “Wireless Lines” service type to receive the wireless rate. Application of any per-line taxes, such as State TRS or State USF, is dependent on whether the VoIP or VoIPA is used. The resulting four choices are: a. VoIP / Lines (19/21) – Returns landline E911 and per-line telecom taxes in jurisdictions that tax VoIP, and jurisdictions that are taking a wait and see approach. This combination will return only E911 at the landline rate in jurisdictions that have stated they are not taxing VoIP. b. VoIP / Wireless Lines (19/52) – Will return wireless E911 and per-line telecom taxes in jurisdictions that tax VoIP, and jurisdictions that are taking a wait and see approach. This combination will only return E911 at the wireless rate in jurisdictions that have stated they are not taxing VoIP. c. VoIPA / Lines (20/21) – Will return only landline E911 in jurisdictions that have stated they don’t tax VoIP, and in jurisdictions that are undecided. Will return telecom taxes and landline E911 in jurisdictions that tax VoIP. d. VoIPA / Wireless Lines (20/52) – Will return only wireless E911 in jurisdictions that have stated they don’t tax VoIP, and in jurisdictions that are undecided. Will return telecom taxes and wireless E911 in jurisdictions that tax VoIP. NOTE: The per-line taxes are returned as a “fixed” amount when using the Wireless Lines service type. When passing the Wireless Lines service type you do not need to enter the taxable amount or number of lines. You only need to pass one transaction for each line that needs to be taxed. VoIP Transaction and Service Types Refer to Table 2-14 for a list of combined transaction and service types that are used with VoIP transaction types. Table 2-14 VoIP Transaction and Service Types Transaction Types 19 – VoIP Service Types 6 – Access Charge A F C T e l e c o m U s e r M a n u a l | 48 of 401 Copyright 2018 Avalara, Inc. Table 2-14 VoIP Transaction and Service Types Transaction Types Service Types 8 – Install 11 – Activation 13 – Equipment Repair 14 – Late Charge 21 – Lines 30 – Feature Charge 37 – Equipment Rental 41 – PBX Extension 43 – Invoice 48 – Wireless Access Charge 49 – Interstate Usage 50 – Intrastate Usage 51 – International Usage 52 – Wireless Lines 53 – LNP 566 – PBX Outbound Channel 577 – Enhanced Features 578 – PBX 579 – PBX High Capacity 580 – High Capacity Extension 582 – High Capacity Outbound 596 – Access-Local Only Service 635 – Toll Free Number VoIPA Transaction and Service Types Refer to Table 2-15 for a list of combined transaction and service types that are used with VoIPA transaction types. Table 2-15 VoIPA Transaction and Service Types Transaction Types 20 – VoIPA Service Types 6 – Access Charge 8 – Install 11 – Activation 13 – Equipment Repair 14 – Late Charge 21 – Lines 30 – Feature Charge 37 – Equipment Rental 41 – PBX Extension 43 – Invoice 48 – Wireless Access Charge 49 – Interstate Usage 50 – Intrastate Usage 51 – International Usage 52 – Wireless Lines 53 – LNP 566 – PBX Outbound Channel A F C T e l e c o m U s e r M a n u a l | 49 of 401 Copyright 2018 Avalara, Inc. 577 – Enhanced Features 578 – PBX 579 – PBX High Capacity 580 – High Capacity Extension 582 – High Capacity Outbound Channel 596 – Access-Local Only Service 635 – Toll Free Number Nomadic VoIP Transaction and Service Types Refer to Table 2-16 for a list of combined transaction and service types that are used with Nomadic VoIP transaction types. Table 2-16 Nomadic VoIP Transaction and Service Types Transaction Types 59 – VoIP Nomadic Service Types 6 – Access Charge 8 – Install 11 – Activation 13 – Equipment Repair 14 – Late Charge 21 – Lines 30 – Feature Charge 37 – Equipment Rental 41 – PBX Extension 43 – Invoice 49 – Interstate Usage 50 – Intrastate Usage 51 – International Usage 53 – LNP 566 – PBX Outbound 577 – Enhanced Features 578 – PBX 579 – PBX High Capacity 580 – High Capacity 582 – High Capacity Outbound 635 – Toll Free Number Payphone Transaction and Service Types Refer to Table 2-17 for a list of combined transaction and service types that are used with Payphone transaction types. Table 2-17 Payphone Transaction and Service Types Transaction Types 21 – Payphone Service Types 21 – Lines 49 – Interstate Usage A F C T e l e c o m U s e r M a n u a l | 50 of 401 Copyright 2018 Avalara, Inc. 50 – Intrastate Usage 55 – Local Usage 56 – Provisioning Software Transaction and Service Types Refer to Table 2-18 for a list of combined transaction and service types that are used with Software transaction types. Table 2-18 Software Transaction and Service Types Transaction Types 24 – Software Service Types 59 – Licensed Software 60 – Software Maintenance 61 – Report on CD or Paper Form 595 – Downloaded licensed software Timesharing Transaction and Service Types Refer to Table 2-19 for a list of combined transaction and service types that are used with Timesharing transaction types. Table 2-19 Timesharing Transaction and Service Types Transaction Types 25 – Timesharing Service Types 62 – Information Retrieval Satellite Phone Transaction and Service Types Refer to Table 2-20 for a list of combined transaction and service types that are used with Satellite Phone transaction types. Table 2-20 Satellite Phone Transaction and Service Types Transaction Types 60 – Satellite Phone Service Types 10 – Usage VPN Transaction and Service Types Refer to Table 2-21 for a list of combined transaction and service types that are used with VPN transaction types. A F C T e l e c o m U s e r M a n u a l | 51 of 401 Copyright 2018 Avalara, Inc. Table 2-21 VPN Transaction and Service Types Transaction Types 61 – VPN Service Types 585 – Interstate MPLS 586 – Intrastate MPLS 650 – MPLS Instrastate Activation 651 – MPLS Install 652 – MPLS Service 653 – MPLS Interstate Activation Tax Categories Please reference the table below for a current list of Tax Categories. Tax Categories Category ID 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Name No Category Description Sales and Use Taxes Business Taxes Gross Receipts Taxes Excise Taxes Connectivity Charges Regulatory Charges E-911 Charges Utility User Taxes Right of Way Fees Communications Services Tax Cable Regulatory Fees Reserved Value Added Taxes Transactions AFC accepts transaction records from the user and returns calculated taxes. For AFC to return the correct taxation the information in the transaction records must be correct and in the format that AFC requires. Each Transaction contains the following information: 1. Customer Transaction Information A F C T e l e c o m U s e r M a n u a l | 52 of 401 Copyright 2018 Avalara, Inc. a. Customer Information b. Company Information c. Transaction Data 2. Taxing Jurisdiction Information The Customer Transaction Information has been divided into three sections as suggested above for the purpose of this discussion (see the table below). Table 3-1 Customer Transaction Information Customer Information Business Class County Exempt County Exemption JCode Customer Number (Primary Output Key) Customer Type Federal Exempt Federal Exemption JCode Incorp Invoice Number Lifeline Local Exempt Locality Exemption JCode Service Class Service Level Tax Type Exemptions State Exempt State Exemption JCode Tax Exempt Options Company Information Company Identifier Facilities Based Franchise Transaction Data Charge Lines Minutes Regulated/Unregulated Sale/Resale Service Type Transaction Bill Date Transaction Type Customer Information Refer to the table below. The following customer information is contained in fields found in the transaction record. Table 3-2 Customer Information Description Business Class Customer Number (Primary Output Key) Customer Type Federal Exempt State Exempt County Exempt Locality Exempt Incorp Valid Entry CLEC = 1, ILEC = 0 Customer number, user defined 0=residential, 1=business customer 2=Senior Citizen, 3=Industrial If TRUE, transaction exempt from Federal Tax If TRUE, transaction exempt from State Tax If TRUE, transaction exempt from County Tax If TRUE, transaction exempt from local tax TRUE indicates within incorporated area A F C T e l e c o m U s e r M a n u a l | 53 of 401 Copyright 2018 Avalara, Inc. Table 3-2 Customer Information Description Invoice Number Federal Exemption JCode State Exemption JCode County Exemption JCode Locality Exemption JCode Lifeline Service Class Service Level Number Tax Type Exemptions Tax Exempt Exempt Type *s_exempt Optional Fields: Optional Optional Alpha Optional 4 Optional 5 Optional 6 Optional 7 Optional 8 Optional 9 Optional 10 Valid Entry Invoice number (user defined) Jurisdiction for Federal exemption Jurisdiction for state exemption Jurisdiction for County exemption Jurisdiction for local exemption Lifeline = TRUE, Non-lifeline = FALSE Primary Long Distance = 1, Local Service = 0, (Default Long Distance) Service level number (user defined) 0 indicates no of special exempts, other value indicates number of special exempts Pointer to tax exempt structure that contains the number of specific tax exemptions specified in tax type exemptions Reason for exemption User defined value for reporting Optional alpha field Optional Numeric field Optional Numeric field Optional Numeric field Optional Numeric field Optional Numeric field Optional Numeric field Optional Numeric field Business Class Indicator The Business Class Indicator field is used to specify if the business making the transaction is an Incumbent Local Exchange Company (ILEC) or a Competitive Local Exchange Company (CLEC). This designation applies to the Customer. • • An ILEC company is engaged in selling services over company owned lines and equipment, A CLEC company is engaged in selling services competing with an incumbent provider. This setting can also be considered as, “You are ILEC” or, “You are not ILEC.” If neither class applies, use the default value CLEC. The business class only impacts Telecom transactions in certain jurisdictions, such as Oregon. Business Class ID 0 1 Value ILEC CLEC (Default) Description Customer is an ILEC company. Customer is not an ILEC company. A F C T e l e c o m U s e r M a n u a l | 54 of 401 Copyright 2018 Avalara, Inc. Customer Number (Primary Output Key) The Customer Number is a 20-character null terminated string field stored in the tax log and used as the Primary Output Key for all of the AFC billing reports. Customer Type This field is used to specify the type of customer involved in the transaction. The customer type is selected from one of the following four Customer Types. Customer Type ID 0 1 2 Value Residential Business Senior Citizen 3 Industrial Description When transactions are made by a customer for home use. When transactions are made at a place of business When transactions are made by a customer who meets the jurisdiction requirements to be considered a senior citizen and qualify for senior citizen tax breaks. When transactions are made at an industrial business. Exemption Levels The exemption level is the jurisdictional level of the taxing authority that defines the tax. It is used to exempt taxes at specific federal, state, county and/or local taxes. Federal Exempt The Federal Exempt field is used to specify a Federal level tax exemption. Note: Most Federal taxes are only exempted when selling to a reseller who is registered, reporting, and remitting to the regulating agency. For this reason, a wholesale exemption or a tax type exemption must be used to exempt taxes at the Federal level. State Exempt The State Exempt field is used to specify a State level tax exemption. County Exempt The County Exempt field is used to specify a County level tax exemption. Local Exempt The Local Exempt field is used to specify a Local level tax exemption. Incorp The Incorp field is used to specify whether the customer involved in this transaction is inside or outside of the Local level designated as their location. The tax may or may not be affected by this designator A F C T e l e c o m U s e r M a n u a l | 55 of 401 Copyright 2018 Avalara, Inc. depending upon whether or not the local level has taxes which would apply to the transaction/service type pair. Invoice Number The Invoice Number is an optional field used to aid users in uniquely identifying a billing record for a specific customer within their system. JCode Exemption Levels The exemption JCode is the JCode associated with the jurisdictional level of the taxing authority that defines the tax. It is used to exempt all federal, state, county and / or local taxes. If the exemption JCode fields are not specified then all taxes are exempt at that level. To pass an individual tax exemption using the JCode Exemption, use the Tax Exempt structure to specify the tax type, tax level and the JCode for the jurisdiction. Refer to Section 4.1.1.2. NOTE: JCodes are an internal intermediate Jurisdiction Code that can change monthly. The JCode can be obtained from a PCode or an address using like functions. Federal Exemption JCode The Federal Exemption JCode field identifies the JCode of the jurisdiction (i.e. country) for a federal exemption. State Exemption JCode The State Exemption JCode field identifies the JCode of the jurisdiction for a state exemption. County Exemption JCode The County Exemption JCode field identifies the JCode of the jurisdiction for a county exemption. Locality Exemption JCode The Locality Exemption JCode field identifies the JCode of the jurisdiction for a locality exemption. A F C T e l e c o m U s e r M a n u a l | 56 of 401 Copyright 2018 Avalara, Inc. Lifeline Flag The Lifeline Flag is used to indicate if a customer is a Lifeline participant. Service Class Indicator The Service Class Indicator is provided to delineate the Primary activity of an organization as either Long Distance or Local Service. • • Primary Long Distance providers are carriers vending their services with over 50% of the gross business activities in Long Distance revenue. Primary Local Service providers are carriers vending their services with over 50% of the gross business activities in Local Service revenue. NOTE: This has no effect on non-Telecom Transactions Service Level Number The Service Level Number is an optional field, commonly populated with the transaction type and service type. This information is stored in the tax log. Some AFC reporting utilities use this field when sorting information and/or creating reports. Tax Type Exemptions Two fields are provided for entering the quantity of tax type exemptions and the pointers to the tax exemption structures. Tax Type Exemptions Field The Tax Type Exemption indicator specifies the number of tax type exemptions that are included. These are tax type and transaction specific exemptions. Tax Type Exemption Pointer Tax type exemption(s) are specified with a pointer to one or more tax exempt structures. The user should supply a pointer to the first Tax Type Exemption and all exemptions must be contained in a contiguous block of memory. A F C T e l e c o m U s e r M a n u a l | 57 of 401 Copyright 2018 Avalara, Inc. Optional Fields Optional Fields are provided to allow clients to enhance reporting and billing utilities with information beyond the scope of that which is generated to support AFC activities. The Primary Output Key (POK) is a 20-character text field that is not manipulated during processing and stored as part of the log file record. It can be used as part of the sorting key (see Figure 3-1) when using some utilities, allowing for the combining of records based upon this and other fields. It is useful when it is desired to have like taxes from different transactions combined, to have taxes from each transaction detailed individually in a report or to have each transaction detailed at the customer level. Figure 3-1 Primary Output Key Uniquekey.csf Combined taxes If you would want like taxes combined at the customer level, then you specify a like Primary Output Key for the records you want combined. A F C T e l e c o m U s e r M a n u a l | 58 of 401 Copyright 2018 Avalara, Inc. Samekey.csf A F C T e l e c o m U s e r M a n u a l | 59 of 401 Copyright 2018 Avalara, Inc. Company Information Refer to Table 3-3. The following company information is contained in fields found in the transaction record. Table 3-3 Company Information Description Company Identifier Facilities Based Franchise Regulated/Unregulated Valid Entry Company Identifier, optional Facilities Based (default) = TRUE, Non-Facilities Based = FALSE. Franchise (default) = TRUE, Non-Franchise = FALSE. TRUE = Regulated (default) = TRUE, Unregulated = FALSE. Company Identifier The Company Identifier field is an optional field made available for alpha information, such as the name of a subsidiary company. This information is passed thru to the tax log so that reporting utilities can sort or summarize by this field. Facilities Based Flag The Facilities Based flag specifies whether the transaction is sold over tangible facilities controlled by the seller. If the seller delivering the service owns or controls the facilities used to provide the service, then the seller is facilities based. If the seller does not own or control the facilities, the seller is non-facilities based. In some jurisdictions, tax outcomes will vary depending on whether the service is delivered over infrastructure controlled by the seller. Franchise Flag The Franchise flag indicates that the company provides services sold pursuant to a franchise agreement between the carrier and jurisdiction. Regulated / Unregulated Flag The Regulated / Unregulated flag is used to specify if the Telecommunications company and its services are regulated by the regulatory commission in the state of the service. A F C T e l e c o m U s e r M a n u a l | 60 of 401 Copyright 2018 Avalara, Inc. Transaction Data Refer to Table 3-4. The following transaction information is contained in fields found in the transaction record. Table 3-4 Transaction Data Information Description Charge Date Lines Minutes Sale/Resale Service Type Transaction Type Valid Entry amount charged to customer for transaction Transaction bill date. This field is provided to allow rating and taxing to occur on a date other than the billing date. number of lines (use with transaction type LOCAL and service type LINES) Minutes of call, defaults to zero when not appropriate (NOTE: some taxes are per minute.) TRUE = Sale, FALSE = Resale Refer to Table 2-1 for valid Transaction / Service Type entries Refer to Table 2-1 for valid Transaction / Service Type entries Charge The Charge field specifies the amount of the transaction to be taxed. This amount will be passed through AFC to rate the tax based on the specified transaction/service pair. Date The Date field is normally populated with the bill date. Generally accepted accounting principles dictate that liabilities should be recorded when revenues are recorded. In most cases, neither of these is recorded (or even known) until billing occurs. However, companies with a high call volume that record revenue daily as it occurs should record the tax on the same basis (i.e. the call date should be used). AFC compares this date to the effective date of each tax that applies to the transaction. Historical rates and effective dates are maintained and updated within the AFC Engine and AFC will return the correct tax information based upon the transaction date. The monthly updates assure that the rates and effective dates are current. WARNING: All transaction data Date fields must be formatted as CCYYMMDD. Failure to do so will cause incorrect results when the transaction is processed. A F C T e l e c o m U s e r M a n u a l | 61 of 401 Copyright 2018 Avalara, Inc. Lines When local service is provided, a transaction should be generated with the Lines field populated with the number of lines the customer subscribes to. AFC uses this information for generation of per line taxes usually associated with local E911 charges and local telecommunications relay service taxes and other assorted taxes. Minutes The Minutes Field specifies the length of phone call in minutes, with one tenth of a minute precision capability. AFC uses this field for generation of taxes that are specified as per minute flat fees in some taxing jurisdictions and stores the value in the AFC log database. Sale Type The Sale Type specifies the whether the transaction is a retail transaction or a wholesale transaction. • • Resale should be used for wholesale transactions. Telecommunication companies are taxed on transactions made by their clients, which in some cases can be passed on or “resold” to their customers in part or in total. Resale is used to indicate whether the product or service transaction is final or if it is to be resold. The type Sale should be used for retail transactions. To have exempt taxes available for reporting, exemption type 3 (Sales For Resale) should be used in combination with Resale. Sale Type ID 0 1 Value Resale Sale (Default) Description Only Resale/Wholesale taxes apply Standard taxes apply Service Type Refer to Transaction and Service Types for details of this field. Transaction Type Refer to Transaction and Service Types for details of this field. A F C T e l e c o m U s e r M a n u a l | 62 of 401 Copyright 2018 Avalara, Inc. Taxing Jurisdiction