You can determine how the IDI platform applies taxes for the services that you are setting up.
Service Tax Class
The Service Tax Class enables you to specify the level of taxes to be applied to the service type that you are setting up, if you selected Service Tax Class as your Usage Tax Method. This also determines whether or not per-line taxes apply.
Example 1 - if you select Local from the Service Tax Class drop-down list, all calls associated with that service type are taxed as local calls, even if they are international calls.
Example 2 - if you select Gas from the Service Tax Class drop-down list, all calls associated with that service type are taxed as gas is taxed, even if they are international phone calls.
You have many Service Tax Class choices, such as Local, 800, Installation and Service, Toll, and Finance Charge. See Tax Class Definitions.
Usage Tax Method
The Usage Tax Method enables you to select the way the IDI platform applies taxes. You have three choices:
Do Not Tax - the service type with this selection is not taxed at all.
Usage Tax Class - taxes are based upon the call type. For example, a local call is charged applicable local taxes and an international call is charged the applicable international taxes.
Service Tax Class - taxes are based upon the Service Tax Class chosen from the drop-down list and are not affected by the call type.
To apply taxes based upon call type:
Select Usage Tax Class from the Usage Tax Method drop-down list. Calls are taxed at the rate in the Taxes database for that call type and location of the subscriber.
To apply taxes based upon the service or product type:
Select Service Tax Class from the Usage Tax Method drop-down list.
Select the type of tax to be applied from the Service Tax Class, such as 900/Entertainment, Local, or Equipment. If Tax on Usage is selected in the Taxes database, all calls are taxed at that rate.