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Common Transaction and Service type mapping scenarios in AvaTax for Communications

AvaTax for Communications uses a system of numbers to represent the Transaction Types and Service Types for the service you wish to tax.  Passing valid combinations of transaction and service type pairs provides AFC part of the information necessary to produce the appropriate taxes for a specific jurisdiction.  This guide will cover some of the common Transaction and Service type mapping scenarios.

What Transaction and Service Type pairs are available?

Mapping an electronic messaging service, IP messaging, texting apps, or digital electronic message service

This is an evolving area with potential open questions about tax.  Depending on your preferences, there are a few options that can work for mapping these services.  If it is in the context of a VoIP account, consider using an enhanced feature.  “Instant messenger” is one of the explicitly listed enhanced features from the FCC.  Software/Remotely Accessed Software will not return telecom taxes and none of these options will return Federal Universal Service Fund.

Transaction Service Name Description
13 622 Cellular/Text Message A fee charged to cellular customers for Text Messaging services.
19, 20, or 59 577 VoIP, VoIPA, or VoIP-Nomadic/Enhanced Features Charges and fees for additional feature charges of VoIP services which are separate from basic transmission services. (Includes services such as voicemail, interactive voice response, audiotext information services, and protocol processing.)
24 636 Software/Remotely Accessed Software A service that provides access and usage of software that remains in the possession of the seller and is remotely accessed by a customer.  If data is manipulated by the software, it is user created.
3 594 Other/Info Svcs-Private Electronic Trans A service providing information to private customers by electronic means.

Mapping Metro Ethernet Service

If a voice channel is included consider using a private line transaction.  If no voice is included a private data transaction may be more appropriate.

Transaction Service Name Description

1

4

Interstate/Private Line

 Interstate or international private line service charge, MRC, and other related service type charges and features.  (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location.  No switching or access to other third party lines.  The private line will cross over a state or country border.)

2

4

Intrastate/Private Line

 Intrastate private line service charge, MRC, and other related service type charges and features.  (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location.  No switching or access to other third party lines.  The private line will be entirely within a state and not cross a state border.)

2

630

Intrastate/Private Line (10% Rule)

Intrastate private line service charge, MRC, and other related service type charges and features.  (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location.  The private line will be entirely within a state and not cross a state border.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes.

7

4

Local/Private Line

Local private line service charge, MRC, and other related service type charges and features. (Charges are for a service in which the service originates at the customer's premises and connects only to a designated termination location.  No switching or access to other third party lines.  The private line will originate and terminate entirely within a single city.  If the private line is charged on a basis of time and distance per call or used to make tolls calls outside of the local calling areas for a set periodic/flat fee charge, then the private line should be mapped as a toll, toll free, or WATS type of service.)

1

27

Interstate/Data

 Interstate or international data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

27

Intrastate/Data

 Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

631

Intrastate/Data (10% Rule)

Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes.

7

27

Local/Data

Charge for the manipulation of user’s data.  This is not to be confused with the transmission of data.

Mapping an End User Common Line Charge

An End User Common Line Charge or Subscriber Line Charge can be mapped as follows:

Transaction Service Name Description

7

20

Local/FCC Subscriber Line Fee

Charge for recovering the cost of connecting the customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.

7 86 Local/FCC Subscriber Line Fee Bundle Charge for recovering the cost of connecting the customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.  This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET).
7 612 Local/FCC Subscriber Line Charge Multi-line Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange for multi-line service.
7 613 Local/FCC Subscriber Line Charge Multi-line Bundle Charge for recovering the cost of connecting a multi-line customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange for multi-line service.  This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET).
7 641 Local/FCC Subscriber Line Charge Centrex Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.  This transaction is intended only for taxation of the Subscriber Line Fee (not the actual fees for Centrex services or the line counts on Centrex systems).
7 642 Local/FCC Subscriber Line Charge Centrex Bundle Charge for recovering the cost of connecting the Centrex customer premise to the local phone network, often referred to as the Federal Subscriber Line Charge (SLC) or the End User Common Line (EUCL) Charge.  The FCC has established per-line caps for primary and secondary line charges.  This charge is not a tax or a governmental assessment, but an authorized charge for the recovery of cost for providing local exchange service.  This transaction is intended only for taxation of the Subscriber Line Fee (not the actual fees for Centrex services or the line counts on Centrex systems).  This service type should be used when passing bundled local service as defined in IRS Notice 2006-50, as it will not return Federal Excise Tax (FET).

Mapping SD WAN (Software Defined Wide Area Network)

SD WAN is an emerging technology with many unanswered tax questions.  A conservative approach may involve treating it as a taxable VPN product like MPLS.  This could involve using a VPN mapping.  Alternatively some might feel this is more appropriately taxed using remotely accessed software or information services.

