When does this change take effect?
The new service address-based taxes take effect July 1, 2025. The consolidated billing statement showing new taxes for the month of July is available starting August 1, 2025.
Why do I have to pay taxes?
Telecommunications services are regulated at the federal, state, and local municipality levels, which require funding resources that are collected via taxes.
Are there any Flowroute services or products exempt from taxes?
No products are exempt from taxes.
What is CCRF?
The Carrier Cost Recovery Fee (CCRF) is used to defray the costs of surcharges and other regulatory compliance costs incurred by the Company in conjunction with the sale and purchase of telecommunications.
Why am I still required to pay CCRF despite the implementation of new taxes?
State, county, city, and similar taxes will be assessed at specific taxation rates. Federal surcharges and other regulatory compliance costs will still be recovered via CCRF which is reduced from 15% to 3.36% for USA and Canada.
How do new taxes impact my view of CDRs?
Taxes will not be displayed in Flowroute CDRs, but CCRF charges will still be displayed there. You can view taxes on voice products through the monthly consolidated statement.
What other fees am I paying?
You might incur the following fees and surcharges:
Admin fee - Please refer to this KB article for the details.
Messaging passthrough fees and surcharges - Please refer to this page for more details.
E911 Line Fee - This fee might be applied to E911 enabled DIDs. This article explains it in detail and it also explains the difference between E911 Line Fee and E911 MRC charges. This is a subject to change in the future.
Unprovisioned E911 Connect Fee - A 911 request from a DID number that’s missing an associated E911 address will incur a charge of $95 for each request. Further details are provided in this KB article.
Do I need to pay taxes if I am outside the US?
Customers located in Canada are subject to Canadian tax regulations. Customers outside of the USA or Canada are required to pay a 15% flat rate CCRF regardless of the service address of the company or country of incorporation.
Is a non-profit company exempt from paying taxes on a prepaid account?
If you think your non-profit organization qualifies for an exemption from telecommunications taxes, please reach out to us at exemptions@flowroute.com. Our team will help you determine your eligibility and guide you through the necessary paperwork.
When are taxes deducted from my account?
Daily Deductions: Usage taxes are calculated and deducted from your account balance every night (UTC).
Monthly Deductions: Monthly Recurring Charges (MRC) and their associated taxes are calculated and applied on the 1st of each month.
Where can I view a breakdown of the taxes on my account?
The detailed breakdown of all taxes is available in your consolidated billing statement, beginning on page 3. You can view and download your statements in Flowroute Manage Portal.
Why is it that my CDRs and statements do not always match?
CDR records can't accurately reconcile monthly bills, because they lack tax information. Additionally, exported CDR reports won't match the exact times used for calculating monthly statement usage.
What changes are made to the Flowroute statement?
The consolidated billing statement lists all monthly transactional fees, taxes, and surcharges in a single document. Please see this article which covers additional details for consolidated billing statements. You may also reference this legacy article on how Flowroute billing previously functioned, prior to July 1.
How will this change affect resellers?
All Flowroute accounts, including those sold through resellers, are subject to taxation. Resellers who remit telecommunications taxes directly to the IRS may contact us via email at exemptions@flowroute.com to request information on exemption requirements and the necessary documentation.
What happens if I don’t have a valid service address?
If your account doesn’t have a validated address, such as when the address is missing, improperly formatted, or listed as a PO box, taxes will be applied using the default rate. To ensure accurate tax calculation, update your account with a valid address as soon as possible.