Identification Information The tax jurisdiction that can claim nexus for the transaction must be obtained in order for the proper taxes to be applied. Assigning the correct jurisdiction to the transaction is crucial in obtaining and returning the correct tax to the billing system. Jurisdiction information can be supplied to the AFC Engine in several ways. It can be supplied using a Jurisdiction Code (JCode), Permanent (location) Code (PCode), NPANXXs, Zip Code with city, and state information or FIPS Codes. The JCode Jurisdiction Identification Avalara has assigned each jurisdiction with a proprietary “JCode” (Jurisdiction Code) that identifies its specific territorial boundaries. A jurisdiction fairly claiming nexus on a transaction within this boundary will apply taxes accordingly. The AFC Engine uses this “jurisdiction bound” JCode to associate the jurisdiction specific taxes to the transaction as it is processed. However, any alterations in the jurisdictional boundaries, such as an expansion of a city limit, will be reflected in the JCode of locations that are situated within the expanded jurisdiction area. The Avalara tax research staff monitors jurisdiction taxation activity to maintain current and accurate taxation information. The results of this research is applied to the Monthly updates which are provided to ensure the most accurate taxation is applied to the records processed by the AFC Engine. The JCodes will be changed at this time. It is the user’s responsibility to re-populate their database tables with the new JCodes every time an AFC update is provided. If this task is not performed, the AFC Engine will return incorrect tax calculations for jurisdictions that have been updated. However, when a transaction is submitted with the stable and location sensitive PCode, the AFC Engine can use internal functions to obtain the correct jurisdiction. Since the AFC Engine is updated with the remapped jurisdiction information monthly, tax calculations are always performed with the most current jurisdiction taxation information that applies to the address defined by the PCode. A F C T e l e c o m U s e r M a n u a l | 63 of 401 Copyright 2018 Avalara, Inc. Figure 3-2 JCode and PCode Changes During Annexation MOM'S HOUSE PCODE = 8 JCODE = 2000 MY HOUSE PCODE = 7 JCODE = 1000 MY TOWN CITY LIMIT JCode and PCode Prior to Annexation MY HOUSE PCODE = 8 JCODE = 2000 MOM'S HOUSE PCODE = 8 JCODE = 2000 MY TOWN CITY LIMIT JCode and PCode After Annexation All that is required to make use of this recommended option is to cross reference or “map” the customer locations with its correct PCode (see Section 3.4.1.1) time invested in incorporating PCodes into your database records will be quickly offset by the reduced processing time and the increased accuracy and reliability of your tax reporting will be evident. Mapping Customer Locations to PCodes Avalara markets Avalara Geo for Communications to assist in mapping customer locations to PCodes when populating the client customer database. It quickly obtains the current PCode for a specific geographical location. When performing this task without the aid of EZgeo®, refer to the all_adr.txt file to look up the PCode that should be used to populate the client database with customer information. This comma delimited ASCII file is supplied for use during AFC setup and when adding new customers to the client database. The file is replaced with a current version when monthly updates are performed (refer to Section 8.6). all_adr.txt is a comma-delimited text file that contains a cross reference of PCodes to taxing jurisdictions. The format is PCode, Primary / Alternate Location, Country, State, County, Locality, Beginning ZIP Code, Ending ZIP Code. These fields are self-explanatory with the exception of the Primary / Alternate Location (refer to 3.4.1.1). Primary/Alternate Location The Primary / Alternate location flag is set to '0' to indicate that the location associated with the PCode is a "Primary" location or '1' to indicate that it is an "Alternate" location. Secondary locations are original city names that remain in use even though the areas within them have since been divided and given different names. For example, the city of Overland Park, KS is a primary location. The first post office to serve the area was established at the Shawnee Methodist Mission in the early nineteenth century, the extents of which A F C T e l e c o m U s e r M a n u a l | 64 of 401 Copyright 2018 Avalara, Inc. encompassed the then non-existent city of Overland Park as well as nearly a dozen other cities (primary locations) which appeared over time. The post office still recognizes the Shawnee Methodist Mission area as Shawnee Mission, KS, and continues to deliver to a primary location when the “Alternate Location” address is provided. Data Entry Modification Procedure Use the following procedure to acquire the correct information to enter. 1. Have the customer data entry software first request the NPANXX of the customer from the data entry associate. 2. Have the customer data entry software request the zip code of the customer from the data entry associate. 3. Query the NPANXX7 file and the "all_adr" file/database to obtain the associated PCodes. 4. If matching PCodes are found, populate the customer data record with the associated address from the "all_adr" file and request verification from the customer data entry associate. 5. If the PCodes do not match or if the customer data entry associate rejects the automated selection, display all addresses associated with both PCodes and the zip code entered. 6. Allow the customer data entry associate to select the appropriate address from the list. 7. In the unlikely event that the customer address is not displayed, allow the customer data entry person to enter the address supplied by the customer. Store the address with a "special key" as instructed by Avalara Return the address and key to Avalara via E-mail. Avalara will research the missing address and include it in the next monthly update. Avalara will also provide you with a cross reference of the "special key" and the correct "PCode" to allow the customer record to be properly installed. NOTE: Avalara subscribes to the United States Postal Database which should preclude this event. Nonetheless, it does occur on occasion and this process has been established for that reason. Use the PCode from the customer record for the service address when interfacing with AFC. Resources such as the USPS or the U.S. Census Department web sites can also be helpful in pinpointing a customer location. AFC functions can also be used to obtain PCodes (see Section 7.8 API Listings). For detailed information about determining the tax jurisdiction which can claim nexus on a transaction, refer to Section 3.5. A F C T e l e c o m U s e r M a n u a l | 65 of 401 Copyright 2018 Avalara, Inc. NPANXX NPANXX input is nearly as accurate as the JCode method and performance differences are virtually undetectable. Using this method, the jurisdiction is determined by the three elements of a transaction; the origination, termination and bill-to. However, there are potential problems associated with using the NPANXX. 1. The first six digits of a toll free 800 or 888 number do not constitute an NPANXX. Rather, these numbers are associated with a “ring to” number which is the number that is actually reached when the 800/888 number is dialed. The NPANXX of the “ring to” number should be used as the NPANXX for the 800 number. This replacement must be made before the information is passed to the AFC system. 2. Switches are capable of producing CDRs with account codes in place of a “Bill To” number, which is not related to an actual NPANXX. The user is required to convert this number to the actual NPANXX using data from the billing system before interfacing with AFC. NPANXXs exist for the U.S., Barbados, Canada, Guam, Mexico, Northern Mariana Islands, Puerto Rico, Trinidad & Tobago and the US Virgin Islands. These countries are on the North American dialing plan. Use of NPANXX for determination of a taxing jurisdiction is not sufficient for local service. There are too many foreign exchanges that will incorrectly map customers to the wrong local tax jurisdiction resulting in the wrong local taxes to be applied and unwanted calls to your customer service department. Zip Codes This method of providing jurisdiction information is the least efficient method provided. When using the ZIP Code and address information, AFC cannot determine the jurisdiction for a telecommunication transaction since information regarding the origination and termination numbers is not provided. A record submitted using this method will compromise the accuracy of correct jurisdiction identification, the degree of which would depend upon the amount of data provided for the address and the user’s ability to select the correct taxing jurisdiction zip code and address. AFC databases necessarily contain numerous duplicate zip codes that cross taxing jurisdiction and locality boundaries. Providing a complete address with zip code will provide the best possible match. If the address information is not provided, AFC will return taxes based upon the first match of the input record information. If the jurisdiction is positively identified by the billing system it would be appropriate to use the zip code for transactions. For instance, this would apply if the transaction is the sale of a product at a business that has just one location or in the case of internet usage from a residence. A F C T e l e c o m U s e r M a n u a l | 66 of 401 Copyright 2018 Avalara, Inc. AFC currently has Zip Code information for U.S. and Canadian jurisdictions. Use the Zip Code Plus 4 Interface to use the 6 character Canadian postal codes. Zip Plus 4 Just as with the Zip Code method (see Section 3.4.3), AFC cannot determine the jurisdiction for a telecommunication transaction since information regarding the origination and termination numbers is not provided. However, it is useful (and more accurate than the 5-digit zip code) because this 9-digit zip code uniquely identifies a location, which can then be used to determine the tax jurisdiction. There is no need to supply the additional city and county information and information in these fields are ignored. NOTE: Supplying ZIP Code Plus 4 information where the plus 4 is all zeros will function like the ZIP Code Interface since the United States Postal Service has no valid plus 4 code assigned with all zeros. The default will retrieve the first jurisdiction with the supplied 5-digit zip code. Canadian Postal Codes Canadian postal codes need to be specified using the ZIP Plus 4 to retrieve a tax jurisdiction code. Place the first three characters go in the zip code field and the last three characters go in the plus 4 field. In addition, the country ISO field must be set to the Canadian ISO Code. FIPS Codes AFC has functions allowing the use of FIPS codes to retrieve tax jurisdiction codes. The US Census Bureau provides the following description of the FIPS Codes and associated reference tables. “The Federal Information Processing Standards codes (FIPS codes) are a standardized set of numeric or alphabetic codes issued by the National Institute of Standards and Technology (NIST) to ensure uniform identification of geographic entities through all federal government agencies. The entities covered include: states and statistically equivalent entities, counties and statistically equivalent entities, named populated and related location entities (such as, places and county subdivisions), and American Indian and Alaska Native areas”. A FIPS Code is a 10-digit numeric code with the following format: Table 3-5 FIPS CODE FORMAT SS CCC SSCCCPPPPP FIPS State Code FIPS County Code A F C T e l e c o m U s e r M a n u a l | 67 of 401 Copyright 2018 Avalara, Inc. Table 3-5 FIPS CODE FORMAT PPPPP FIPS Place Code Figure 3-3 FIPS State Codes for the States and the District of Columbia Name Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri FIPS State Numeric Code 1 2 4 5 6 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 FIPS State Alpha Code AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO Name Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming FIPS State Numeric Code 30 31 32 33 34 35 36 37 38 39 40 41 42 44 45 46 47 48 49 50 51 53 54 55 56 FIPS State Alpha Code MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY Figure 3-4 FIPS State Codes for the Outlying Areas of the United States, the Freely Associated States and Trust Territory FIPS State Numeric Code 60 FIPS State Alpha Code AS Federated States of Micronesia 64 FM 3 Guam 66 GU 1 Marshall Islands 68 MH 3 Northern Mariana Islands 69 MP 1 Palau 70 PW 4 Puerto Rico 72 PR 1 Virgin Islands of the U.S. 78 VI 1 Area Name American Samoa Status 1 A F C T e l e c o m U s e r M a n u a l | 68 of 401 Copyright 2018 Avalara, Inc. Support for India Processing tax calculations in the the country of India includes support for all the states. Please reference the table below for the appropriate IDs, abbreviations and PCodes for each state. States in India Ctry Code ISO State Id Abbv State PCODE 356 IND 1 AP Andhra Pradesh 5148401 356 IND 2 AR Arunachal Pradesh 5148402 356 IND 3 AS Assam 5148403 356 IND 4 BR Bihar 5148404 356 IND 5 CT Chhattisgarh 5148405 356 IND 6 GA Goa 5148406 356 IND 7 GJ Gujarat 5148407 356 IND 8 HR Haryana 5148408 356 IND 9 HP Himachal Pradesh 5148409 356 IND 10 JK Jammu and Kashmir 5148410 356 IND 11 JH Jharkhand 5148411 356 IND 12 KA Karnataka 5148412 356 IND 13 KL Kerala 5148413 356 IND 14 MP Madhya Pradesh 5148414 356 IND 15 MH Maharashtra 5148415 356 IND 16 MN Manipur 5148416 356 IND 17 ML Meghalaya 5148417 356 IND 18 MZ Mizoram 5148418 356 IND 19 NL Nagaland 5148419 356 IND 20 OR Odisha 5148420 356 IND 21 PB Punjab 5148421 356 IND 22 RJ Rajasthan 5148422 A F C T e l e c o m U s e r M a n u a l | 69 of 401 Copyright 2018 Avalara, Inc. States in India Ctry Code ISO State Id Abbv State PCODE 356 IND 23 SK Sikkim 5148423 356 IND 24 TN Tamil Nadu 5148424 356 IND 25 TG Telangana 5148425 356 IND 26 TR Tripura 5148426 356 IND 27 UP Uttar Pradesh 5148427 356 IND 28 UT Uttarakhand 5148428 356 IND 29 WB West Bengal 5148429 356 IND 30 AN Andaman and Nicobar 5148430 356 IND 31 CH Chandigarh 5148431 356 IND 32 DN Dadra Nagar Haveli 5148432 356 IND 33 DD Daman and Diu 5148433 356 IND 34 DL Delhi 5148434 356 IND 35 LD Lakshadweep 5148435 356 IND 36 PY Puducherry 5148436 Jurisdiction Identification Details Obtaining the correct user’s location is critical in calculating the local taxation. Determining the Taxing Jurisdiction for Wireline AFC applies taxes to transactions based on the statutes that dictate specific taxes per jurisdiction. The AFC engine contains current taxing information for jurisdictions, but for AFC to calculate taxes for long distance telecommunication calls correctly it must determine the taxing jurisdiction for the transaction based on the following: • Origination Jurisdiction – The Origination location of the transaction to be taxed. For telecom activity, this is usually specified by the number called from, also known as the “From Number” or “Origination number. A F C T e l e c o m U s e r M a n u a l | 70 of 401 Copyright 2018 Avalara, Inc. • Termination – The Termination location of the transaction to be taxed. For telecom activity, this is usually specified by the number called, also known as the "To Number" or the "Termination number." • Service Address – The Service Address of the transaction to be taxed. For telecom activity, this is usually specified by the service location; also known as the Bill To Number or BTN. Each jurisdiction from the state level down to the local level establishes jurisdiction rules to determine if their tax will apply to a specific call transaction. These jurisdiction rules (also known as sourcing rules) for determining the correct jurisdiction arose from a United States Supreme Court ruling that established the minimum requirements necessary for a taxing jurisdiction to claim “nexus” and validly tax a particular wireline long distance telecommunication transaction. Known as the Goldberg Rule, or the “2 out of 3 Rule,” the ruling requires that two out of the three sourcing elements (origination, termination, and service address) must take place in a particular jurisdiction in order for that jurisdiction to tax the transaction. Figure 3-6 provides two examples to illustrate this principle. Figure 3-5 Correct Jurisdiction Transaction Taxation applying Goldberg Rule A F C T e l e c o m U s e r M a n u a l | 71 of 401 Copyright 2018 Avalara, Inc. The first example is a call that originates in Oregon, terminates in California and has a service address (BTN) in Oregon. Since “2 out of 3” sourcing elements take place in Oregon, Oregon may tax this transaction. The second example is a call that originates in New Mexico, terminates in Texas and has a service address (BTN) in Kansas. Since no state has more than 1 out of the 3 sourcing elements, the transaction is not taxable by any state. The “Goldberg Rule” or “2 out of 3” is the minimum standard. Many jurisdictions apply rules that apply stricter nexus requirements. For example, a jurisdiction might require that a transaction both originate and be billed in that jurisdiction in order to be taxed. This is a stricter requirement since the jurisdiction has eliminated one of the elements as a possibility. Fewer transactions will be taxable by this rule than by the straight “Goldberg Rule”. No jurisdiction may impose a rule that will result in more transactions being taxable than the “Goldberg Rule”. Incorrect Jurisdiction Assignment A customer may be assigned an incorrect jurisdiction if the geographical information is not thoroughly researched. In the example shown in Figure 3-7, the customer (marked by an X) resides in a rural area located in Pawnee County, Nebraska, just outside the city limits of Summerfield, Kansas. Figure 3-6 Geographical Anomaly A F C T e l e c o m U s e r M a n u a l | 72 of 401 Copyright 2018 Avalara, Inc. However, in all likelihood this customer’s phone line is served by a switch in Summerfield, Kansas and will therefore have a Summerfield, Kansas NPANXX. It is also likely that the customer’s mail service is provided by the Summerfield, Kansas Post Office and therefore has a Summerfield, Kansas mailing address. This geographical anomaly will cause an incorrect assessment of taxation if not researched properly. If the AFC user enters the customers NPANXX and Service Address information into the transaction records, the customer will be incorrectly assessed taxes according to those of the Summerfield, Kansas jurisdiction instead of those for the unincorporated area of Pawnee County, Nebraska jurisdiction. Tax Situsing Although the jurisdiction is determined by the “2 out of 3 rule” for the majority of long distance telecommunications taxes, it is only one of 10 rules specified for jurisdiction determination by taxing jurisdictions in the United States. 1. Tax based on 2 out of 3 Rule – Apply tax where 2 out 3 jurisdictions are equal. This is usually the default option. 2. Tax based upon Billing – Apply tax based on the billing location. 3. Tax based upon Origination – Apply tax based on the Origination of the call location. 4. Tax based upon Termination – Apply tax based on the Termination of the call location. 5. Tax if (Bill=Orig) – Apply tax only if billing jurisdiction and origination jurisdiction is equal. 6. Tax if (Bill=Orig=Term) – Apply tax only if all three jurisdictions are equal. A F C T e l e c o m U s e r M a n u a l | 73 of 401 Copyright 2018 Avalara, Inc. 7. Tax if (Bill=Tax Jurisdiction) – Apply tax if billing jurisdiction equals origination or termination jurisdictions. 8. Tax if (Bill=Term) – Apply tax only if billing jurisdiction and termination jurisdiction is equal. 9. Tax if (Orig=Tax Jurisdiction) – Apply tax if origination jurisdiction equals billing or termination jurisdictions. 