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US Sales and Indirect Tax Charges


Why am I being charged with these taxes now?

To continue to provide you with the exceptional level of service you expect as a Vonage API customer, in January 2020, we updated our billing system and internal processes. These updates provide customers with an updated invoice to provide more clarity on fees and a more seamless customer experience.

Under our previous billing system, we were unable to apply taxes and fees to certain Vonage API products and services. With the updated system in place we are able to apply these taxes and fees, which you see included in your monthly bill since January 1, 2020.

What are Sales and Indirect taxes?

Sales taxes and Indirect taxes are taxes charged on the sale of a product or service. In the US, these taxes may be assessed at the State, County, and Municipal jurisdictional levels. Each jurisdiction categorizes Vonage API products differently and may have different regulations that determine which products and services are subject to Sales or Indirect tax.

How are Sales and Indirect taxes determined?

We have worked closely with third-party tax advisors to determine how our products are taxed.

Indirect taxation of our services is based on the address where Vonage API services are consumed. Given the nature of the product, this is the customer’s main data center location.

Sales and Indirect taxes for Vonage API products are dependent on where the customer consumes them, which is determined by the customer’s service address. As a default, Vonage API uses the billing address our customer has provided as their service address. Customers can send an email to billing@nexmo.com if this address differs from the billing address.

Each US state has its own methods of determining whether taxes are owed for purchasable goods or services and at what rate. A customer must have a US service address in order to be assessed.

What if my service address is located outside the US?

If your billing address is in the US but your service address is in Europe, Vonage API we will not be charging Value Added Tax (VAT), if a VAT number can be obtained. If a VAT number can’t be obtained, contact billing@nexmo.com as we will need to handle this on a case-by-case basis.

In which US states will I be charged Sales tax?

The Company is currently obligated to collect and pay taxes in following US states:

Alaska

Delaware

Massachusetts

New Jersey

Texas

Alabama

Florida

Maryland

New Mexico

Utah

Arkansas

Iowa

Michigan

Nevada

Virginia

Arizona

Illinois

Minnesota

New York

Washington

California

Indiana

Missouri

Ohio

Wisconsin

Colorado

Kansas

North Carolina

Oklahoma

Wyoming

Connecticut

Kentucky

Nebraska

Oregon

 

District of Columbia

Louisiana

New Hampshire

Pennsylvania

 

What if I am a reseller or tax-exempt?

Resellers and tax-exempt customers (schools, governmental bodies, churches, and exclusively charitable organizations) should submit appropriate exemption documentation to taxexemptions@vonage.com for review and approval. Once approved, the billing team will be notified to update the billing data to exempt status.

What if I need more information about this?

Although we’ve taken steps to make these updates as easy as possible, we understand that you may have questions. Contact billing@nexmo.com for further assistance with these questions.

What if I have additional tax questions?

We suggest that you reach out to your personal tax advisor with any additional questions.

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