This article provides information about the taxes, fees, and surcharges listed on the monthly billing invoices of MiCloud customers who are located in Canada.
RingCentral is obligated to administer its customer billing in accordance with the laws and regulations set forth by tax authorities and regulatory agencies at all levels of government (i.e., National and Provincial). Various jurisdictions and government agencies assess taxes, fees, and surcharges for telephone-related services and programs such as E911 (Emergency Services) that telecommunications providers like RingCentral are obligated to collect from their customers and remit to these agencies. There are also surcharges that telecommunications providers are permitted, but not required, to pass through to customers such as the Canada Contribution Regime.
The information below provides a representative sample of the most common types of fees and surcharges that are imposed on RingCentral by government agencies and taxing authorities. These are costs that RingCentral must cover to stay in business. RingCentral separately itemizes these taxes, surcharges, and fees on customer invoices rather than include these amounts in higher rates for services. RingCentral applies taxes, fees, or surcharges depending on the types of services subscribed to by its end-user customers. Regulatory fees impacting the telecommunications industry are constantly evolving and are subject to change without notice. If additional or different taxes, surcharges, or fees are imposed on RingCentral in the future, RingCentral will include those taxes, fees, or surcharges in applicable billings. More information is available on the Canada Revenue Agency website.
National and Provincial Taxes and Fees
The following sections provide more detailed information about taxes and fees for customers located in Canada.
Goods and Services Tax (GST)
The GST is a national sales tax that applies to most supplies of goods and services in Canada.
Harmonized Sales Tax (HST)
Generally, the HST applies to the same base of property (i.e., goods and services) as the GST. HST is imposed in provinces that have harmonized their provincial sales tax with the GST.
Provincial Sales Tax (PST)
In some provinces, there may also be a provincial sales tax (PST), a retail sales tax (RST), or a Quebec sales tax (QST).
Provincial 911 Taxes and Fees
Provincial 911 taxes and fees, which are applicable to voice services, support emergency responder systems and are administered by provincial, territorial and municipal governments.
Canada Contribution Regime Fee
The Canadian Radio-Television and Telecommunications Commission introduced a national revenue-based contribution collection mechanism to subsidize residential telephone service in rural and remote parts of Canada. More information is available on the Revenue-based Contribution Regime website.
Regulatory Recovery Fee
The Regulatory Recovery Fee is a monthly per-profile charge. A portion of the Regulatory Recovery Fee offsets certain costs RingCentral incurs in complying with its regulatory obligations including without limitation (1) upkeep of our E911 systems, (2) legal, regulatory, administrative, and other requirements including federal, state, and local reporting and filing requirements, and (3) costs that RingCentral incurs by reporting and managing payments to third party telecommunications services providers. The Regulatory Recovery Fee is not a government-mandated fee or tax.
Telephone Number Storage Fee
The Telephone Number Storage Fee is a monthly charge to cover the storage of unused telephone numbers. Customers will be assessed a monthly fee for each unused telephone number stored beyond a 90% utilization threshold.
For example, if an account has a total of 80 telephone numbers, including active and inactive numbers, but excluding Programming and Toll-Free Numbers, up to 8 inactive numbers (10% of the total) can be present on the account without incurring storage charges. Each inactive telephone number in excess of 10% of the total numbers will incur a monthly storage fee.