10. Tax if (Term=Tax Jurisdiction) – Apply tax if termination jurisdiction equals billing or origination jurisdictions. Determining the Taxing Jurisdiction for Cellular For cellular transactions, the service address (BTN) is used to determine the jurisdiction. Cellular services by their inherent nature are nomadic, making the origination point of a phone call transient and prone to difficulty in tracking. In an effort to resolve this uncertainty, Congress passed the Mobile Telecommunications Sourcing Act (MTSA). The MTSA is a federal law which requires all state and local taxes to adopt language sourcing cellular services to the customer’s “place of primary use” (PPU) or the location where the customer predominately uses their cell phone. The federal statute allows the seller to presume that the place of primary use is the customer’s billing address until the customer notifies them that this is not the case. Determining the Taxing Jurisdiction for VoIP VoIP services may be utilized on a nomadic basis with difficulties in determining the originating location at the time of the call. Unfortunately, Congress has not passed a Primary Place of Use (PPU) statute for VoIP; however, the same guidelines outlined in the Mobile Telecommunications Sourcing Act (MTSA) are the generally followed industry practice. The seller is allowed to presume the PPU based on the customer’s billing address until the customer notifies them that this is not the case. Determining the Taxing Jurisdiction within Canada Sourcing telecommunication taxes in Canada differs in that determining the “place of supply” must be clearly identified through application of the following rules: 1. A supply of a telecommunication service, which produces the availability of telecommunications facilities, (other than a service of granting sole access to a telecommunications channel) is made in a province if: • • all of the facilities are ordinarily located in that province; or where not all of the facilities are ordinarily located in the province, the invoice for the supply is sent to an address in that province. A F C T e l e c o m U s e r M a n u a l | 74 of 401 Copyright 2018 Avalara, Inc. 2. For other types of supplies of telecommunication services (other than a service of granting sole access to a telecommunications channel), the supply is made in a province if the telecommunication: • • • is both emitted (originating) and received (terminating) in that province; is either emitted (originating) or received (terminating) in that province and the billing location for the service is located in that province; or is emitted (originating) in the province and received (terminating) outside the province and the billing location for the service is not in a province where the telecommunication is emitted or received. AFC Calculations The AFC Engine accepts the transaction record, processes the information provided and creates a table containing the generated tax information. Additional methods to process specialized taxes are available through the use of AFC functions. Meeting the Requirements of Specific Tax Issues Many tax issues are resolved within the AFC Engine, thereby relieving the user from making changes to account for them. Additional functions are provided to meet other special taxation issues. Table 4-1 Specific Tax Issues Category Specific Tax Exemptions Tax Adjustments Tax Overrides Tax Rate Brackets Rate at Final Discount Adjustment Tier on Transaction Tax on Tax Until no Effect Taxed Taxes Get Rates Description Specifies tax type at specific tax level for exemption Allow for adjustment activities such as refunds, changing a customer’s bill or when terminating un-collectable accounts. Allows for a change of a tax rate. Tax rate that changes as the taxable amount of the transaction increases. A specialized case of tax brackets. Allows for entry of different discount adjustment types. Allows for tax to be determined using graduated tax brackets. Option to control calculation of tax on tax Allows for processing when one tax includes in its base the tax calculated from another tax. Retrieves current tax information in a form suitable for overrides. A F C T e l e c o m U s e r M a n u a l | 75 of 401 Copyright 2018 Avalara, Inc. Tax Type Exemptions Tax Type Exemptions are used to specify a specific Tax Type at a specific Tax Level to be exempted for the current transaction. The exemption jurisdiction code specifies the jurisdiction for the tax exemption. If the jurisdiction code is not specified (i.e. set to zero), then all taxes of the Tax Type and Tax Level specified are considered exempt regardless of the jurisdiction they are calculated for. Typically the JCode should be specified as specific tax exemptions are normally only effective for specific jurisdictions. Another option allows the tax type to be set to zero, to indicate that all taxes of a specific tax level are exempt in the specific jurisdiction. Declaring Tax Type Exemptions within a Transaction Record When setting up the AFC transaction record, there are fields that specify either exempt at a tax level or a specific tax. For more information, reference Sections 3.1.4 for exemption levels, 3.1.7 for Jcode exemption levels and 3.1.10 for tax type exemption levels. Declaring Tax Type Exemptions Using Functions Alternatively, Tax Type Exemptions can be applied using functions (such as APIs). The following fields are required for this. Table 4-2 Tax Exempt Record Tax Type Tax Level JCode for Exemption Tax Type identifier Tax Level identifier Jurisdiction for exemption In addition, the transaction contains a pointer set to the tax exempt to exempt a specific tax. Table 4-3 Tax Exemption Fields tax_exempt *s_exempt Identifies the number of exemption records Pointer to the Tax Exempt record (see Table 2-4) or Array of Tax Exempt records. If no records are setup, this value should be null. General Tips When Declaring Tax Exemptions 1. The JCode is used to specify tax exemptions because exemptions are normally only effective for specific jurisdictions. 2. Federal taxes cannot be exempted using a level exemption, but can be exempted using specific exemptions. Some taxes, such as the Federal USF tax, are non-exemptible using level exemptions. These non-exemptible federal taxes may also be overridden to exempt them. Refer to Section 4.1.3 for more information on Tax Overrides. 3. It is easy to evaluate the exemptions passed through AFC because they are tracked separately and stored in the tax log by type of exemption. A F C T e l e c o m U s e r M a n u a l | 76 of 401 Copyright 2018 Avalara, Inc. Tax Adjustments Tax adjustment functions provide for adjustment activities such as refunds, changing a customer’s bill or writing off un-collectable accounts. The AFC engine allows adjustments to be passed by the user. Note that these adjustments must be accounted for to provide an audit trail. Tax adjustments are made using the Adjustment functions. The tax amount entered should be a positive number for credit adjustments as the adjustment functions will appropriately sign the charges, lines or locations for computation purposes. The adjustments are logged in the EZTax.log along with the rest of the tax and transaction data associated with the tax run. The information is returned to the billing system and is utilized to update tax data for report generation and compliance filing. Adjustments may be declared as ‘default’ in which case they are processed exactly like a similar charge transaction with negative tax results. They may be declared as least or most favorable. This declaration is only useful for taxes which have multiple tiers or brackets and should be used with caution. The rate will be determined separately for each tax returned within the tax table. AFC software will search the tiers or brackets and select the tier which has either the highest rate (for most favorable) or lowest rate (for least favorable) and apply that rate to the number of lines or charge amount as appropriate. General Tips When Making Tax Adjustments 1. To calculate adjustments accurately, AFC requires the following activity: a. Call AFC using an adjustment API. (Please refer to the APIs provided in Section 7.8 API Listings). b. Send positive values for change and lines. c. Set the adjustment method (see the Adjustment Method Table below). d. Set the discount type (see the Discount Type Table in Section 4.1.7). 2. If logging is turned on, adjustments are stored in the eztax.log file with the other transactions. Adjustment Method Table Name Default LeastFavorableRate MostFavorableRate Description Tax brackets applied normally. Tax brackets applied to produce smallest tax refund. Tax brackets applied to produce largest tax refund. Line Based Adjustments Normal adjustments are managed with the processes outlined thoughout this section; however, there are exceptions to this process when managing line based adjustments in Invoice Mode. When adjustments are made in Invoice Mode with line based transactions, AFC will use the rate for the total number of lines within the adjustment(s). The system will not make any assumptions regarding the purchase rate of the original lines. Therefore, the rate charged will reflect the total number of lines received. (Please see the example provided in the scenario below). A F C T e l e c o m U s e r M a n u a l | 77 of 401 Copyright 2018 Avalara, Inc. Adjustment Scenario Number of Lines Customer Orders 1 line Customer Orders 5 lines Customer Orders 40 lines Customer Orders 5 lines Rate Rate @ 0.67 Rate adjusted to 6 lines @ 0.34 Rate adjusted to 46 lines @ 0.22 Rate adjusted to 51 lines @ 0.17 Customer adjustment 7 lines: Total Tax Amount Tax = 0.67 Tax+=1.37 Tax+=8.08 Tax-=1.45 rate @ 0.34 tax =2.38 Rate Table Lines 1-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 Tax 5.92 11.84 17.76 23.68 29.60 35.52 41.44 47.36 Lines 81-90 91-100 101-110 111-120 121-130 131-140 141-150 151-160 Tax 53.28 59.20 65.12 71.04 76.96 88.80 59.20 94.72 Tax Overrides Overrides allow the client to change the rate of a tax in the AFC Engine. Avalara markets the AFC Manager – Rate and Logic Modifier (a Graphic User Interface based Windows program that is sold separately) to support this activity. It steps the user through the process of creating an EZTax.ovr file. Alternatively, overrides can be achieved using the Override functions (such as APIs). WARNING: An override to exempt taxes OVERRIDES the tax information in Avalara’s tax research database. This is not recommended for those that do not possess a full understanding of the tax ramifications and liabilities when doing so. Although all clients can use Tax Overrides, the method to make use of them depends upon the client type. 1. AFC SaaS Standard clients must use the AFC Manager – Rate and Logic Modifier to create an EZTax.ovr file that contains the overrides to insert. The file is then uploaded to the service bureau inside the FTP.zip file that carries the CDS file for processing. The overrides are then used during that processing and for subsequent processing until a new or empty override file is uploaded. 2. Avalara clients that submit records in Batch fashion must use the AFC Manager - Rate and Logic Modifier to create an EZTax.ovr file that contains the overrides to insert. Filelocs.txt is then A F C T e l e c o m U s e r M a n u a l | 78 of 401 Copyright 2018 Avalara, Inc. modified to point to this file. When the data file is processed, the overrides are inserted automatically. 3. Avalara clients that integrate with the AFC Engine using functions (such as APIs) can use the Override utility as an easy way to create overrides in the same manner that batch mode and online clients do, modify filelocs.txt to point to the EZTax.ovr file or use the file path to point to the EZTax.ovr file. The following functions use a session and a tax override record to override the tax rates used by AFC to calculate taxes. Table 4-4 Tax Override Names and Descriptions Function Name EZTaxOvrJCodeEx** Override Description **This is the override JCode function for the most current version of AFC. EZTaxOvrPCodeEx EZTaxOvrZipEx Performs tax override using a JCode to designate the Jurisdiction. Performs tax override using a PCode to designate the Jurisdiction. Performs tax override using zip code and address information to designate the Jurisdiction. Tax Override Fields AFC functions can be used to override a specific tax rate used by AFC. Table 4-5 Tax Override Fields Field Scope Type Level Exempt Level Limit Date Tax Rate Previous Tax Rate Maximum Base Excess Tax State Override County Override Replace State Tax Replace County Tax Description Scope of override Tax type identifier Tax level identifier Level of Exemption Maximum lines or charge to apply tax to Effective date of Tax Rate Tax Rate Previous tax rate Maximum amount to apply tax Rate for amount above the Maximum Base Override state rate if present Override county tax if present Tax replaces state tax Tax replaces county tax Scope Refer to Table 4-6. The term Scope is used to indicate the magnitude of the override. A F C T e l e c o m U s e r M a n u a l | 79 of 401 Copyright 2018 Avalara, Inc. Table 4-6 Tax Level Effect of Exemption Tax Level Federal Federal Federal Federal State State State County County County Locality Locality Locality Scope Federal State County Locality State County Locality State County Locality State County Locality Effect of Exemption Exempt all defined Federal taxes Exempt entire State for the specific Federal taxes Exempt the Federal taxes within a specified County Exempt the Federal taxes within a specified Locality Exempt all Defined State taxes within a State Exempt the State taxes within a specified County Exempt the State taxes within a specified Locality Exempt all County taxes within a specified State Exempt all County taxes within a specified County Exempt the County taxes within a specified Locality Exempt all Locality taxes within a specified State Exempt all Locality taxes within a specified County Exempt all Locality taxes within a specified Locality As an example, specifying a gross receipts tax at the Local level with a scope of State level will cause all jurisdictions in the state identified by the jurisdiction to be passed to the AFC Engine with the specified tax overridden. The County level affects all taxes in the County and Local level affects only the jurisdiction specified. The specification of Federal level is only valid with federal taxes which will always be overridden at the Federal level. Type The Tax type identifier is used to define the type of tax for which the override will apply. Refer to Table 419 for a complete list of Tax Types supported in AFC. Level The Tax level identifier is used to define the level for which the override will apply. Exempt Level Refer to Table 4-6. The Exempt Level indicator is used to define whether a tax can be exempted by an exemption for all taxes at the same level as this tax. TRUE indicates that the tax can be exempted while FALSE indicates that it cannot be exempted. Note that the tax can still be exempted by a specific tax exemption. For instance, a state level universal service fund will be exempt if this field is set TRUE and a state level tax exemption flag is passed to AFC. If the flag is set TRUE an exemption at the level of the tax will exempt the tax. If the flag is set FALSE an exemption at the level of the tax will have no effect on that specific tax. A F C T e l e c o m U s e r M a n u a l | 80 of 401 Copyright 2018 Avalara, Inc. Limit The limit indicator is only used for taxes applied per line. When this field is set to zero it indicates no limits are in effect for the specified tax. When the limit is not zero, AFC will apply the tax based upon the number of lines up to, but never exceeding, the limit amount. This has no effect on sales taxes Date The Date field is used to define the effective date that the tax rate is active. The transaction date is compared to the effective date to determine if the current tax rate or the previous tax rate is to be applied. Tax Rate If the taxes are computed as a percentage of the charge then the Tax Rate field is used to indicate the tax rate. For example, if a 5% sales tax were applied then the tax rate would be entered as .05. For all other taxes such as per line, fixed, and per minute, the dollar amount should be entered for the tax. Previous Tax Rate The Previous Tax Rate field is supplied for use when a previous tax is to be used for the tax rate. Maximum Base The Maximum Base defines the maximum charge that the tax is applied to. Any charge above the maximum base is charged at the excess tax rate. Excess Tax If the tax only caps the charge that the tax is applied to then set the excess tax to zero. State Override The Locality or County sales tax record can override the state sales tax rate. This is useful where localities or counties have a special agreement with the state to collect the state tax at a different rate. If the tax is zero then no override will be in effect. County Override The Locality sales tax record can override a County sales tax rate. This is useful where localities have a special agreement with the County to collect the County tax at a different rate. If the tax is zero then no override will be in effect. A F C T e l e c o m U s e r M a n u a l | 81 of 401 Copyright 2018 Avalara, Inc. Replace State Tax This option is made available for the rare occasion when a Locality or County sales tax replaces the state sales tax completely. Replace County Tax This option is made available for the rare occasion when a Locality sales tax replaces a county sales tax completely. Tax Override Options The Enhanced Override is used to override taxes. Table 4-7 Tax Override Options Name Enhanced Override Enhanced Date Override Enhanced Rate Override Description Required fields for the Enhanced Override. Required fields for Date Override. Required fields for Rate Override. Enhanced Override The Enhanced Override requires the following fields. Table 4-8 Enhanced Override Fields Scope Type Level Date Count Date Table Scope of override Tax Type identifier Tax Level identifier Number of date records (normally 2) Address of array of date records Enhanced Date Override The Enhanced Date override requires the following fields. Table 4-9 Enhanced Date Override Fields Override Date Rate Count Level Exempt Rate Table Starting (effective) date for this set of tax rates Number of rate records for this date (normally 1) Indicates if tax can be exempted by an exemption for all taxes at the same level as this tax. Tax can still be exempted by specific tax exemption. address of array of rate records Enhanced Rate Override The Enhanced Rate Override requires the following fields and rate entries in rate table for taxes. Table 4-10 Sales Rate Override Fields Tax Maximum Base Tax Amount (rate) Max amount subject to this tax(end of bracket) A F C T e l e c o m U s e r M a n u a l | 82 of 401 Copyright 2018 Avalara, Inc. Table 4-10 Sales Rate Override Fields Replace State State Override Replacement County County Override Tax replaces the state tax Overrides the state rate if present Tax replaces the county tax Overrides the county tax if present Get Rates The AFC Get Rates function can be used to build the current tax information into the override structure. Specific changes can be made to returned tax entries to create custom overrides. Table 4-11 Get Rates Override Fields PCode Tax Count *Taxes Table Jurisdiction PCode Count of all taxes for this jurisdiction Table of all taxes for this jurisdiction in override format NOTE: The scope value will be set to the tax level. General Tips When Using Overrides 1. Overrides are not permanent. When an AFC session is exited the created overrides are removed and no longer available. They can also be removed without exiting a session using the EZTaxRestore function. 2. AFC cannot override a tax that does not exist. If an existing tax is a rate, it is necessary to override the tax as a rate, not a per line or fixed amount. Failure to do so will result in incorrect and high tax amounts. 3. Non-exemptible taxes may be overridden to exempt taxes that are normally not exemptible. 