When selling bundled service packages, it’s important to be able to unbundle packages for tax purposes in order to charge the lowest, legal tax on the bundle. The issue is tax containment laws, which often state that if a bundle is sold and the price for each line item is not split out on the bill, then all the services are taxed as telephony. This is an issue when non-taxed services, like IP access, are bundled into telecom packages.
SureTax® Revenue Allocation Manager (RAM) works as a bundling manager, acting according to statue and jurisdiction. Revenue can be allocated and bundled, separating non-taxable charges from telecom charges to drive the desired tax outcomes. SureTax RAM allows a client to assign values to services within the bundle by fixed dollar amount, by percentage, or both.
For example, with SureTax® RAM, a marketer selling a triple–play bundle can break out the voice service first as a fixed dollar amount, then allocate the remaining bundle by a percentage of the overall invoice.
SureTax® RAM makes adjustments quick and easy. Changing a bundle allocation by state or performing “What if” scenarios can be done instantaneously. SureTax® RAM can be used for a breadth of situations including allocating blocks of use charges into Intra – Interstate components, or tracking user based pass-through taxes and provider based non-pass through taxes.
If you have questions or would like to learn more about SureTax®,
Contact Us and we will quickly respond to your inquiry.