Transaction Service Name Description

61

585

VPN/Interstate MPLS

Charge for Interstate Virtual Private Network using MPLS.

61

586

VPN/Intrastate MPLS

Charge for Intrastate Virtual Private Network using MPLS.

24

636

Software/Remotely Accessed Software

A service that provides access and usage of software that remains in the possession of the seller and is remotely accessed by a customer.  If data is manipulated by the software, it is user created.

3

594

Other/Info Svcs-Private Electronic Trans

A service providing information to private customers by electronic means.

Mapping SIP Trunk (Session Initiated Protocol Trunk)

A SIP Trunk can have different meanings to different sellers.  If your use of SIP Trunk refers to the actual virtual connection that is carrying voice, it could be mapped using a VoIP Access Charge. If your version refers to the Internet connection, you can consider using an Internet Access Line.  If you are using a VoIP mapping, you will also want to be sure to map the line counts to an appropriate lines-based T/S pair. See the following mapping guide for more detail on mapping lines:

Transaction Service Name Description

19, 20, or 59

6

 VoIP/Access Charge

Basic monthly flat rate for VoIP Service.

5 58 Internet/Access Line A telecommunications line purchased, used, or sold by a provider of Internet access to provide Internet access as long as the charges are distinguishable from other uses.

Mapping DID (Direct Inward Dial)

DID's have both a charge and a line count implication.  See the following Mapping Guidelines for more information about mapping multi-line phone service. 

Mapping cloud computing

Cloud computing can include any of the following:  Data Processing, Information Services, Video Streaming, Web Hosting, Remotely Accessed Software (SaaS), or Timesharing (Data Storage).

Transaction Service Name Description

3

57

Other/Data Processing

Charge for the manipulation of user’s data.  This is not to be confused with the transmission of data.

3 594 Other/Info Svcs-Private Electronic Trans A service providing information to private customers by electronic means.
3 597 Other/Info Svcs-Public Electronic Trans A service providing the passive receipt of information other than financial account or securities trading data to the public by electronic means.
3 639 Other/Streaming Internet Video The purchase of video via the internet.  The purchaser does not retain possession of the video.  
5 29 Internet/Web Hosting Charges for internet web hosting, MRC, and other related service type charges and features.
24 636 Software/Remotely Accessed Software A service that provides access and usage of software that remains in the possession of the seller and is remotely accessed by a customer.  If data is manipulated by the software, it is user created.
25 62 Timesharing/Information Retrieval Access to computer through a remote terminal that allows retrieval of stored data created by the user.
25 646 Timesharing/Information Retrieval (Provider Data) Access to computer through a remote terminal that allows retrieval of stored data created by the service provider.
25 660 Timesharing/No Retrieval-Disaster Recovery Access to a computer through a remote terminal for the purposes of data storage. Retrieval only for disaster recovery.

Mapping Co-location

Co-location can be mapped as follows:

Transaction Service Name Description

3

600

Other/Real Property Rental

Rental of Real Property space.

Crossovers could be mapped to: 

Transaction Service Name Description

1

27

Interstate/Data

 Interstate or international data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

27

Intrastate/Data

 Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

631

Intrastate/Data (10% Rule)

Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes.

7

27

Local/Data

Charge for the manipulation of user’s data.  This is not to be confused with the transmission of data.

Mapping cellular data

If your definition of cellular data means internet access, cellular data can be mapped as follows:

See the following mapping guide for more detail on mapping cellular services: 

Transaction Service Name Description

5

6

Internet/Access Charge

Charges for internet access services, MRC, and other related service type charges and features.  (Both per-minute and flat fee amounts for internet access services will be mapped to this transaction/service type.)

If your definition of cellular data refers to WAN connections, the following options may are available for use:

Transaction Service Name Description

1

27

Interstate/Data

 Interstate or international data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

27

Intrastate/Data

 Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.)

2

631

Intrastate/Data (10% Rule)

Intrastate data service charge, MRC, and other related service type charges and features.  (This combination is appropriate for transmissions that carry data exclusively.  Use Private Line if any component is voice.  This is a recommended mapping for data transmissions carried over DSL, ATM, T-1, frame relay lines and other non-voice services.  This is not for Internet Access provided over DSL lines.) Traffic on this type of line is considered mixed use and interstate traffic exceeds 10 percent; thus the revenues are treated as interstate for Universal Service contribution purposes.

7

27

Local/Data

Charge for the manipulation of user’s data.  This is not to be confused with the transmission of data.

Mapping prepaid and no-contract services

Mapping international services

See the International Mapping Guide for more detail on international jurisdictions and mapping.

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