4. The AFC Override functions can be used to override the rates, but they will not affect the rules that 5. Determine what taxes are applied to different transaction/service pairs. General Rules for Configuring Override File 1. The override file path must be listed in filelocs.txt. 2. The override file must be the last item in filelocs.txt. A F C T e l e c o m U s e r M a n u a l | 83 of 401 Copyright 2018 Avalara, Inc. 3. There cannot be any blank lines in filelocs.txt. Also, in order to verify that an override file is in the process of being loaded, the user must go to the AFC Directory and locate the .sta or status file which indicates that an override file has been successfully loaded. Tax Rate Brackets Some jurisdictions will dictate a tax rate that changes as the taxable amount of the transaction increases. These break points at which the changes occur define the brackets (or steps) and are most commonly based on dollar amount ranges although other units of measure exist. The rate may increase or decrease according to usage levels. AFC supports these transactions with an unlimited number of tax brackets. The Avalara Tax Research department continually researches jurisdictions for specific tax practices, such as tax rate brackets, updating the AFC Engine monthly. These updates occur automatically and the user is not required to make changes to account for this. An example of this is illustrated in Figure 4-1. If a jurisdiction has a general sales tax set at 2% for the first $500 of a single transaction and set at 1% for that which is over $500, the tax for a $1200 sale would be calculated as shown in the figure. Figure 4-1 Example of Sale with Tax Brackets First $500 of Sale Remaining Amount of Sale (Over $500) $500 $700 @ @ 2% 1% = = $10.00 7.00 $17.00 Total Tax Rate at Final Rate at Final is a variation of the typical tax bracket. Basically a lookup table, each bracket is defined by the break points at which a rate change occurs and contains the rate to be charged for the total transaction amount falling within the range. For example, suppose a state establishes an E911 tax with a tax rate dependent on the total number of lines as shown in Figure 4-2. Figure 4-2 Example of Tax Brackets Lines 1 2 3 4 to 5 6 to 10 11 to 25 26 to 50 51 to 99 Rate $0.19 $0.14 $0.13 $0.11 $0.10 $0.08 $0.06 $0.05 A F C T e l e c o m U s e r M a n u a l | 84 of 401 Copyright 2018 Avalara, Inc. Figure 4-2 Example of Tax Brackets Lines 100+ Rate $0.04 If a customer has 7 lines, the tax rate of $0.10 per line will apply for a total tax of $0.70. If a customer has 2 lines, the tax rate of $0.14 per line will apply for a total tax of $0.28. Limits Some jurisdictions have established tax rates that either take effect or cease to take effect at a specific threshold, defined as a currency value. The point at which this occurs is referred to as a cap or limit. AFC supports these transactions and the user is not required to make changes to account for it. As an example, if a jurisdiction charges a 10% UTT on only the first $10 of an invoice, the tax for a $20 invoice would “cap” at the $10 threshold, resulting in a ($10 x 10% =) $1 UTT fee. As an example of the converse, if a jurisdiction does NOT tax the first $25 of Internet Access usage, a $35 charge would be reduced by the $25 threshold “limit,” resulting in a ($35-$25 = ) $10 taxed amount. Surcharges When a government entity levies a surcharge, AFC automatically includes this surcharge in the base of the FET. The most common occurrence of this is found in E911 surcharges. The returned tax table shows which tax entries are considered surcharges. Prorated Taxes The AFC Prorating functions send in a percentage that is used to calculate taxable amount on the rated tax and calculates a percentage of the line and fixed amounts. These functions check the prorated logic of each tax in the appropriate jurisdiction to determine if prorating is allowed. If prorating is not allowed, the full amount is taxed. Discount Adjustment AFC has an additional table that stores discount types by state with an “allow ability” indicator. The adjustment functions have arguments for the discount type which look up the discount type from the table to determine whether to apply taxes or not. Discounts may or may not be taxed within each state. When a discount is taxed, the customer receives a tax benefit commensurate with the amount of the discount (i.e., if the customer gets $5 off on a transaction subject to a 5% tax, the customer pays $0.25 less in tax than they would have). When a A F C T e l e c o m U s e r M a n u a l | 85 of 401 Copyright 2018 Avalara, Inc. discount is not taxed, the customer receives no tax benefit from the discount. Whether a discount is taxed or not depends on the type of discount and the rules in a particular tax jurisdiction. AFC provides five discount types to use in defining the particular discount to be applied and are fully described with supporting example in the following sub-sections. Discount Type ID 0 1 2 Value None (Default) Retail Product Manufacturer Product 3 Account Level 4 Subsidized 5 Goodwill Description Discount Type not applicable. An amount subtracted from the original price to arrive at a lower price. A credit applied to the total amount reimbursed to either the retailer or the customer by the manufacturer. A stand-alone discount that is not applied against any service but instead as a stand-alone product. A credit for telephone service where the telephone provider provides a service to a lifeline eligible customer. The credit will be applied to the subscriber line charge. A credit applied to customer invoices for the purpose of engendering customer goodwill. For example, compensation for a service outage. Account Level Especially prevalent in large accounts, this discount is a stand-alone discount that is not applied against any service but instead as a stand-alone product. Example Description of Account Level A Kansas customer spends significant amounts on a wide range of services including local exchange, intrastate toll, and interstate toll. The customer’s purchasing activity occurs in several states and across multiple accounts. The customer’s spending levels earn it a $1,000.00 discount that is not applied to any particular product or service, but will be applied at an account level. XYZ Phone Company’s Tax Department has determined that account level discounts in Kansas will receive full tax credit, so the discount is mapped to a tax category created to represent generic account level discounts and the customer gets a $53.00 credit of Kansas state sales tax along with the $1,000.00 discount. The application of Kansas sales tax to the discount, rather than other state's sales taxes (i.e., states in which there was purchasing activity that helped to earn the discount), is a consequence of the discount being applied to a Kansas account and The Tax Department has determined that the related tax risk is acceptable. A F C T e l e c o m U s e r M a n u a l | 86 of 401 Copyright 2018 Avalara, Inc. Goodwill A credit applied to customer invoices for the purpose of engendering customer goodwill. For example, compensation for a service outage. Example Description of Goodwill A Kansas customer buys a second line and gets voice mail free for a month ($6.00 value). The free voice mail is a Goodwill Discount because, although it is offered by the retailer and applied to a particular product or service, the terms of the promotion provide that the discount will not be taxed. To accomplish this, the billing system will make separate calls to the taxing engine of $6.00 for the monthly recurring voice mail charge and -$6.00 for the Goodwill Discount. Both transactions will be represented by the same tax category, but the billing system will send an additional value on the discount transaction indicating that it is a Goodwill Discount. The $6.00 charge for voice mail generates $0.32 in Kansas state sales tax. When the -$6.00 discount is processed for tax applications, the taxing engine determines that a Goodwill Discount is not taxed and generates -$0.00 in Kansas state sales tax. The offsetting tax amounts are presumably netted together in the tax summary on the customer’s bill. Whether the charge and discount amounts are netted on the customer’s bill is up to the billing system, and does not affect the tax calculation or the presentation of tax on the bill. Manufacturer Product A credit applied to the total amount reimbursed to either the retailer or the customer by the manufacturer. Example Description of Manufacturer Product A Kansas customer buys a satellite dish for $300.00 and receives a $50.00 rebate (discount) from the satellite company. The billing system will make separate calls to the taxing engine for the dish charge of $300.00 and the discount of -$50.00. Both transactions will be represented by the same tax category, but the billing system will send an additional value on the discount transaction indicating that it is a Manufacturer Discount. The $300.00 charge for the satellite dish generates $15.90 in Kansas state sales tax. For the -$50.00 discount, the tax engine determines that Kansas does not allow any tax credit on Manufacturer Discounts and generates $0.00 in Kansas state sales tax. The offsetting tax amounts are presumably netted together in the tax summary on the customer’s bill. Whether the charge and discount amounts are netted on the customer’s bill is up to the billing system, and does not affect the tax calculation or the presentation of tax on the bill. A F C T e l e c o m U s e r M a n u a l | 87 of 401 Copyright 2018 Avalara, Inc. Retail Product A retail product discount is an amount subtracted from the original price to arrive at a lower price. Example Description of Retail Product A Kansas customer has voice mail and is charged a monthly recurring charge of $6.00/month. The customer buys a second line and gets voice mail free for a month. The billing system will make separate calls to the taxing engine for the monthly recurring charge of $6.00 and the discount of -$6.00. Both transactions will be represented by the same tax category, but the billing system will send an additional value on the discount transaction indicating that it is a Retailer Discount. The $6.00 charge for voice mail generates $0.32 in Kansas state sales tax. For the -$6.00 discount, the tax engine determines that Kansas allows a full tax credit on Retailer Discounts and generates -$0.32 in Kansas state sales tax. The offsetting tax amounts are presumably netted together in the tax summary on the customer’s bill. Whether the charge and discount amounts are netted on the customer’s bill is up to the billing system, and does not affect the tax calculation or the presentation of tax on the bill. Subsidized A credit for telephone service where the telephone provider provides a service to a lifeline eligible customer. The credit will be applied to the subscriber line charge. Example Description of Subsidized A Kansas Lifeline customer purchases local exchange service. Local exchange service is normally $24.00, but Lifeline customers are charged $20.50 and the balance of $3.50 is drawn from a federal government fund for the subsidization of local exchange service to Lifeline customers. The company still has $24.00 in revenue and will owe Kansas state sales tax on the entire $24.00 in revenue. The company is prohibited from drawing on the federal government fund to pay for the tax on the $3.50, so the customer must pay all of the applicable tax. Tier at Transactions In some states, the sales tax on a product has tier taxing logic. When tax is calculated using Tier at Transactions the tax is determined using graduated tax brackets on each transaction separately rather than the amount of the customer invoice. The tax applies tax brackets based on the single product transaction. Tier at Transaction is not the default setting in AFC. A F C T e l e c o m U s e r M a n u a l | 88 of 401 Copyright 2018 Avalara, Inc. Tax on Tax Until no Effect The default application of tax on tax is to make one pass through the calculation of each tax, adding the appropriate taxes to the base amount to be taxed. If the tax on tax until no effect option is selected, AFC will continue to recalculate tax on tax until the amount added is less than 0.005 (one half of a cent). Historical Tax Rates AFC maintains an unlimited number of past tax rates. The tax rate history tables contain the tax rates and effective dates and are referenced when tax calculations are performed on date other than the current date. Taxed Taxes Taxed taxes are instances in which one tax includes in its base the tax calculated from another tax. This can happen when the taxed tax was passed on from the carrier to the end user, thus being revenue to the carrier. This commonly happens with the Federal USF, but it can happen with other taxes as well. As the scope of this document prohibits a discussion of the many examples of taxed taxes, the most common occurrence is discussed here with an example to serve as an introduction to the topic. AFC applies Federal excise tax to surcharges, the federal universal service funds and the Federal telecommunications relay service fund. The taxation of the federal universal service funds is performed because they are not taxes by definition. In addition, both the federal universal service funds and the federal telecommunications relay service fund are levied against telecommunications companies, not end users. Telecommunications companies are allowed, but not required, to pass these fees on to their customer base. As these fees are revenue, not taxes, collecting revenue based upon a provided service is taxable as payment for that service. When the federal excise tax is multiplied by the amount passed to AFC for a transaction and the tax generated by AFC doesn't agree with the calculation it is due to this situation. This phenomenon is not limited to the federal excise tax. It is, however, where it is most noticed due to the volume of federal excise taxes and the common knowledge of its rate. Refer to Figure 4-3. In the case where the Federal USF and the FET are returned for a transaction, the Federal USF is automatically included in the base of the FET. If both taxes are returned for a $100 charge, the taxes would be calculated as follows: A F C T e l e c o m U s e r M a n u a l | 89 of 401 Copyright 2018 Avalara, Inc. Figure 4-3 Taxed Taxes Example (tax rate of 3% is used in this example) Tax A Charge Rate Tax Amount x = FET $100.00 3% $3.00 Charge $100.00 Tax A Tax B base Rate Tax Amount + = x = $3.00 $103.00 3% $3.09 Tax Logging Once the tax calculations are complete, the EZTax.log is created. The log is a binary database containing all of the taxes generated during the tax run. Information in the log includes the jurisdictional data, tax types, tax levels, sale amounts, tax rates, tax amounts, exemptions, adjustments, customer number, etc. Once AFC performs a graceful exit, the EZTax.log is available for use. This file is commonly used to create tax returns, provide audit trails and internal tracking, and used when making projections. The options available for reporting the tax information vary based on the integration method that the client has chosen to use. 1. Batch mode clients – The EZTax.log is automatically produced when processing the .CDS file. Several utilities are available for use to produce files to be imported into the billing system. Refer to Section 5.1 for utility selection assistance. 2. AFC SaaS Standard clients - The EZTax.log is automatically produced and the sorting and reporting activities are performed automatically. 3. On-site clients - The EZTax.log is automatically produced. Many sorting and reporting utilities are available for use to produce the desired output file. Refer to Section 5.1 for utility selection assistance. 4. APIs - Clients who use the functions (such as APIs) must turn logging on to gain the benefit of sorting utilities. All of the information used for billing is returned real time during taxation. Returned Taxes Once the tax calculations are completed, the tax information is placed in the Tax Table, available to be returned to the user from the AFC engine. An additional Tax Table will be returned if using Invoice Mode. A F C T e l e c o m U s e r M a n u a l | 90 of 401 Copyright 2018 Avalara, Inc. Taxes Table The AFC Table is dynamically allocated during AFC session initialization. This table is used to store tax information as AFC processes transaction records. The size of this table is dependent upon the maximum taxes that can be generated for a single transaction. As such, the size of this table can change from month to month as new taxes are generated or removed from taxing jurisdictions. It is always safe to access from 0 (zero) to [tax_count_returned -1] locations of the table. The user is cautioned to treat this as a read only area. Attempting to access locations that do not exist will result in access violations on most operating systems. Each function that performs tax calculations or tax exceptions returns a count of taxes generated for the specified transaction. The transaction tax data can be retrieved for use in a billing system by accessing the Tax Table pointer which indicates the location of the tax amount in the AFC Table array. Returned Tax Information Tax information can be returned using the P Code, J Code, Zip or FIPS functions. A value is returned to indicate the number of taxes returned and included in the Tax Table. Each tax calculated is returned as a record in the tax table. Taxes are retrieved by looping through the table by the number of taxes, which is then returned by the taxation API call. Each row in the Tax Table will contain the information shown in Table 4-12. Table 4-12 Enhanced Taxes Table Fields PCode PCode for tax jurisdiction Tax Type Tax Type Tax Level Tax Level** Calculation Type Calculation Type (i.e. Rate, Fixed, Per Minute, Per Line) Rate Tax Rate or amount applied Tax Amount Calculated tax amount Taxable Measure Amount of charge plus any taxed taxes Exempt Sale Amount Amount of the charge exempt from taxes *Desc Tax description string Billable Billable flag from tax logic Compliance Compliance flag from tax logic Surcharge Flag FET taxable flag from tax record **Country taxes within any US territory will be returned at a state level versus a federal level. Returned Tax Information Using Invoice Mode AFC applies Steps, Brackets and/or Limits on a per transaction basis unless operating in Invoice Mode. Invoice Mode is used to group transactions that apply to the same customer. AFC maintains a history of the transactions and applies the Steps, Brackets and/or Limits to entire group of transactions. A F C T e l e c o m U s e r M a n u a l | 91 of 401 Copyright 2018 Avalara, Inc. For example, suppose a jurisdiction charges a 10% sales on just the first $10 of an invoice. If two separate $6 transactions on the invoice are passed while not in Invoice Mode, two $0.60 tax charges would be erroneously totaled and a $1.20 tax would be generated. However, if these same transactions are passed while in Invoice Mode, the total tax charge would be correctly totaled and a $1.00 tax would be generated. Table 4-13 Invoice Mode Tax Table Fields PCode Tax Type Tax Level Calculation Type Rate Tax Amount Exempt Sale Amount *Desc PCode for tax Tax Type Tax Level** Calculation Type (i.e. Rate, Fixed, Per Minute, Per Line) Tax Rate or amount applied. Calculated tax amount. Amount of the charge exempt from taxes. Tax description string For tax calculations based on line counts, it is the number of lines used in the Lines calculation to produce the tax. For Federal taxes, the line count always matches the lines input. For all other taxes, it is 0. For tax calculations based on minutes, it is the number of minutes used in the Minutes calculation to produce the tax. For all other taxes, it is 0. Maximum amount to which tax is applied amounts above this will be taxed at a Max Base higher bracketed rate (if applicable). Minimum amount to which tax is applied amounts below this will be taxed at a Min Base lower bracketed rate (if applicable). Excess Tax Rate for amount above Max Base returned as part of county tax. Total Charge Sum of charges calculated on a per customer basis. **Country taxes within any US territory will be returned at a state level versus a federal level. Invoice Mode Tax Amount Adjustments Since AFC processes each transaction as it is received with no knowledge of future transactions it must make adjustments to the tax amount when additional transactions are received that cause the rate of previous transactions to change. Example (Please reference and see the Rate Table for an overview of rates.) Standard tax mode: 3 lines were received at the rate of 0.45 per line for E911 => tax amount $1.35. 2 lines were received at the rate of 0.50 per line for E911 => tax amount $1.00. Total tax for E911 => $2.35 A F C T e l e c o m U s e r M a n u a l | 92 of 401 Copyright 2018 Avalara, Inc. Invoice Mode: 3 lines were received at the rate of 0.45 per line for E911 => tax amount $1.35. 2 more lines were received for a total of 5 lines which changes the rate to 0.40 per line. The total tax should be $2.00 but since the customer had already been taxed $1.35 for this same tax then the additional tax amount returned is $0.65. Total tax for E911 => $2.00 In some cases the adjustment required for a rate change may cause a negative tax amount to be returned. The summarized tax amounts returned when the list of customer transactions are complete will match what the customer would have been charged had the series of transactions processed been entered as a single transaction. Tax Grouping AFC allows a client application to group the tax calculation results returned in the tax table based on tax level and tax type criteria. This may be accomplished by setting the appropriate group mode option in the configuration file (see TM_00548_AFC Configuration Guide). The option specified in the configuration file will automatically be applied to every AFC session as it is initialized. However, this option may be overridden by calling the EZTaxGroupResults API function. NOTE: This option will not modify the way that tax calculation results are logged into the EZtax log file. Only the tax calculation results returned by either one of the tax calculation API will be group according to the values set for this option. General Rules The following rules apply when using any value for this option: 1. Federal taxes may not be grouped. Each Federal tax will be returned individually. 2. Non-billable taxes may not be grouped. 3. Only rate-based taxes may be grouped. Taxes with a different calculation type (for example, fixed, per line, etc) will be returned individually. 4. Use taxes may be grouped with other use taxes only (for example, state and local use tax). Use taxes will not be grouped with other tax types. 5. When grouping taxes for different tax levels (for example, state and local taxes) the jurisdiction code for the lowest level jurisdiction will be returned. A F C T e l e c o m U s e r M a n u a l | 93 of 401 Copyright 2018 Avalara, Inc. 6. Unincorporated taxes will be considered as County taxes when grouping taxes by tax level, and will be grouped accordingly. 