As we previously have reported, all providers of telecommunications services (regardless of whether they are domestic or international carriers) that provide international outbound services to the general public from the United States to any foreign destination must obtain an International Section 214 license from the Federal Communications Commission (“FCC”) before offering or providing such services. Whether you resell the telecommunications services of another company or provide services using your own facilities, you are required to obtain International 214 Authorization.
FCC International Section 214 License: Tax Benefits
While acquiring an International Section 214 license is a legal requirement for providers of telecommunications services, it also comes with certain benefits.
Pursuant to certain statutory resale exemptions, resellers may provide their resale certificate and evidence of their 214 license to their respective carrier(s) to receive certain tax exemptions from such carrier(s). This generally amounts to tremendous savings for resellers, as no sales tax will be charged to resellers by their underlying carriers on the purchase of telecommunications services.
On the other hand, resellers should be collecting the appropriate taxes from their respective customers for remittal to applicable governmental authorities.
What is involved in Obtaining a Section 214 License?
As we previously reported, the process for applying for a 214 license is relatively straightforward. It requires an online application and a filing fee of $1,050.00. The FCC processing time takes at least two weeks, but if you qualify for “streamlined” processing, your application may be granted within twenty days.
If you are interested in learning more about this topic, or if you require FCC licensing or that of a state Public Service Commission, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal or tax advice, nor is it a substitute for obtaining legal or tax advice from an attorney or tax advisor. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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