Q1: Why am I being charged with these taxes now?
To continue to provide you with the exceptional level of service you expect as a Nexmo customer, we’ve recently updated our billing system and internal processes. These updates will 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 Nexmo products and services. With our updated system in place we are able to apply these taxes and fees, which you will see included in your monthly bill effective January 1, 2020.
Q2: What are Sales and Indirect taxes?
Sales taxes & Indirect taxes are taxes charged on the sale of a product or service. In the U.S., these taxes may be assessed at the State, County, and Municipal jurisdictional levels. Each jurisdiction categorizes Nexmo products differently and may have different regulations that determine which products and services are subject to Sales and/or Indirect tax.
Q3: How are Sales & 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 Nexmo services are consumed. Given the nature of the product, this is the customer’s main data center location.
Sales and Indirect taxes for Nexmo products are dependent on where the customer consumes them, which is determined by the customer’s ‘service address’. As a default, Nexmo 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 U.S. state has its own methods of determining whether taxes are owed for purchasable goods and/or services and at what rate. A customer must have a U.S. service address in order to be assessed.
Q4: What if my service address is located outside the U.S.?
If your billing address is in the U.S. but your service address is in Europe, Nexmo we will not be charging VAT (Value Added Tax), if a VAT number can be obtained. If a VAT number can’t be obtained, please contact billing@nexmo.com as we will need to handle this on a case by case basis.
Q5: In which US states will I be charged Sales tax?
The Company is currently obligated to collect and pay taxes in following U.S. states:
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Alaska |
Delaware |
Massachusetts |
New Jersey |
Texas |
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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 |
Q6: 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.
Q7: 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. Please feel free to contact billing@nexmo.com for further assistance with these questions.
Q8: What if I have additional tax questions?
We suggest that you reach out to your personal tax advisor with any additional questions