7. The tax rates for all taxes being grouped into a single record will be added together. Options: AFC provides the following options in order to group the taxes in the tax table by tax level: 1. Group taxes at the same level. When using this option, taxes at the same level will be grouped together. 2. Group state, group county and local. By using this option, all state level taxes will be grouped into a single record, and all county and local taxes will be grouped together into a separate record. 3. Group state, county, and local. If this option is specified, all state, county, and local taxes will be grouped together. In addition to grouping taxes by tax level, AFC allows you to separate sales taxes from other tax types. The following options may be used in conjunction to the tax level options specified above. Group sales taxes. This option indicates that Sales Taxes (tax type 1) and Use Taxes should be grouped separately from other taxes. Group taxes in the sales category. All taxes that are in the sales category (such as some District and Transit taxes, in addition to Sales Taxes) will be grouped together separately from other taxes. If the group mode is being specified within the EZTax.cfg file, the sales tax option may be combined with the tax level option by inserting the option in the line following the tax level option. For example: groupstatecountyandlocal groupsalescategory When calling the API function, a sales tax option may be combined with a tax level option by using the bitwise OR operator in the group mode parameter. For example: EZTaxGroupResults(session, GROUP_ST_CO_LOCAL | GROUP_SALES_CATEGORY); By using the default option in the configuration file or the API function, this feature will be disabled, and all taxes will be returned in an individual record. Tax Return Table When grouping taxes together, the fields in the tax return table will contain the following values: A F C T e l e c o m U s e r M a n u a l | 94 of 401 Copyright 2018 Avalara, Inc. 4. Jurisdiction Code. Jurisdiction Code (PCode or JCode depending on the API call and interface being used) for the lowest level jurisdiction. For example, if Kansas state taxes and Overland Park local taxes were grouped together, the tax record will contain the jurisdiction code for Overland Park. 5. Tax level. When grouping State, County and Local taxes together, the tax record will contain a value of 6 in the tax level. When grouping only County and Local taxes together, the tax record will contain a value of 7 in the tax record. Constants are provided for these values in the appropriate file. 6. Tax type. When grouping different taxes together, the tax type in the tax record will contain a value of 0. If only Sales Taxes (tax type 1) or Use Taxes (tax type 49) are being grouped together, the tax record will contain the corresponding tax type. 7. Tax amount. This field will contain the sum of the tax amount for all taxes being grouped together. 8. Tax rate. This field will contain the sum of the tax rates for all taxes being grouped together. NOTE: The remaining fields in the tax table will not contain any meaningful value. Grouping tax calculation results may serve as a way to simplify the tax information for display purposes only. If further detail is required for each tax being returned by AFC, this feature should not be used. Tax Types When a transaction is processed through the AFC Engine, a Tax Type is assigned based on the results. The Tax Type is determined by the transaction location and transaction/service pairs provided in the transaction record and is used to accurately describe the exact nature of the tax applied (refer to Table 414). With so many Tax Types available, highly detailed and specific tax descriptions are provided for use in taxation disclosure. This is useful in billing and customer service, and simplifies tax compliance filing. Users can only control the tax types with the Avalara EZdata® product (sold separately). AFC allows for a change, referred to as an override (see section 4.1.3), of the rate for a specific tax type and tax level in a specific jurisdiction. When overriding a tax type, the tax type must exist in the jurisdiction where for the override is to be made. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 1 2 3 NAME Sales Tax Business and Occupation Tax Carrier Gross Receipts DESCRIPTION This is a tax on the privilege of purchasing goods and services. This is a tax that is normally based upon having a business, occupation, or residence within the taxing authority's geopolitical boundaries. This is a tax based upon gross receipts of the telecommunications carrier. Each portion of the tax is passed on to consumers based upon the amount of their phone bill. A F C T e l e c o m U s e r M a n u a l | 95 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 4 District Tax 5 Excise Tax 6 Federal Excise Tax 7 Fed USF A – School 8 License Tax 9 P.U.C. Fee 10 E911 Tax 11 Service Tax 12 Special Tax 13 State Universal Service Fund 14 Statutory Gross Receipts 15 Surcharge 16 Utility Users Tax 17 Sales Web Hosting 18 Fed Universal Service Fund 19 State High Cost Fund 20 State Deaf and Disabled Fund 21 CA Teleconnect Fund 22 Universal Lifeline Telephone Service Charge 23 Telecom Relay Surcharge DESCRIPTION District taxes are taxes associated with a particular district. This is typically this is a school district; however it could be a redevelopment, sports entertainment or some other type of district. Excise taxes are imposed at the manufacturer and/or retail level and are virtually indistinguishable from a sales tax to the consumer. However, many excise taxes are considered part of the sale or gross receipts and are therefore taxes by sales and/or gross receipts taxes. Federal tax on telecommunications services. A federal universal service fund imposed by the Federal Communications Commission to fund schools, libraries and rural health care support mechanisms. (See also type 18) Tax based upon the granting of a license to perform a service to the community. In many cases, this tax can be passed on to consumers. Public Utility Commission fees are used to fund the Public Utility Commission or Public Service Commission. This tax is used to fund the emergency 911 systems. This tax is used to fund a service such as the telecommunications relay service for the deaf. Used to specify a tax that does not fit into a typical category. The purpose of the fund depends upon the state; however these are typically used for items such as funding schools or subsidizing the cost of telecommunications users in remote locations. Tax based upon the gross receipts of one or more transaction and service type combinations. Surcharge imposed by a taxing jurisdiction upon telecommunications services. Typically these are taxed by the federal excise tax and may be taxes by other taxes as well. This is a tax imposed upon users of utilities. In this case the utility is telecommunications. Similar to tax type 1 (Sales Tax) but applies only to web hosting services. Federal Universal Service Fund charge imposed by FCC to fund schools, libraries, rural health care support mechanisms, lifeline, link-up, and the high cost fund. This charge is applied upon interstate and international telephone revenue and FCC Subscriber Line Fee charges. State high cost funds are used to subsidize the cost of telecommunications users in remote locations. For other than wireless or VoIP revenue. This fund is used to provide access to telecommunications services for deaf and disabled individuals. This fund supports California providers that offer discounts to schools, libraries, health care and community-based organizations with telecommunications services that qualify. For other than wireless or VoIP revenue. This California state charge funds a program that provides basic telephone service to qualifying low income families. For other than wireless or VoIP revenue. Surcharge to provide funding for telecommunications access for the hearing impaired. A F C T e l e c o m U s e r M a n u a l | 96 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 24 25 26 NAME Telecommunications Infrastructure Maintenance Fee State Poison Control Fund Telecommunications Infrastructure Fund 27 NY MCTD 186c 28 NY MCTD 184a 29 Franchise Tax 30 Utility Users Tax – Business 31 Fed Telecommunications Relay Service 32 District Tax (Residential) 33 Transit Tax 34 Telecommunications Assistance Service Fund 35 E911 Tax (Business) 36 TRS (Business) 37 38 39 Universal Service Fund (Access/Trunk line) Universal Service Fund (Business Line) E911 Tax (PBX/Trunk line) 40 License Tax (Business) 41 Optional Telecommunications Infrastructure Maintenance Fee DESCRIPTION Fee used to fund the maintenance of telecommunications infrastructure (network, switches, etc.). Fund used to establish and support a statewide poison control center network. Fund used to support the telecommunications infrastructure. New York Metropolitan Commuter Transportation District (NY MCTD) imposed surcharge based on the taxable telephone services subject to the NY 186e excise tax on telecommunications and said services have occurred solely within the specific NY counties that comprise the NY MCTD. New York Metropolitan Commuter Transportation District (NY MCTD) imposed surcharge based on the taxable local telephone services subject to the NY Franchise 184 tax (tax type 45 below) and said services have occurred solely within the specific NY counties that comprise the NY MCTD. Tax imposed upon a telecommunications carrier for granting of a telecommunications franchise by the governing body. Many of these can and are passed on to the consumer. Similar to tax type 16 (Utility Users Tax) but applies only to business subscribers. This will occur when different rates exist for utility users based upon their being a business or residential user. The tax funds the Federal Telecommunications Relay Services (TRS), which is required by Title IV of the Americans with Disabilities Act. Similar to tax type 4 (District Tax) but applies only to a residential customer. A specific state, county, district or local tax used to support a transportation district or program. If this is a district program, the boundaries can overlap county and local jurisdictions. Similar to tax type 13 (State Universal Service Fund) but the funding is usually focused on helping low income and elderly telecommunication users. Typically this charge is accessed as a per line charge on local lines. Similar to tax type 10 (E911 Tax) but applies only to a business customer. Similar to tax type 23 (Telecommunications Relay Service Surcharge) but applies only to a business customer. Similar to tax type 13 (State Universal Service Fund) but applies only on applicable local access or local trunk line. Similar to tax type 13 (State Universal Service Fund) but applies only on a business local line. Similar to tax type 10 (E911 Tax) but applies only on a local PBX or local trunk line. Similar to tax type 8 (License Tax) but applies only to a business customer type. Similar to tax type 24 (Telecommunications Infrastructure Maintenance Fee) but applies only in the state of Illinois and at the option of the carrier for municipalities in Illinois who do not impose a local TIMF charge. A F C T e l e c o m U s e r M a n u a l | 97 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 42 Sales Tax (Business) 43 E911 Tax (Residential) 44 E911 Tax (Wireless) 45 NY Franchise 184 46 NY Franchise 184 Usage 47 NY MCTD 184a Usage 48 Universal Service Fund (Wireless) 49 Use Tax 50 Sales Tax (Data) 51 Municipal Right of Way 52 53 54 Municipal Right of Way (Business) Municipal Right of Way (Private Line) Utility Users Tax (Wireless) 55 Fed USF Cellular 56 Fed USF Paging 57 Sales Tax (Interstate) 58 Utility Users Tax PBX Trunk 59 District Tax Web Hosting DESCRIPTION Similar to tax type 1 (Sales Tax) but applies only to a business customer. Similar to tax type 10 (E911 Tax) but applies only to a residential customer. Similar to tax type 10 (E911 Tax) but applies only on wireless telecommunications. NY State imposed franchise tax on local telephone carriers who are principally engaged in the conduct of local telephone business (i.e. 50% or more of the carrier’s operating revenues are derived from local telephone business revenues.) Similar to tax type 45 (NY Franchise 184) but only applicable to separately charged intraLATA toll services. Said charge is still subject to the “principally engaged in the conduct of local telephone business” standard as described above in tax type 45 description. Similar to tax type 28 (NY MCTD 184a) but only applicable to separately charged intraLATA toll services. Said charge is still subject to the “principally engaged in the conduct of local telephone business” standard as described above in tax type 45 description. Similar to tax type 13 (State Universal Service Fund), but applies only on wireless telecommunications. An ad Val Orem tax on the use, consumption, or storage of tangible property and usually assessed at the same rate as the sales tax of the applicable jurisdiction. Similar to tax type 1 (Sales Tax) but applies only on data services. Tax imposed on local exchange telephone services to cover the municipal cost in managing and maintaining municipal rights-of-way. Typically these charges are accessed through a per line fee. Similar to tax type 51 (Municipal Right of Way) but applies only to business customers of local exchange services. Similar to tax type 51 (Municipal Right of Way) but applies only to private line customers (Residential and Business). Similar to tax type 16 (Utility Users Tax) but applies only on wireless telecommunications. Similar to tax type 18 (Fed USF Combined High Cost and School) but applies only on wireless telecommunications. Following the "safe harbor" taxing and remittance standards for cellular providers set by the FCC; this tax type is assessed at a rate of thirty seven and one tenth percent (37.1%) of the current Federal USF rate as established by the FCC. Similar to tax type 18 (Fed USF Combined High Cost and School) but applies only on paging services. Following the "safe harbor" taxing and remittance standards for paging service providers set by the FCC; this tax type is assessed at a rate of twelve percent (12%) of the current Federal USF rate as established by the FCC. Similar to tax type 1 (Sales Tax) but applies only on interstate telecom services. Similar to tax type 16 (Utility Users Tax) but applies only on PBX trunks. Similar to tax type 4 (District Tax) but applies only on web hosting services. A F C T e l e c o m U s e r M a n u a l | 98 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 60 CA High Cost Fund A 61 Telecommunications Education Access Fund 62 Fed TRS Cellular 63 Fed TRS Paging 64 Communications Services Tax 65 Value Added Tax (VAT) 66 67 68 69 70 71 72 Goods and Services Tax (GST) Harmonized Sales Tax (HST) Provincial Sales Tax (PST) Quebec Sales Tax (QST) National Contribution Regime (NCR) Utility Users Tax (Cable Television) FCC Regulatory Fee (Cable Television) 73 Franchise Tax (Cable) 74 Universal Service Fund (Paging) 75 Statutory Gross Receipts (Wireless) 82 Franchise Tax (Wireless) 83 Reserved Public Education and Government (PEG) Access Fee Communications Service Tax (Satellite) 84 85 DESCRIPTION CA state fund that provides subsidies to specific small independent telephone companies. Said fund is used to minimize any rate disparity of basic telephone service between rural and metropolitan areas. For other than wireless or VoIP revenue. State fund used to facilitate internet access and related telecom services to qualified schools and libraries. Similar to tax type 31 (Fed Telecommunications Relay Service) but applies only on wireless services. Following “safe harbor” taxing and remittance standards for cellular providers set by the FCC; this tax type is assessed at a rate of fifteen percent (15%) of the current Federal TRS rate as established by the FCC. Similar to tax type 31 (Fed Telecommunications Relay Service) but applies only on paging services. Following “safe harbor” taxing and remittance standards for paging service providers set by the FCC; this tax type is assessed at a rate of twelve percent (12%) of the current Federal TRS rate as established by the FCC. A tax on end users who consume communication services. International based tax on the final consumption of certain goods and services. Goods and service tax based on consumption. Provincial sales tax applied in specific Canadian provinces. Rate is a combination of the provincial sales tax and the national GST. Sales tax applied in various Canadian provinces. Specific sales tax applied only in the province of Quebec, Canada. National Canadian tax on telecom for the provisioning of universal service throughout Canada. Similar to the Federal USF. Similar to tax type 16 (Utility Users Tax) but applies only on cable television. A fee used to fund the Federal Communications Commission. Similar to tax type 29 (Franchise Tax) but applies on a cable television carrier for the granting of a cable television franchise by the governing body. Tax similar to tax type 13 (State Universal Service Fund), but applies only on paging telecommunications. Tax similar to tax type 14 (Statutory Gross Receipts) based upon the gross receipts of one or more cellular-only transaction and service type combinations. Similar to tax type 29 (Franchise Tax) but applies on a wireless carrier for the granting of a franchise by the governing body. Reserved Fee to subscribers for support of PEG access. Similar to tax type 64 (Communications Service Tax) but applied only on satellite services. A F C T e l e c o m U s e r M a n u a l | 99 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 86 Franchise Tax (Satellite) 87 88 Reserved Reserved 89 TRS (Centrex) 92 Utility Users Tax (Cable Television – Business) Utility Users Tax (Centrex) E911 (Centrex) 93 Utility Users Tax (Line) 94 Crime Control District Tax 95 Library District Tax 96 Hospital District Tax 90 91 97 98 Health Services District Tax Emergency Services District Tax 99 Improvement District Tax 100 Development District Tax 101 Transit Web Hosting Tax 102 Ambulance District Tax 103 Fire District Tax 104 Police District Tax 105 Football District Tax 106 Baseball District Tax 107 Crime Control District Web Hosting Tax 108 109 Library District Web Hosting Tax Hospital District Web Hosting Tax DESCRIPTION Similar to tax type 29 (Franchise Tax) but applies on a satellite television carrier for granting of a satellite TV franchise by the governing body. Reserved Reserved Similar to tax type 23 (Telecommunications Relay Service Surcharge) but only applied to a Centrex extension. Similar to tax type 71 (Utility users Tax – Cable Television) but only applies to cable television services for business customers. Similar to tax type 16 (Utility users Tax) but only applies to a Centrex extension. Similar to tax type 10 (E911) but only applies to a Centrex extension. This is a tax imposed upon users of utilities based on the number of lines. This tax should not be confused with tax type 16 (Utility Users Tax), which is based on a rate. A specific district tax that supports a crime control program. This district can overlap county and local jurisdictions. A specific district tax that supports a library program. This district can overlap county and local jurisdictions. A specific district tax that supports hospital program. This district can overlap county and local jurisdictions. A specific district tax that supports a health services program. This district can overlap county and local jurisdictions. A specific district tax that supports an emergency services program. This district can overlap county and local jurisdictions. A specific district tax that supports a public improvement program. This district can overlap county and local jurisdictions. A specific district tax that supports a development program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a transportation program. This district can overlap county and local jurisdictions. A specific district tax that supports an ambulance program. This district can overlap county and local jurisdictions. A specific district tax that supports a fire district. This district can overlap county and local jurisdictions. A specific district tax that supports a police district. This district can overlap county and local jurisdictions. A specific district tax that supports a football program. This district can overlap county and local jurisdictions. A specific district tax that supports a baseball program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a crime control program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a library program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports hospital program. This district can overlap county and local jurisdictions. A F C T e l e c o m U s e r M a n u a l | 100 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 110 Health Services District Web Hosting Tax 111 Emergency Services District Web Hosting Tax 112 Improvement District Web Hosting Tax 113 Development District Web Hosting Tax 114 115 116 117 118 Utility Users Tax (Interstate) Utility Users Tax (Telegraph) E911 Network and Database Surcharge License Tax Emergency License Tax Emergency (Business) 119 Educational Sales Tax 120 Educational Use Tax 121 122 123 124 125 E911 Operational Surcharge County Commission E911 Operational Surcharge Voter Approved Sales Tax Nine Hundred Convention Center Tax E911 High Capacity Trunk 126 School Board Tax A 127 School Board Tax B 128 School Board Tax C 129 School Board Tax D 130 School Board Tax E 131 School Board Tax F 132 School District Tax DESCRIPTION A specific district tax on web hosting services that supports a health services program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports an emergency services program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a public improvement program. This district can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a development program. This district can overlap county and local jurisdictions. This tax is similar to tax type 16 (Utility Users Tax) but applies only to the interstate portion of transactions. This tax is similar to tax type 16 (Utility Users Tax) but applies only to telegraph transactions. Charge assessed on each access line to pay the cost of developing and maintaining a network and database for a 911 emergency system. Utility tax for emergency budgetary purposes. Utility tax for emergency budgetary purposes. (Applies to business accounts.) Sales tax designated specifically for education and reported apart from the general sales tax. Use tax designated specifically for education and reported apart from the general use tax. Portion of E911 voted upon and approved by the County Commission. Portion of E911 voted upon and approved by the Voters in a county. Similar to Sales Tax (Type 1) but applies to 900 calls. Sales Tax designated for convention or conference centers. This tax is used to fund the emergency 911 systems. This tax type is used in jurisdictions that have a different rate for High Capacity Trunks. