Why are we being taxed?
Vonage is obligated to charge appropriate sales and indirect taxes for our API services and to remit these to the correct jurisdictions. Customers will be provided with an invoice which will deliver more clarity on fees and a more seamless customer experience.
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. This service address is to be determined by the user and provided to us. Vonage cannot determine this or provide advice. Please work with your own tax advisors to determine your appropriate service address.
If no service address is provided, Vonage API uses the billing address our customer has provided as their service address. Customers can contact our Support Team using this form 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?
Please refer to Non-US Sales and Indirect Tax Charges.
If you have any further questions, please contact our Support Team using this form.
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 firstname.lastname@example.org 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 our Support Team using this form 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.