Tax Calculator: TimelyTaxes™

Telecom tax software and management for service providers.

TimelyTaxesCommunication service providers are required to bill and remit taxes and fees for telecommunication services. These telecom related taxes are complicated for a variety of reasons. One reason is that there are often different federal, state, and local tax rates and regulations. Telecom taxes also get levied differently on various telecommunications services (i.e., equipment sales, service provisioning, or usage). Taxes are based on the type of product you are selling AND the service location.

Telecom Taxation—Simplified, Accelerated, and Built Into TimelyBill

We built TimelyTaxes because external API-driven tax engines frequently produced latency, outages, and inconsistent results in high-volume billing environments.  Our in-house calculation layer is up to 10X faster than external API calls, delivering real-time telecom tax results directly inside TimelyBill. You maintain full control while leveraging licensed telecom tax data updated monthly to reflect current regulatory requirements.

Service providers can manage product tax mappings, define safe-harbor percentages, exempt taxes where applicable, and assign tax code bundles when a product requires multiple tax rules. All tax results are stored at the transaction level within TimelyBill, making research, reporting, and audit preparation straightforward.

Recovery Fees and Surcharges

In addition to regulated taxes, TimelyBill supports configurable Recovery Fees, enabling providers to apply their own cost-recovery or operational surcharges. These fees are calculated separately and reported distinctly for full transparency.

What TimelyTaxes Delivers

  • Built-In Telecom Tax Database
  • Licensed tax data with monthly updates
  • Federal, state, local, and special jurisdiction coverage
  • Detailed taxability and jurisdiction information

Automatic and Accurate Tax Calculation for:

  • Sales tax
  • State gross receipts tax
  • Local telecom taxes
  • Federal Universal Service Fund (USF)
  • State USF fees
  • E911 fees
  • Wireless, VoIP, and IoT-specific surcharges
  • U.S. and international scenarios

Full Operational Control

  • Customer-controlled tax mapping
  • Safe-harbor percentage support
  • Tax exemptions where allowed
  • Custom tax code bundles (multi-rule calculations)
  • Configurable Recovery Fees
  • Customizable invoice tax descriptions
  • Invoice grouping and display options

Built for Audits and Compliance Reporting

  • Transaction-level tax logging
  • Detailed reports for research and audit defense
  • Export-ready data for state and federal filings
  • Optional collaboration with your compliance team to produce required reports

Note: We are not a tax compliance company and do not provide legal, accounting, or tax advisory services. We do have great partner relationships with the top telecom tax compliance companies. Tax compliance companies help you navigate the complex landscape of telecom taxes, such as ensuring compliance with tax laws and providing guidance on minimizing tax liability. These companies can also assist with tax audits and represent you in disputes with tax authorities. Read more on our FAQ page


Download Product Slick: TimelyBill Tax Management (PDF)


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*Some restrictions may apply to larger organizations, please ask us for details.