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund School Board. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund a School District. This is typically a Sales Tax. A F C T e l e c o m U s e r M a n u a l | 101 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 133 Police Jury Tax B 134 Police Jury Tax C 135 Police Jury Tax E 136 Communications Services Tax (Wireless) 137 Service Provider Tax 138 Telecommunications Sales Tax 139 Advanced Transit Tax 140 Advanced Transit Web Hosting Tax 141 142 143 144 145 146 Missouri Universal Service Fund Businesses and Occupation Tax (Wholesale) Telecommunications Education Access Fund (Centrex) Businesses and Occupation Tax (Other) Tribal Sales Tax Sales Tax (Data Processing) 147 Transit Tax (Data Processing) 148 Crime Control District Tax (Data Processing) 149 150 Library District Tax (Data Processing) Hospital District Tax (Data Processing) 151 Health Services District Tax (Data Processing) 152 Emergency Services District Tax (Data Processing) DESCRIPTION Tax to fund Police jurisdictions. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund Police jurisdictions. This is typically a Sales Tax. The letter designation is used in compliance reporting. Tax to fund Police jurisdictions. This is typically a Sales Tax. The letter designation is used in compliance reporting. A tax on end users who consume communication services. This tax type applies to wireless only. Tax imposed upon the seller for providing services in a particular jurisdiction. Tax on privilege of purchasing telecommunication services. Occasionally tax jurisdictions impose an alternate sales tax rate on sales of telecommunication services. This tax type will be returned in instances where such distinction exists. A specific state, county, district or local tax used to support a transportation district or program. If this is a district program, the boundaries can overlap county and local jurisdictions. A specific district tax on web hosting services that supports a transportation program. This district can overlap county and local jurisdictions. Fund established by the Missouri PSC to help low-income and disabled Missourians receive discounts for basic local telephone service. This is a tax that is normally based upon having a business, occupation, or residence within the taxing authority's geopolitical boundaries. This tax type pertains to wholesale transactions only. State fund used to facilitate Internet access and related telecom services to qualified schools and libraries. This tax type pertains to Centrex rates only. This is a tax that is normally based upon having a business, occupation, or residence within the taxing authority's geopolitical boundaries. Sales tax imposed by an Indian Tribe. This is a tax imposed on the sale of data processing services. A specific district tax on data processing services that supports a transportation program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports a crime control program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports a library program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports hospital program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports a health services program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports an emergency services program. This district can overlap county and local jurisdictions. A F C T e l e c o m U s e r M a n u a l | 102 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 153 Improvement District Tax (Data Processing) 154 Development District Tax (Data Processing) 155 Advanced Transit Tax (Data Processing) 156 CA PSPE Surcharge 157 District Tax (Data Processing) 158 159 Reserved Reserved 160 Statutory Gross Receipts (Business) 161 E911 Tax (VoIP) 162 FUSF (VoIP) 163 FUSF 164 Reserved Universal Service Fund (VoIP) Communications Service Tax (Cable) 165 166 167 Municipal Right of Way (Cable) 168 Network Access Fee – Interstate 169 FCC Regulatory Fee (Wireline) DESCRIPTION A specific district tax on data processing services that supports a public improvement program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports a development program. This district can overlap county and local jurisdictions. A specific district tax on data processing services that supports a transportation program. This district can overlap county and local jurisdictions. Surcharge to fund the payphone tariff enforcement program. District taxes are taxes associated with a particular district. Typically this is a school district; however it could be a redevelopment, sports, entertainment or some other type of district. Reserved Reserved Tax based upon the gross receipts of one or more transaction and service type combinations. This tax type is returned when there is a difference between the business rate and other rates. This tax is used to fund emergency 911 systems. This tax type applies in jurisdictions that have enacted E911 charges specifically for VoIP service. Similar to tax type 18 (Fed USF Combined High Cost and School) but applies only on interconnected VoIP services. Following the "safe harbor" taxing and remittance standards for interconnected VoIP providers set by the FCC; this tax type is assessed at a rate of sixty four and nine tenths percent (64.9%) of the current Federal USF rate as established by the FCC. This tax type gives interconnected VoIP carriers the ability to report actual interstate/international revenues subject to the FUSF as opposed to using the Safe Harbor percentage. Those who wish to use this method of reporting should override Tax Type 162 to 0% and override Tax Type 163 to the current FUSF rate. Reserved Similar to tax type 13 (State Universal Service Fund), but applies only to interconnected VoIP services. A tax on end users who consume communication services. This tax type applies to cable only. Tax imposed on cable television services to cover the municipal cost in managing and maintaining municipal rights-of-way. This tax type is specific to charges imposed upon residential customers of cable television services. Reserved A fee paid by Interstate Telecommunications Service Providers to fund the Federal Communications Commission. The current rate in the system is the last rate published by the FCC and is based upon 499 revenues from a prior period; therefore it is only an estimate of actual liability. If the user does not wish to pass this fee on, or collects the fee by another mechanism, the rate can be overridden to 0%, or the user can override the rate to match their estimation. A F C T e l e c o m U s e r M a n u a l | 103 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 170 FCC Regulatory Fee (Wireless) 171 172 173 Reserved Statutory Gross Receipts (Video) Utility Users Tax – Lifeline 174 TRS – Long Distance 175 Telecom Relay Surcharge (Wireless) 176 Sales Tax – Senior Citizen 177 Regulatory Cost Charge – Local 180 Regulatory Cost Charge – Intrastate Regulatory Cost Charge – Cable P.U.C. Fee – Cable 181 Provincial Sales Tax 182 183 Reserved Reserved 184 Sales Tax-Manufacturing 185 Use Tax-Manufacturing 186 187 Sales Tax-Motor Vehicles Use Tax-Motor Vehicles 188 Rental Tax 189 Rental Tax-Linen 190 Sales Tax-Vending 178 179 191 192 193 194 195 Rental Tax-Motor Vehicles Sales Tax-Wholesale Sales Tax-Food and Drugs Sales Tax-Food Fur Tax DESCRIPTION A fee paid by Commercial Wireless providers to fund the Federal Communications Commission. The current rate in the system is the last rate published by the FCC and is based upon the number of subscribers from a prior period; therefore it is only an estimate of actual liability. If the user does not wish to pass this fee on, or collects the fee by another mechanism, the rate can be overridden to 0%, or the user can override the rate to match their estimation. Reserved Tax based upon the gross receipts of video services such as cable or satellite. Similar to tax type 16 (Utility Users Tax) but only applies to lifeline customers. Similar to tax type 23 (Telecommunications Relay Service) but applies exclusively to long distance. Similar to Tax Type 23 (Telecom Relay Surcharge), but applied only to wireless. Similar to tax type 1 (Sales Tax) but only applies to Senior Citizens who meet certain age requirements. Fee charged by the applicable regulatory agency to cover that agencies expenses for the upcoming year. This fee covers local phone service only. Same as Regulatory Cost Charge-Local. The fee would cover intrastate calling only. Same as Regulatory Cost Charge-Local. The fee would cover cable services only. Similar to Tax Type 9, but applies to Cable television revenues only. Sales Tax applied in various Canadian Provinces. This Tax Type applies to TOLL services only. Reserved Reserved Refers to a sales tax rate charged on the sale of manufacturing machinery and other manufacturing related items. Refers to a use tax rate charged on the sale of manufacturing machinery and other manufacturing related items. Refers to a sales tax rate charged on the sale of motor vehicles. Refers to a use tax rate charged on the sale of motor vehicles. Tax exclusively on the rental of any item not specifically taxed by another rental tax. Tax covering the rental of linen based supplies. Sales tax that applies to the retail sale of items sold through vending machines. Tax covering the rental of motor vehicles. Sales Tax applying to wholesale transactions. Refers to a rate charged on the sale of food, drugs or beverages. Refers to a rate charged on the sale of food or beverages. Tax charged on the sale of furs. A F C T e l e c o m U s e r M a n u a l | 104 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 196 NAME Privilege TaxManufacturing 197 Lead Acid Battery Fee 198 200 Sales Tax-Motor Fuel Lead Acid Battery FeeLarger Battery Sales Tax-Parking 201 Privilege Tax-Recreation 202 Dry Cleaning Fee 203 White Goods Tax 199 204 205 206 207 Sales Tax-Medical Equipment Electronic Waste Recycling Fee-Small Electronic Waste Recycling Fee-Medium Electronic Waste Recycling Fee-Large 208 Alcoholic Beverage Tax 209 Sales Tax-Alcohol 210 Liquor Drink Tax 211 IN Universal Service Charge. 212 TRS (Paging) 213 ConnectME Fund 214 PA PURTA Surcharge 215 216 ConnectME Fund(VoIP) ConnectME Fund(Cable) 217 TRS VoIP 218 Consumer Council Fee 219 San Diego Underground Conversion Surcharge 220 RSPF Surcharge 221 Reserved DESCRIPTION Tax on the privilege of purchasing items to be used in the manufacturing process. Fee charged to cover the cost involved in the disposing of lead based batteries. Refers to a sales tax rate charged on the sale of motor fuel. Fee charged for batteries over a certain pre-described voltage to cover the cost involved in disposing lead based batteries. Tax on the fee charged for the parking of motor vehicles. Tax charged for recreational events such as sporting events or any similar type of endeavor. Fee charged on the sale of dry cleaning services. A fee applied to the sale of certain appliance and appliance type items to cover the disposal of such items. Sales Tax that applies exclusively to the sale of medical equipment. A fee charged for smaller monitors to cover the disposal of such items. A fee charged for certain sized monitors fitting between certain dimensions to cover the disposal of such items. A fee charged for larger monitors to cover the disposal of such items. Alcoholic Beverages taxed under a different tax in lieu or in addition to sales tax. Refers to a sales tax rate charged on the sale of alcohol. Applies where there is a distinct rate on the sale of mixed drinks ready for on-site consumption. Indiana fee used to fund schools and underserved areas of the state. Similar to Tax Type 23 (Telecommunications Relay Service Surcharge) but only applied to paging. Assessment on state revenues to provide service to underserved areas of Maine. Similar to Tax Type 14 in PA, but this surcharge applies only to intrastate revenues. Similar to Tax Type 213 in ME, but this surcharge applies only to VoIP. Similar to Tax Type 213 in ME, but this surcharge applies only to Cable Similar to Tax Type 23 (Telecommunications Relay Service Surcharge), but applies only to VoIP This fee provides funding for the Consumer Counsel, which represents public utility consumers before the PSC and similar groups in matters concerning public utility regulation. Surcharge imposed to pay for costs associated with undergrounding aerial telephone facilities in San Diego pursuant to the City of San Diego Underground Utilities Procedural Ordinance and the San Diego Surcharge for Underground Conversion Costs. An Oregon Surcharge that funds the Telecommunications Relay Service, Telephone Assistance Program, and the Telecommunications Devices Access Program. Reserved A F C T e l e c o m U s e r M a n u a l | 105 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 222 NAME Reserved 223 CASF 224 License Tax (Cable) 225 Relay Missouri Surcharge FCC Regulatory Fee (VoIP) Municipal Right of Way (Extension) Reserved Carrier Cost Recovery (VoIP) Sales Tax-Video North Carolina Telecommunications Sales Tax 226 228 227 229 230 231 232 Telecommunications Relay Surcharge (Cellular) 233 E-911 Prepaid Wireless 234 Telecommunications Relay Surcharge (Paging) 235 Telecommunications Relay Surcharge (VoIP) 236 TDAP 237 TAP Surcharge 238 Communications Service Tax (Non-Facilities) 239 E-911 (VoIP) Alternate 240 E-911 (VoIP PBX) 241 Utility Users Tax (VoIP) DESCRIPTION Reserved California Advanced Services Fund was created to encourage deployment of broadband facilities for use in provisioning advanced telecommunications service in unserved or underserved areas of California. For other than wireless or VoIP revenue. Similar to Tax Type 8 (License Tax), but applies to providers of cable television services. A Missouri surcharge that funds the State Deaf and Disabled Fund. Similar to Tax Type 169 (FCC Regulatory Fee (Wireline)), but applies to VoIP services. Similar to Tax Type 51 – Right of Way (Residential), but only applies to Centrex and PBX extensions. A sales tax charged on the provision of video services. Tax on privilege of purchasing telecommunication services in North Carolina. Similar to tax type 31 (Fed Telecommunications Relay Service) but applies only on wireless services. This tax type is assessed at the "safe harbor" taxing and remittance standards for cellular providers set by the FCC. Similar to Tax Type 10 (E911 Tax) but applies only on prepaid wireless telecommunications. Similar to tax type 31 (Fed Telecommunications Relay Service) but applies only on paging services. This tax type is assessed at the "safe harbor" taxing and remittance standards for paging providers set by the FCC. Similar to tax type 31 (Fed Telecommunications Relay Service) but applies only on VoIP services. This tax type is assessed at the "safe harbor" taxing and remittance standards for VoIP providers set by the FCC. Program designed to distribute appropriate telecommunications devices so that persons who have a disability may effectively use basic telephone service. Surcharge to provide funding for telecommunications device for the deaf distribution program. Similar to Tax Type 64, but applies only to providers without facilities in the public right-of-way. This tax type gives interconnected VoIP carriers the ability to report actual interstate/international revenues subject to the E-911 as opposed to using the Safe Harbor percentage. Those who wish to use this method of reporting should override Tax Type 161 to 0% and override Tax Type 239 to the current E-911 rate. Similar to Tax Type 10 (E911) but applies only to VoIP PBX Service. Similar to tax type 16 (Utility Users Tax) but applies only to users VoIP services. A F C T e l e c o m U s e r M a n u a l | 106 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 242 Utility Users Tax (VoIPBusiness) 243 Solid Waste Collection Tax Tax on the service of removing solid waste. 244 E-911 (VoIP Business) This tax is used to fund emergency 911 systems. This tax type applies in jurisdictions that have enacted E911 charges specifically for VoIP service. It applies only to a business customer. 245 E-911 (VoIP Nomadic) 246 E-911 Prepaid Wireless (Alternate) 247 Police and Fire Protection Fee 248 San Francisco Access Line Tax 249 San Francisco Access Line Tax (PBX/Trunk Line) 250 San Francisco Access Line Tax (VoIP) 251 San Francisco Access Line Tax (Wireless) 252 San Francisco Access Line Tax (High Cap Trunk) 253 City of San Jose Telephone Line Tax 254 255 256 257 City of San Jose Telephone Line TaxPBX/Trunk Line City of San Jose Telephone Line Tax (VoIP) City of San Jose Telephone Line Tax (Wireless) San Leandro Emerg Com Sys Access Tax DESCRIPTION Similar to tax type 241 (Utility Users Tax (VoIP)) but applies only to VoIP business subscribers. This tax type will be used when different rates exist for utility users based upon business versus residential use. Similar to tax type 10 (E911 ) but applies only to a nomadic VoIP customer. This tax type gives prepaid wireless providers the ability to report E911 charged at the point of sale as opposed to using a fixed amount for every $X of service. Those who wish to use this method of reporting should override Tax Type 233 to $0 and override Tax Type 246 to the current E-911 rate. A tax to fund public safety services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A F C T e l e c o m U s e r M a n u a l | 107 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 258 NAME San Leandro Emerg Com Sys Access Tax (PBX Trunk) 259 San Leandro Emerg Com Sys Access Tax (VoIP) 260 San Leandro Emerg Com Sys Access Tax (Wireless) 261 262 263 264 San Leandro Emerg Com Sys Access Tax-High Cap Trnk Police and Fire Protection Fee (Prepaid) Public Safety Communications Surcharge E-911 Technical Charge 266 Telecom Assistance Svc Fund-High Capacity Trunk Reserved 267 Access Line Tax 268 Access Line Tax (PBX/Trunk Line) 269 Access Line Tax (VoIP) 270 Access Line Tax (Wireless) 271 WI USF 272 Network Access Fee – Interstate 273 Sales Tax – Other 265 274 275 276 277 FCC Regulatory Fee (VoIP Alternate) Excise Tax (Wireless) Reserved Federal Universal Service Fund (Non-billable) DESCRIPTION A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund public safety services. This applies only to prepaid services. A tax to fund public safety services. A charge applied to users of E-911 services that is retained by the carrier to absorb costs incurred for the provision of E-911 service. Similar to Tax Type 34 but applies only to High Capacity Trunks Reserved A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A tax to fund such general fund services as may be determined by the Board of Supervisors including, without limitation, police, fire and emergency services. A fund in the state of Wisconsin to fund subsidizing the cost of telecommunications users in remote locations. Reserved Refers to a separate sales tax rate charged on transactions that do not fall into another existing category. Reserved Similar to Tax Type 5, but applies only to a wireless customer. Reserved Charge imposed by the FCC to fund schools, libraries, rural healthcare support mechanisms, lifeline, link-up and high cost fund. Charges included in this tax type are liabilities of the company, but can not be billed to the end-user. A F C T e l e c o m U s e r M a n u a l | 108 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 278 279 280 NAME Municipal Right of WayHigh Capacity Trunk Education Cess Secondary and Higher Education Cess 281 Utility Users Tax (Video) 282 State USF (VoIP Alternate) 283 TRS (VoIP Business) 284 TRS (Trunk) 285 Deaf and Disabled Fund (Wireless) 286 UUT-Wireless (Business) 287 288 289 290 291 292 Telecommunications Sales Tax-Prepaid CA High Cost Fund A (VoIP Actual) State High Cost Fund (VoIP Actual) Universal Lifeline Telephone Svc Chg (VoIP Actual) Telecommunications Relay Svc Charge (VoIP Actual) CA Teleconnect Fund (VoIP Actual) 293 CASF (VoIP Actual) 294 Oklahoma Sales Tax Business and Occupation Tax (Printing/Publishing) 295 296 Premier Resort Area Tax 297 911 Equalization Surcharge 298 Universal Service Fee 299 NE Universal Service 300 TAP Surcharge Wireless 301 GA Universal Access Fund DESCRIPTION Similar to tax type 51 (Municipal Right of Way (Residential)) but applies only to High Capacity Trunks. A tax levied to collect funds for education. A tax levied to collect funds for secondary and higher education. Similar to Tax Type 16 (Utility Users Tax) but applies only on Video services. