This article is to provide answers to frequently asked questions regarding the US sales and telecom taxes that may appear on your invoice, based on the products you subscribe to, your location, and the particular rules and obligations of the applicable state and local jurisdictions.
Zoom provides general information regarding sales and telecom taxes with respect to Zoom’s products and the information herein should not be interpreted as tax advice.
This article covers:
- Why am I being charged state taxes?
- What are these new taxes on my invoice?
- What are telecom taxes and fees?
- Why do certain taxes apply only to Zoom Phone?
- Where can I find information specific to OnZoom?
- Who can I talk to if I have additional questions?
Why am I being charged state taxes?
Zoom is required to charge and collect state and local taxes (e.g., sales taxes, gross receipts taxes, and certain telecommunications taxes) from customers in certain states where Zoom either has a physical presence (i.e., employees or office locations) or where Zoom maintains a significant market based on the amount of its sales and/or transactions with customers (subject to state specific rules).
Zoom is not required to collect these state taxes from customers residing in states where Zoom’s services are not subject to state or local taxes, regardless of Zoom’s physical presence or its sales/transaction volume in that particular state. However, it is important to note that customers may still be required to self-report and remit use tax (on purchases) in certain state and local jurisdictions that would subject Zoom’s services to tax, even if Zoom is not required to charge and collect sales tax on the transaction.
When Zoom collects these state taxes, we remit the entire amount to the relevant state taxing authorities on behalf of our customers. The amount and type of tax collected depends on your location, the type of products/services purchased and the particular rules of the state and local jurisdiction.
What are these new taxes on my invoice?
Zoom continues to review the products and services we sell, as well as the nature and extent of its activities in different jurisdictions. Based on such reviews, Zoom will implement tax changes from time to time to stay compliant with all government regulatory and tax requirements. As we determine the future obligations to charge and collect taxes or telecom based charges, we will make every effort to notify you promptly and in advance of any charges appearing on invoices. Please refer to the overview of US State Sales and Telecom Tax for additional information.
What are telecom taxes and fees?
Taxes may be imposed by state, local, and municipal governments on goods and services, including phone services (i.e., telecom). In addition, federal, state and local governments may impose regulatory charges on providers of certain communications or telecommunications services, including interconnected VoIP service like Zoom Phone.
Why do certain taxes apply only to Zoom Phone?
Most states have enacted tax laws that are specific to voice services such as interconnected VoIP. As required or permitted by law, Zoom Phone may be taxed differently than other Zoom services because they are subject to laws that impose state and local telecommunication taxes. Zoom Phone is subject to certain regulatory fees and assessments that apply to interconnected VoIP services. For additional information on these regulatory fees and assessments, please see Federal and State Universal Service Fund (USF) FAQ.
Where can I find tax FAQs specific to OnZoom?
For additional US tax information specific to OnZoom, please refer to the FAQ about United States tax for OnZoom.