AvaTax for Communications (AFC) is a purpose-built tax engine that calculates communications taxes and fees, including USF, E911, TRS, and tiered pricing, in real time across more than 60,000 North American jurisdictions, going beyond standard sales tax to handle the industry's most complex tax scenarios.
AvaTax for Communications (AFC) is Avalara's purpose-built communications tax calculation engine, a separate engine from AvaTax, designed specifically to handle the tax complexity of telecom, VoIP, streaming, cable, satellite TV, and other connected services. AFC connects to your existing billing or ERP system to determine and calculate taxes and fees for traditional telecommunications, VoIP, internet services, cable and satellite TV, and other communications services, applying up-to-date tax rules across more than 70,000 jurisdictions. Unlike general sales tax engines, AFC natively handles Universal Service Fund (USF), Enhanced 911 (E911), Telecommunications Relay Service (TRS) fees, and tiered pricing where tax rates vary based on usage volume or service tier rather than a flat rate. AFC also goes beyond communications tax to handle sales and use tax, making it a true multi-tax engine for communications businesses.
Getting Started
After subscribing through AWS Marketplace, choose the integration option that fits your billing environment. For most customers, Avalara recommends the SaaS Pro REST API for real-time tax calculation integrated directly into your billing application. Customers with lower transaction volumes or batch-processing needs can use SaaS Standard, a file-based service where you submit transaction data via FTP (for example, CSV files) and receive processed tax results in return. Onboarding follows a guided sequence: Avalara provisions your AFC Sandbox environment, an implementation consultant schedules a kick-off call, you connect to the AFC tax engine using a prebuilt or custom connector, test transactions in Sandbox, and then configure your Production account before go-live.
The Avalara for Communications Product Family
Why Choose AvaTax for Communications?
Purpose-Built, Not Adapted - Communications tax is a separate tax regime from sales and use tax. Traditional sales tax engines don't support communications-specific charges like USF, E911, and TRS, AFC was designed from the ground up for this complexity.
Street-Level Precision - AFC's Geo for Communications feature provides street-level tax precision, assigning the taxing jurisdiction by latitude/longitude rather than ZIP code.
Exemption Accuracy Competitors Can't Match - In communications tax, an exemption certificate doesn't cover every tax on a transaction, it applies at the tax-type level. AFC's native integration with ECM applies exemptions correctly, in real time, at the right level, closing the most common cause of communications audit failure.
Continuous Monitoring - Avalara's communications tax team monitors relevant statutes, regulatory rules, and rate changes, and updates the SaaS solution regularly so manual software maintenance becomes a thing of the past.
Superior Flexibility - AFC easily handles complex calculations while allowing you to override rules if necessary, create special tax bundles, and configure custom business logic for non-standard billing structures.
A Connected Compliance Workflow - Calculation, returns, and exemption management run in one connected operating model, eliminating manual handoffs between systems and reconciliation burden between vendors.
Ideal For
Telecom, VoIP, and cable/satellite TV providers
Streaming media and digital services companies
IoT device manufacturers and cellular/connectivity providers
CPaaS, UCaaS, and embedded communications platforms
Companies that no longer consider themselves "telecommunications companies" but have inherited communications tax obligations through streaming, messaging, wireless, or SaaS offerings
Frequently Asked Questions
How is AvaTax for Communications different from AvaTax? AFC is a separate, purpose-built communications tax enginen not the same product as AvaTax, which handles general sales and use tax. AFC and AvaTax use different integrations and should not be used interchangeably, though AFC also supports sales and use tax for communications businesses with mixed tax needs.
Which integration option should I choose? For most customers, Avalara recommends the SaaS Pro REST API for real-time tax calculation. SaaS Standard is better suited for batch processing, backfilling data, or simpler integrations that don't require immediate responses.
What communications-specific taxes and fees does AFC calculate? AFC calculates USF, E911, TRS fees, utility user tax (UUT), communications services tax (CST), and other federal, state, and local communications charges, in addition to sales and use tax where applicable.
Use of Avalara's Services
Use of Avalara's Services are governed by the Avalara Service Terms and Conditions located at https://www.avalara.com/terms.
Highlights
Purpose-Built for Communications Tax Complexity Across 60,000+ Jurisdictions - AFC calculates USF, E911, TRS, tiered pricing, and other communications-specific charges that general sales tax engines cannot handle correctly out of the box, across more than 60,000 North American jurisdictions and 70,000+ jurisdictions globally.
Real-Time Precision with Street-Level Geo Accuracy - AFC's Geo for Communications feature assigns the taxing jurisdiction by latitude/longitude for street-level tax precision, connecting to billing platforms or ERP systems via prebuilt connector or custom API integration.
A Connected Compliance Workflow - Calculation, Returns, and Exemptions in One Platform - AFC's native integration with Exemption Certificate Management and Returns for Communications eliminates manual handoffs and reconciliation burden, applying exemptions at the correct tax-type level in real time to close the most common cause of communications audit failure.
AWS Marketplace now accepts line of credit payments through the PNC Vendor Finance program. This program is available to select AWS customers in the US, excluding NV, NC, ND, TN, & VT.
Pricing is based on the duration and terms of your contract with the vendor, and additional usage. You pay upfront or in installments according to your contract terms with the vendor. This entitles you to a specified quantity of use for the contract duration. Usage-based pricing is in effect for overages or additional usage not covered in the contract. These charges are applied on top of the contract price. If you choose not to renew or replace your contract before the contract end date, access to your entitlements will expire.
Additional AWS infrastructure costs may apply. Use the AWS Pricing Calculator to estimate your infrastructure costs.
This contract buys the Avalara for Communications tax determination engine, which calculates sales and use tax for telecom and VoIP transactions. You commit to the engine under a fixed contract term. Pricing ties to the volume of tax-calculation transactions you process. The Overage per contract dimension covers usage beyond what your committed contract includes. You pay the base engine rate for your committed volume, then the overage rate applies to transactions that exceed it. Both dimensions work together: the engine sets your baseline, and overage handles added usage within the same contract.
Top-of-mind questions for buyers
What counts as one transaction for billing on the tax determination engine?
One transaction equals one tax-calculation API call. A single invoice counts as one transaction no matter how many line items it carries, so a 1-line invoice and a 200-line invoice each count as one. This defines the volume your committed contract and overage charges measure.
What happens if my transaction volume exceeds my committed contract amount?
The engine sets your baseline for committed volume. When you process transactions beyond that amount, the Overage per contract rate applies to the extra transactions. The overage charge is added on top of your base engine charge within the same contract term.
Which charge drives my bill — the engine or the overage?
The Avalara for Communications engine charge covers your committed transaction volume and forms the base of your bill. The Overage per contract charge applies only when you exceed that committed volume. Both appear on the same contract, so overage adds to the base rather than replacing it.
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Vendor refund policy
Payments for the Avalara: Tax Compliance Automation are non-refundable unless otherwise specified in the applicable order or agreement.
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