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. Similar to Tax Type 23 (Telecommunications Relay Service Surcharge) but applies only to VoIP services for business customers. Similar to Tax Type 23. (Telecommunications Relay Service Surcharge) but applies only to Trunk type services. Similar to Tax Type 20 (State Deaf and Disabled Fund), but applies only to wireless transactions. Similar to Tax Type 16, but applies only to Wireless Business subscribers. Special Sales Tax used for Telecommunications Services applied to prepaid services only. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. This tax type gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. Similar to Tax Type 1 (Sales Tax) but applies only in Oklahoma. Similar to Tax Type 2, but applied only to Printing and Publishing services. Similar to Sales Tax (Tax Type 1) , but applied only in Premier Resort Areas. A surcharge that provides funding for the emergency 911 system. The purpose of the fund depends upon the state, however these are typically used for items such as funding schools or subsidizing the cost of telecommunications users in remote locations. Similar to Tax Type 13. But, it is applied only in the state of Nebraska. Similar to Tax Type 237 (TAP Surcharge) but applied only to wireless services. Similar to Tax Type 13, used in GA to provide funding for the cost of telecommunications in remote areas. A F C T e l e c o m U s e r M a n u a l | 109 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 302 303 304 305 306 307 308 NAME CA High Cost Fund A (Wireless) CA Teleconnect Fund (Wireless) CASF (Wireless) State High Cost Fund (Wireless) PUC Fee (Wireless) Universal Lifeline Telephone Svc Charge (Wireless) NY TAF 310 Prepaid Wireless E911 TRS Surcharge TRS – Prepaid Wireless 311 FUSF (Multi-line) 312 ND Gross Receipts Tax 313 314 315 316 393 NY Sales Tax NY Local Transit Tax NY Local District Tax Sales Tax - Satellite Sales Tax - Commercial Lease Network Access Fee LD – Interstate Network Access Fee LD – Intrastate Tasa de Control 394 Radio Rights Fee 397 Montana Excise Tax Rural Transportation Authority District Tax 309 317 319 320 398 399 400 401 402 409 MHA District Tax Public Safety Improvements District Tax Mass Transit District Tax Metropolitan District Tax VAT (Reduced Rate) DESCRIPTION Similar to Tax Type 60. Used only for wireless service. Similar to Tax Type 21. Used only for wireless service. Similar to Tax Type 223. Used only for wireless service. Similar to Tax Type 19. Used only for wireless service. Similar to Tax Type 9. Used only for wireless service. Similar to Tax Type 22. Used only for wireless service. Targeted Accessibility Fund of New York. Used to ensure proper funding of Lifeline, E 911, Public Interest Pay Phones and TRS. A surcharge for E911 and TRS which is applied to Prepaid Wireless Service. Similar to Tax Type 23, but applied only to Prepaid Wireless services. Federal Universal Service Fund charge imposed by FCC to fund schools, libraries, rural health care support mechanisms, lifeline, link-up, and the high cost fund. This charge is applied upon FCC Subscriber Line Charges applicable to multi-line local phone service. This tax type allows for regulatory compliance with FCC regulations in regards to multi-line accounts. A North Dakota tax based upon the gross receipts of one or more transaction and service type combinations. Similar to Tax Type 1 (Sales Tax) but applied only in New York. Similar to Tax Type 33 (Transit Tax) but applied only in New York. Similar to Tax Type 4 (District Tax) but applied only in New York. Similar to Tax Type 1, but applied only to satellite service. Similar to Tax Type 1, but applied only to commercial leases. Reserved Reserved A telecommunications regulatory fee applied in Argentina. A fee applied per station and per frequency to providers of Mobile Telecommunications. Similar to Excise Tax (Tax Type 5) but applied only in Montana. A specific district tax that supports a Rural Transportation Authority. A specific district tax that supports a Multi-jurisdictional Housing Authority. A specific district tax that supports public safety improvements. A specific district tax that supports Mass Transit. A specific district tax that supports a Metropolitan district. Similar to VAT (Tax Type 65) but applied at a reduced rate. A F C T e l e c o m U s e r M a n u a l | 110 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 410 411 424 NAME Poison Control Fund (Wireless) State Inspection and Supervision Revenue Statement 425 NY MCTD 186c (Wireless) 426 WY USF 427 WY USF (Paging) 428 WY USF (Wireless) 429 FCC Regulatory Fee-Toll Free 430 FCC Regulatory Fee (Satellite) 431 432 433 434 435 Commerce Tax Telecom Assistance Svc Fund - VoIP Telecom Assistance Svc Fund - VoIP High Cap Trnk E-911 (VoIP Nomadic PBX) E-911 Service Fee (NL 911 Bureau) 436 Copyright Fee (Rated) 437 Copyright Fee (Fixed) 438 Utility Tax 439 Audio-Video Service Tax 440 Swachh Bharat Cess DESCRIPTION Similar to Poison Control Fund (Tax Type 25) but applied only to Wireless transactions Reserved Reserved New York Metropolitan Commuter Transportation District (NY MCTD) imposed surcharge based on the taxable wireless telephone services subject to the NY 186e excise tax on telecommunications and said services have occurred solely within the specific NY counties that comprise the NY MCTD. The purpose of the fund depends upon the state; however, these are typically used for items such as funding schools or subsidizing the cost of telecommunications users in remote locations. This USF tax type does not tax the FUSF. Tax similar to tax type 13 (State Universal Service Fund), but applies only on paging telecommunications. This USF tax type does not tax the FUSF. Similar to tax type 13 (State Universal Service Fund), but applies only on wireless telecommunications. This USF tax type does not tax the FUSF. A fee paid by interstate telecommunications providers to fund the Federal Communications Commission. The current rate is the last rate published by the FCC and is based upon the number of subscribers from a prior period and is an estimate of actual liability. A fee paid by Satellite Television Service providers to fund the Federal Communications Commission. The current rate in the system is the last rate published by the FCC and is based upon the number of subscribers from a prior period, therefore it is an estimate of actual liability. If the user does not wish to pass this fee on, or collects the fee by another mechanism, the rate can be overridden to 0%, or the user can override the rate to match their estimation. Tax on Gross Revenue for the privilege of engaging in business. Similar to Tax Type 34, but applies only to VoIP lines. Similar to Tax Type 34, but applies only to VoIP High Capacity Trunks. Similar to Tax Type 10 (E911), but applies only to VoIP Nomadic PBX Service. Newfoundland and Labrador's Provincial E911 Fee. Fee to compensate copyright owners for re-transmission of copyrighted programs. Customer charged as a percentage of revenue. Fee to compensate copyright owners for re-transmission of copyrighted programs. Customer charged as a fixed amount. This is a tax imposed upon utility services. In this case, the utility is telecommunications. This is a tax imposed upon service provided by a multi-channel video or audio service provider. A tax to collect funds for the Swachh Bharat (Clean India) Initiative. A F C T e l e c o m U s e r M a n u a l | 111 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 441 PIS 442 443 COFINS ICMS 444 Federal USF (Centrex) 445 UUT (Prepaid Wireless) 446 Mobile Telephony Services Surcharge 447 448 Access Line Tax (Prepaid Wireless) San Leandro Emerg Com Sys Acc Tax (Ppd Wireless) 449 Rental Tax (Lower Rate) 450 CA High Cost Fund A (VoIP) 451 State High Cost Fund (VoIP) 452 CA Teleconnect Fund (VoIP) 453 CASF (VoIP) 454 Universal Lifeline Telephone Service Charge (VoIP) 455 FUNTTEL 456 FUST 457 Telecommunications Use Tax 458 Krishi Kalyan Cess DESCRIPTION A social contribution tax targeted to finance unemployment insurance and allowance for low paid workers. A contribution levied to finance social security, health and social care. State tax for goods and services. Federal Universal Service Fund charge imposed by FCC to fund schools, libraries, rural health care support mechanisms, lifeline, link-up, and the high cost fund. This charge is applied upon FCC Subscriber Line Charges applicable to Centrex service. This tax type allows for regulatory compliance with FCC regulations in regards to Centrex accounts. Similar to Utility Users Tax (UUT) (Tax Type 16) but only applied to prepaid wireless telecommunications. Mobile Telephony Services (MTS) Surcharge on prepaid wireless telecommunications recovering California PUC expenses on wireless communication services. Similar to Access Line Tax (Tax Type 267) but only applied to prepaid wireless telecommunications. Similar to San Leandro Emerg Com Sys Access Tax (Tax Type 257) but only applied to prepaid wireless telecommunications. Similar to Rental Tax (Tax Type 188) but only applied to certain items at a reduced rate. CA state fund that provides subsidies to specific small independent telephone companies. Said fund is used to minimize any rate disparity of basic telephone service between rural and metropolitan areas. This Tax Type is for reporting VoIP revenues. State high cost funds are used to subsidize the cost of telecommunications users in remote locations. This Tax Type is for reporting VoIP revenues. This fund supports California providers that offer discounts to schools, libraries, health care and community-based organizations with telecommunications services that qualify. This Tax Type is for reporting VoIP revenues. California Advanced Services Fund was created to encourage deployment of broadband facilities for use in provisioning advanced telecommunications service in unserved or underserved areas of California. This Tax Type is for reporting VoIP revenues. This California state charge funds a program that provides basic telephone service to qualifying low income families. This Tax Type is for reporting VoIP revenues. A telecommunications tax levied on providers of telecommunications services to encourage the process of technological innovation. Fund of Universalization of Telecommunication Services imposed to cover costs of universal telecommunications services. It is applied on the gross operating revenue resulting from the provision of telecommunication services. Special use tax used for compliance reporting. A tax to generate funds for financing and promoting agricultural improvement initiatives. A F C T e l e c o m U s e r M a n u a l | 112 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 459 School and Library Fund Surcharge 460 State 911 Charge 461 ITAC Assessment 464 State 911 Charge (Wireless) E-911 (Advanced Services) VAT (Wireless) 465 VAT (Communications) 466 CA TRS 467 CA TRS (Wireless) 468 469 CA PUC Fee Use Tax (Rental) 470 Use Tax (Other) 473 SC USF 474 USF (Prepaid Wireless) 475 E-911 (Lifeline) 476 Utility Tax NF 462 463 482 Telecommunications Sales Tax (Wholesale) E-rate Broadband Program E-rate Broadband Program (Business Line) E-rate Broadband Program (Line) E-rate Broadband Program (Wireless) IGST (Communications) 483 CGST 484 CGST (Communications) 485 SGST 486 SGST (Communications) 477 478 479 480 481 DESCRIPTION Required invoice presentation for the Maine Telecommunications Education Access Fund. This is a state fund used to facilitate internet access and related telecom services to qualified schools and libraries. Provides funding for the state emergency 911 system. The Illinois Telecommunications Access Corporation (ITAC) Assessment assists persons that have a hearing or speech disability. Provides funding for the state emergency 911 system but applies only on wireless telecommunications. Similar to Tax Type 10 (E-911) but applied to Advanced Services. Similar to Tax Type 65 (VAT) but only applied only to wireless services. Similar to Tax Type 65 (VAT) but only applied to communications services. Similar to Tax Type 23 (TRS) but only applied in California. Similar to Tax Type 175 (TRS (Wireless)) but only applied in California. This tax type is assessed at the safe harbor taxing and remittance standards for wireless providers set by the FCC. Similar to Tax Type 9 (PUC Fee) but only applied in California. Similar to Tax Type 49 (Use Tax) but only applied to rental services. Similar to Tax Type 49 (Use Tax) but only applied to transactions that do not fall into another existing tax type. Generally transactions return this tax type if a distinct use tax rate applies in a specific jurisdiction or on a temporary basis. Similar to Tax Type 13 (State USF) but only applied in South Carolina. Similar to Tax Type 13 (State USF) but only applied to prepaid wireless services. Similar to Tax Type 10 (E-911) but only applied to a lifeline customer. Similar to Tax Type 438 (Utility Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Special sales tax used for sales of telecommunications services made on wholesale basis. E-rate Broadband Program to assist schools and public libraries to fund broadband facilities and obtain broadband connectivity. Similar to tax type 478 (E-rate Broadband Program) but applies only to a business local line. Similar to tax type 478 (E-rate Broadband Program) but applies only to applicable local access or local trunk line. Similar to tax type 478 (E-rate Broadband Program) but applies only to wireless telecommunications. Integrated goods and service tax based on consumption but applied only to communications services. National goods and service tax based on consumption within the boundary of a state or territory. Similar to Tax Type 483 (CGST) but applied only to communications services. State goods and service tax based on consumption within the boundary of a state or territory. Similar to Tax Type 485 (SGST) but applied only to communications services. A F C T e l e c o m U s e r M a n u a l | 113 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID 487 488 489 NAME Universal Service Fund (Other) IGST Kentucky Lifeline Surcharge 490 Telecommunications Sales Tax NF 491 Public Safety Communications Surcharge (Prepaid) Statutory Gross Receipts NF 492 DESCRIPTION Similar to Tax Type 13 (State Universal Service Fund) but only applied to transactions that do not fall into another existing tax type. Integrated goods and service tax based on consumption. Kentucky Universal Lifel ine Telephone Service surcharge to provide basic telephone service to qualifying low income families. This is the required invoice presentation. Special Sales Tax used for Telecommunications Services, but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. A tax to fund public safety services but only applied to prepaid wireless service. Similar to Tax Type 14 (Statutory Gross Receipts), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. 493 PUC Franchise Fee (Video) NF Similar to Tax Type 9 (P.U.C. Fee) but only applied to video services. This tax does not include Federal USF or Federal FCC Regulatory Fees in the assessment base. 494 Sales Tax NF 495 District Tax NF 496 Hospital District Tax NF 497 Improvement District Tax NF 498 Mass Transit District Tax NF 499 Metropolitan District Tax NF 500 MHA District Tax NF 501 Public Safety Improvement District Tax NF Rural Transportation Authority District Tax NF Transit Tax NF Similar to Tax Type 1 (Sales Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 4 (District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 96 (Hospital District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 99 (Improvement District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 401 (Mass Transit District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 402 (Metropolitan District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 399 (MHA District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 400 (Public Safety Improvements District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 398 (Rural Transportation Authority District Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 33 (Transit Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Similar to Tax Type 358 (District Consumer Use Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. 502 503 504 District Consumer Use Tax NF A F C T e l e c o m U s e r M a n u a l | 114 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 505 Hospital District Consumer Use Tax NF 506 507 508 509 510 511 512 513 514 515 516 517 518 519 DESCRIPTION Similar to Tax Type 363 (Hospital District Consumer Use Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Improvement District Similar to Tax Type 366 (Improvement District Consumer Use Consumer Use Tax NF Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Mass Transit District Similar to Tax Type 407 (Mass Transit District Consumer Use Consumer Use Tax NF Tax), but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. MHA Consumer Use Similar to Tax Type 405 (MHA Consumer Use Tax), but does not Tax NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. RTA Consumer Use Tax Similar to Tax Type 403 (RTA Consumer Use Tax), but does not NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. Transit Consumer Use Similar to Tax Type 360 (Transit Consumer Use Tax), but does Tax NF not include Federal USF and Federal FCC Regulatory Fees in the assessment base. District Vendor Use Similar to Tax Type 322 (District Vendor Use Tax), but does not Tax NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. Hospital District Similar to Tax Type 327 (Hospital District Vendor Use Tax), but Vendor Use Tax NF does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Improvement District Similar to Tax Type 330 (Improvement District Vendor Use Tax), Vendor Use Tax NF but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. Mass Transit District Similar to Tax Type 408 (Mass Transit District Vendor Use Tax), Vendor Use Tax NF but does not include Federal USF and Federal FCC Regulatory Fees in the assessment base. MHA Vendor Use Tax Similar to Tax Type 406 (MHA Vendor Use Tax), but does not NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. RTA Vendor Use Tax Similar to Tax Type 404 (RTA Vendor Use Tax), but does not NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. Transit Vendor Use Similar to Tax Type 321 (Transit Vendor Use Tax), but does not Tax NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. State USF (VoIP Similar to Tax Type 282 (State USF (VoIP Alternate)) but does not Alternate) NF include Federal USF and Federal FCC Regulatory Fees in the assessment base. E-rate Broadband Similar to Tax Type 478 (E-rate Broadband Program) but gives Program (VoIP the user the ability to report VoIP usage based on actual usage Alternate) rather than using the Safe Harbor percentage. A F C T e l e c o m U s e r M a n u a l | 115 of 401 Copyright 2018 Avalara, Inc. Table 4-14 Tax Types Supported by AFC TAX TYPE ID NAME 520 ConnectME Fund (VoIP Alternate) DESCRIPTION Similar to Tax Type 215 (ConnectME Fund (VoIP) but gives the user the ability to report VoIP usage based on actual usage rather than using the Safe Harbor percentage. For the most current list of Tax Types, refer to the EZTaxTaxType.h file located on the most recent Distribution/Update. For .NET users, the tax types are also available in EZTaxConstants.cs. For Java users, the tax types are also available in TaxType.java. Nexus AFC allows a client application to set the nexus information in multiple methods. • Set the appropriate nexus option in the configuration file (see TM_00548_AFC Configuration Guide). The option specified in the configuration file will automatically be applied to every AFC session as it is initialized. However, this option may be overridden by calling the EZTaxSetNexus API function. • By EZTaxSetNexus API function. • By using a nexus_table at the transaction level. • By EZTaxSetStateNexus API function. General Usage When the engine determines there is no nexus for the taxing jurisdiction of the transaction, no taxes will be returned. If the nexus information has been set by either configuration file or by API call, the transaction level nexus will take precedence. EZTaxSetNexus allows one call to set all nexus information whereas EZTaxSetStateNexus allows the client application to set each state individually. By using EZTaxSetNexus with a null pointer and a nexus count of zero, it will reset the AFC engine to default value of nexus in every state. Nexus is only used within the United States. Exclusions AFC allows a client application to exclude states or countries (and all lower level jurisdictions) from taxation. By using the exclusion option, the client is informing AFC that the specified state or country and all lower jurisdictions are to return no taxes. An excluded state will exempt all state and lower level jurisdiction taxes; however, it will continue to return federal level taxes. An excluded country will exempt all federal and lower level jurisdiction taxes. Exclusions may be accomplished using several methods, such as those listed below: A F C T e l e c o m U s e r M a n u a l | 116 of 401 Copyright 2018 Avalara, Inc. • • • Set the appropriate exclusion option in the configuration file (see TM_00548_AFC Configuration Guide). The option specified in the configuration file will automatically be applied to every AFC session as it is initialized. However, this option may be overridden with other API functions. Use the EZTaxSetStateExclusion API function. Use the EZTaxClearExclusion API function. General Usage When the engine determines that taxes are excluded at the state level for a transaction, only federal level taxes are returned. When the engine determines that taxes are excluded at the federal level, no taxes are returned. EZTaxClearExclusion will clear all exclusion information and return taxes at every level. US Territories US Territory exclusions function like state exclusions and are set and cleared when the federal level USA country code is used without a state or territory. When specified as a state jurisdiction using the two letter state code, ex. ‘USA,VI’, the exclusion behaves like any other state jurisdiction. Country codes for US Territories are deprecated. A F C T e l e c o m U s e r M a n u a l | 117 of 401 Copyright 2018 Avalara, Inc. Utilities Refer to Figure 5-1Figure 5-1. While tax results are typically returned to the billing system using functions, the primary output mechanism of the AFC Engine employs the EZtax Log. The EZTax.log is the link to the outside world. There are twenty-four utilities to choose from, one of which will almost certainly suit your need. When an AFC session is started with the AFC Initialization Function, the Tax Log is opened if the Tax Log parameter is set to true. This allows the AFC Log to capture the binary formatted transaction and tax data generated by the AFC Engine. After exiting the AFC session, the AFC Log becomes available for use. This file should be archived by the user for reruns, recovery and auditing purposes. This is accomplished by simply copying the EZTax.log file to a local storage location (refer to Figure 5-1). In most cases this binary file will be used in the future and nearly all of the utilities will delete the contents of the AFC Log upon job completion. Figure 5-1 AFC Log Data Path If the Billing System is configured to use the AFC Functions and does not require the logging of data, set the first parameter of the AFC Initialization Function to FALSE to disable transaction logging. For instance, if your program is saving or using the tax data returned to it by the tax calculation functions, you would have no need to use the data in the log file for later processing. NOTE: When running AFC in batch fashion the EZTax.log file is always generated. A F C T e l e c o m U s e r M a n u a l | 118 of 401 Copyright 2018 Avalara, Inc. It is imperative that rigid backup practices are established and followed to avoid losing the transaction and data information created during a session. Most utilities will delete the inputted log file when the utility is finished and backups would be required should reruns be needed. Utility Selection AFC provides utilities for reporting and file management. The latest utilities, along with their file formats, are located on the most current update. AFC has conversion utilities available for converting the tax log file to formats used by compliance services. Contact Avalara for information on converting to specific services. Reporting Utilities The reporting utilities are used for customer billing and compliance reporting. They extract specific data from the content rich binary EZtax Log file, commonly sorting the data into a logical and orderly format. The resulting output is a flat file containing just the information required for the specific report, compatible with common software such as spreadsheets and databases. The most common use of this information is to file tax returns. However, other uses may include audit trails, internal tracking and projections. Reporting File Extensions Refer to Table 5-1. The reporting utility output file extensions are customized to indicate the type of information provided within the file. Note that some utilities may produce more than one type of output file. Table 5-1 File Extension Definitions Log File Extension .csf Log File Type Customer Billable amounts File Format .csf .ssf Tax Compliance amounts .ssf .nba Non-billable amounts for compliance .ssf .nca Non-compliance amounts that were billed .ssf .scl Billable amounts combined with non-billable amounts .ssf Note This file is not generated when the [–cl] command line option is used. This file is not generated when the [–cl] command line option is used. If there are no non-billable amounts, this file is not created. This file is generated only if there are transactions in the AFC log that do not require compliance with a jurisdiction. This file is generated when the [-cl] command line option is used. The .scl file is created instead of the .ssf and .nba files. A F C T e l e c o m U s e r M a n u a l | 119 of 401 Copyright 2018 Avalara, Inc. The report file generated by the utility will be formatted as a comma delimited file or fixed field length file depending on the utility used. Refer to the specific utility documentation to determine which formatting will be provided. Some report utilities provide specialized reports with the file name log.rpt. These comma delimited files are modifications of .csf and .ssf report formats. Refer to Figure 5-2. For example, the EZLog_NS.exe utility produces a comma-delimited flat file report with an .ssf extension. When this file is copied into a preformatted (headings and column widths preset) MS Excel spreadsheet the following output is displayed. If the spreadsheet had not been preformatted the titles would not be present and the field widths might vary. Figure 5-2 Sample EZLog_NS spreadsheet Country State USA USA USA USA USA USA USA USA USA USA AL AZ AZ AZ AZ AZ AZ County APACHE APACHE APACHE Locality Tax type Tax level Tax rate Tax amount SPRINGERVILLE 6 7 18 16 1 10 12 1 1 1 0 0 0 1 1 1 1 1 2 1 0.0300 0.0076 0.0314 0.0670 0.0500 0.0125 0.0110 0.0500 0.0270 0.0500 29,881.87 10,116.13 11,145.49 969.97 0.81 9.07 7.98 0.81 0.44 0.71 Gross sales Exempt 996,062.25 1,331,070.00 354,952.00 14,477.20 16.12 725.47 725.47 16.12 16.12 14.11 0 0 0 0 0 0 0 0 0 0 Adj. 0 0 0 0 0 0 0 0 0 0 Taxable Measure 996,062.25 1,331,070.00 354,952.00 14,477.20 16.12 725.47 725.47 16.12 16.12 14.11 Minutes 14,859,213 20,410,578 5,446,827 220,239 245 11,038 11,038 245 245 215 File Management Utilities File management utilities are provided for maintenance purposes, such as combining one or more archived AFC log files or appending one log file to another. Note that AFC provides the asciilog.exe utility for maintenance of AFC log files. It allows the user to view the unsorted log file as readable ASCII text without deleting the file. Specifying a Log File at Run Time The AFC Log file to be submitted to a utility is specified by the log file name in the Filelocs.txt file (EZTax.log by default). However, this file name will be ignored if a different file name is provided in the AFC Initialization Function at session startup. The Filelocs.txt contains the file locations for text file contains all of paths to the AFC Data Base files. Each file in the AFC Data base is represented by one line. The lines in the text file must be in the defined order and all files must be represented. NOTE: Batch utility clients can only use the filelocs.txt file as they will not be using the function programming method. A F C T e l e c o m U s e r M a n u a l | 120 of 401 Copyright 2018 Avalara, Inc. Log.sum File The Log.sum file accumulates tax compliance totals over multiple runs to generate a compilation of the tax totals. It contains a summary of the EZTax.log(s) with the data organized by taxing jurisdictions. Only the EZ* prefix report utilities can be used to generate the log.sum file, which can then be passed as the input to most of the report utilities. This is a turnaround file used for maintaining one smaller log file rather than multiple log files in cases where the customer billing cycle occurs more frequently than the tax compliance cycle. It carries tax compliance information forward until the report is produced. The srt* utilities use this file for input only. WARNING The customer information is lost in the summation of the log.sum. Remember to delete or move this file before running a utility that uses it, if a combined report is not desired. General Tips When Using Utilities AFC is designed to provide optimum flexibility in creating reports. The following tips have been accumulated to assist in making the best use of available options. 1. Combining Log Files 2. If an AFC log file exists when AFC is run, new tax data will be appended to the end of an existing log file (i.e. not placed into a new log file). Also, log files can be combined prior to passing to a utility, although they cannot be split apart after they are merged. 3. The criteria for deciding to combine files is based on how often AFC is run, how big the created log files are and the date cycles of your billing and tax compliance system. Note that most transactions will generate many tax records and that each tax record is either 100 or 168 bytes long, depending on the configuration. 4. Many clients use a new log file for each run of AFC to reduce the complexity introduced when a rerun or restart is required. 5. Most clients will do all of their customer billing processing within their Function programs and use the log file to process only tax compliance data at a later date. 6. Utilities are provided to merge two or more log files into a single log file. This is useful when running reports that reflect the combined data of the individual log files. 7. Primarily the srt* utilities will produce files sorted by the jurisdictional level. 8. AFC provides the asciilog.exe utility for maintenance of AFC log files, allowing the user to create an ASCII version of the log file. 9. Many utilities produce a log.sum file that accumulates tax compliance totals over multiple runs to generate a compilation of the tax totals. 10. The pkzip executable option listed with some utilities is only available with the windows platform. A F C T e l e c o m U s e r M a n u a l | 121 of 401 Copyright 2018 Avalara, Inc. AFC Utilities Table 5-2 Utility Summary Utility Name Function asciilog.exe File Management batchsplit.exe Processing commerge.exe File Management comrp.exe Reporting comptnum.exe Reporting csf20.exe Processing customsort.exe Reporting ezcomprep.exe Reporting ezlog_ns.exe Reporting ezlogcust.exe Reporting ezlogcustios.exe Reporting ezlogcustpts.exe Reporting ezlogcustptslnl.exe Reporting EZTax_20.exe Processing EZTaxappend.exe File Management EZTaxappendf.exe log no tax transactions File Management srtcdf20.exe Reporting srtcdf20p.exe Reporting srtcomcust20.exe Reporting Short Description Dumps the contents of the logfilename.log to an ASCII version of the log file Allows for two output log files. logfilename1.log is the voice data log and logfilename2.log is the data log. Combines the log file with the log.sum (if present) then sorts and combines the data. Data formatted to produce a customer information file called ComRPT.ssf. Reads the log file specified in filelocs.txt and produces comma delimited text files outputfilename.ssf, outputfilename.nca, and outputfilename.nba (or a unified file outputfilename.scl) for tax compliance filing. Reads the log file specified in filelocs.txt. Uses a CDF filename from the command line to name the output files. Produces a comma-delimited file for compliance filing. User selects sort criteria and preferences. Refer to the AFC Custom Sort Utility User Manual for more information on this utility. Produces a comma-delimited file for compliance filing. Sorting and combining is performed at the jurisdictional level. Produces a comma-delimited file for compliance filing. Produces a comma-delimited file for customer billing. Sorting and reporting is done at the customer level. Produces a comma-delimited file for customer billing. Sorting and reporting is done at the customer level. Produces a comma-delimited file for customer billing. Sorting and reporting is done at the customer level. The sort key also contains PCode, optional, and Service Level Number fields. Produces a comma-delimited file for customer billing. Sorting and reporting is done at the customer level. In addition to the PCode, optional, and Service Level Number fields and the number of lines are also included. Refer to batchfile processing for details on the Batch processing method. Combines two log files. Combines multiple log files. This is an option in the EZTax.cfg file, placed here as it may effect the output. Produces a fixed length text file logfilename.ssf for tax compliance filing and a fixed length text file filename.csf for customer billing. Produces a fixed length text file EZTaxlogfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing. Produces a comma delimited text file logfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing. A F C T e l e c o m U s e r M a n u a l | 122 of 401 Copyright 2018 Avalara, Inc. Table 5-2 Utility Summary Utility Name Function srtcomma20.exe Reporting srtcomma20l.exe Reporting srtcomma20ld.exe Reporting srtrev20l.exe Reporting strg.exe Reporting upsize_log.exe File Management Short Description Produces a comma delimited text file logfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing. Produces a comma delimited text file logfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing, separating adjustments. The .csf file is used for import into the billing system to populate customer bills. The comma-delimited .ssf file is sorted at the jurisdictional level. The .ssf file also contains the number of lines. Produces a comma delimited text file logfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing. Produces a comma delimited text file logfilename.ssf for tax compliance filing and a fixed length text file logfilename.csf for customer billing, separating adjustments. The .csf file is used for import into the billing system to populate customer bills. The comma-delimited .ssf file is sorted at the jurisdictional level. The .ssf file also contains the number of lines and the base sale amount. The base sale amount can be included in the csf by command-line option. Produces a fixed length text file logfilename.ssf for tax compliance filing. If the extra logfilename is specified, it is used for appending instead of the log.sum. Converts the short format logfilename1 to a long format log logfilename1. A F C T e l e c o m U s e r M a n u a l | 123 of 401 Copyright 2018 Avalara, Inc. asciilog.exe COMMAND LINE asciilog logfilename.log <+p> <+tc> <+a> <+h> <-csv> <-?> DESCRIPTION The asciilog.exe command dumps the contents of the logfilename.log to an ASCII version of the log file. It does not sort or combine records. It produces a file named logfilename.txt which is a legible version of the logfilename.log data. INPUT Log file: logfilename.log file as defined in the command line and is NOT deleted at end of job. OUTPUT Comma delimited logfilename.txt or logfilename.csv file. FILE FORMAT KEY The contents of the file are highly dependent upon the command line arguments. Use the +h argument to prepend the output with a header row that defines each column. ARGUMENTS (in any order) +p option adds the P-Code to the output, located before the Country for each record +tc option adds the tax category description to the end of each record +a option outputs all available fields +h option prepends the output with a header record -csv option uses .csv as the extension for easier import to other applications -? option displays usage screen and exits NOTES: AFC log is NOT deleted. Also, to have valid values for transaction type and service type, the AFC session that generated the log must have logtransserv=true (ref 7.2.3.8 Log Transaction / Service Types). A F C T e l e c o m U s e r M a n u a l | 124 of 401 Copyright 2018 Avalara, Inc. batchsplit.exe COMMAND LINE batchsplit inputfilename.cdf logfilename1.log logfilename2.log [-dD] DESCRIPTION The batchsplit command is a processing utility designed to accept records submitted in batch fashion. Records are supplied as an ASCII formatted file inputfilename.cdf. Two output log files are produced. logfilename1.log is the voice data log and logfilename2.log is the data log. INPUT Reads the inputfilename.cdf ASCII text file OUTPUT logfilename1 - as defined in the command line. logfilename2 - as defined in the command line. read_err.st - any errors found while editing input file are reported here. billing.log - date/time stamp log (appended to). bureau_log - run totals (appended to). EZTax.sta - status inputfilename.rpt - break down by totals (not for compliance filing). FILE FORMAT KEY Refer to Figure 6-2. ARGUMENTS logfilename1.log - Voice Data Log file name logfilename2.log - Data Log file name d or D - enables the default transaction/service type processing NOTES: If the cust_no field in the cdf file has an "I:" in it, the transaction will go to the data log. If not, the transaction will go to the voice log. The transactionservice.exp file must be in the EZtax working directory. EZTax.log is neither deleted nor created. Filelocs.txt MUST be in the working directory. SAMPLE DATA 678367N 704752N 678367NB20070109+00000005067 678367N 408276N 678367NB20070109-14485457933 678367N 650786N 678367NB20070109+00000000600 0 0 0 0000001000001SI 0000001000001SI 0000001000001SI I: 6444U00000000013CDXXXC 6444U00000003645DLFFFI 6444U00000000002CDLXFC A F C T e l e c o m U s e r M a n u a l | 125 of 401 Copyright 2018 Avalara, Inc. commerge.exe COMMAND LINE commerge DESCRIPTION The commerge.exe command reads the log file specified in filelocs.txt, combines the log file with the log.sum (if present) then sorts and combines the data. INPUT Reads the log file as defined by filelocs.txt or AFC Initialization Function. log.sum – optional input from previous run OUTPUT No output file is produced as this is a log manipulation utility. FILE FORMAT KEY The output file produced is a log file with no format key as this is a log manipulation utility. ARGUMENTS None. NOTES: The log.sum file is created WARNING - EZTax.log is DELETED. Make backups in case reruns are needed. SAMPLE DATA No output file is produced as this is a log manipulation utility. A F C T e l e c o m U s e r M a n u a l | 126 of 401 Copyright 2018 Avalara, Inc. comptnum.exe COMMAND LINE comptnum [-z] outputfilename [-cl] DESCRIPTION The comptnum.exe command reads the log file specified in filelocs.txt and produces comma delimited text files outputfilename.ssf, outputfilename.nca, and outputfilename.nba (or a unified file outputfilename.scl) for tax compliance filing. INPUT Reads the logfilename.log file as defined by filelocs.txt or EZtax Initialization Function. log.sum – optional input from previous run. OUTPUT Comma Delimited outputfilename.ssf (nca, nba, scl) file for tax compliance filing. Sorted and condensed by PCode, Tax Type, Tax Level, Tax Rate FILE FORMAT KEY Country, State, County, Locality, PCode, Tax type, Tax Type Description, Tax level, Tax Level Description, Tax rate, Tax amount, Gross Sale, Exempt, Adjustments, Taxable measure, Minutes Figure 5-3 comptnum SSF File Format Key Description Country State County Locality PCode Tax Type Tax Type Description Tax Level Tax Level Description Tax Rate Tax Amount Gross Sale Exempt Adjustments Taxable Measure Minutes Customer number Type Alpha Alpha Alpha Alpha Numeric Numeric Alpha Numeric Alpha Numeric Numeric Numeric Numeric Numeric Numeric Numeric Alpha A F C T e l e c o m U s e r M a n u a l | 127 of 401 Copyright 2018 Avalara, Inc. ARGUMENTS -z - path to zip executable file*
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