DIGITAL TAX COMPLIANCE TO BOOST ECONOMY

Challenges

In the current era of digital evolution, telecommunications companies are not limited to being data service providers; rather, they function as orchestrators of a digital ecosystem aligned with diverse consumer demands. The market is saturated with smartphones, wearables, smart home devices, and various Internet of Things (IoT) devices. Telcos, acknowledging this transformative wave, not only address the challenges presented by these devices but also proactively contribute to shaping the digital landscape.

This growth, coupled with heightened competition among telecom providers, has led to the development of multiple subscriber plans encompassing bundled services. Consequently, there is an increase in demand for sophisticated telco billing solutions, essential for managing these services on behalf of Telecom companies and so does Governments which needs tax to be complaint with regulations. Our solutions help both Governments on one side but also telecom companies on the other.

Solutions

  • Digital service providers

Governments would like to control the tax compliance of digital services like

  • VoIP (Voice over Internet Protocol)
  • Transit traffic
  • Cable television service
  • Traditional or fixed telephone
  • Mobile wireless communications services
  • Mobile Virtual Network Operators (MVNOs)
  • Satellite television service
  • Internet Service Providers (ISPs)
  • Mobile money services
  • Providers of services like Netflix, applications on google like Uber, online selling, etc.
  • Types of billing
  • Our robust software will be able to automate the invoice and payment process accurately and in a timely manner whatever types of billing can be.
  • Recurring Billing
  • Recurring billing is a widely adopted model in the telecom industry. It involves charging customers a fixed amount on a regular basis, typically monthly or annually. This billing model is suitable for services with consistent usage or subscription-based offerings. Our billing system easily provides predictable revenue streams to the Government or Telecoms and automates the invoicing and payment processes.

2. Usage-Based Billing

  • The solution can calculate and invoice users or telecom based on the amount of service consumed. It is possible to track usage metrics, generate detailed reports, and integrate with other systems to facilitate invoicing automation
  • 3. Tiered Billing 
  • The most challenging billing and invoicing is Tiered Billing and invoicing as involves different service levels or packages with varying features and pricing. The solution can handle this complex situation of pricing structures and automate the invoicing process. On the side of Telecom, the solution can easily manage multiple users and generate accurate invoices for each customer.
  • Though Telecom can choose different models of billing, XP Tax Engine will adapt and assist both Telecom and the Government to improve compliance and quality of service.
  •  Common Telcom Billing Systems are Prepaid and Postpaid. In both situations, invoicing will include voice calls (domestic and international), data usage, messages, and additional services availed
  • 3. VAT billing and invoicing:
  • The solution will allow Governments to invoice accurately and in real time even in situation of more advanced and complex billing systems of telecom by consolidating multiple services of users into a single invoice as VAT.
  • What’s the method to calculate tax
  • There are important steps necessary to calculate accurately the following the existing regulations.
  • Data Collection & Aggregation
  • Gathering service usage files or data as detailed as possible like message transactions, CDRs, bandwidth, per-use, etc. which translate text messaging, voice calls, internet data usage, mobile money transactions, etc..
  • Data Importing: Once collected, this usage data is securely imported into the billing typically via secure FTP. During this process, each service type, whether it’s local calls, long-distance calls, or on-network services, is carefully categorized to ensure accurate billing according to the specific rates and rules of each service type.

  • Call Rating and Charge Calculation:
  • Our system consists of applying charges based on a pre-defined rate deck through a pre-established comprehensive set of billing parameters of telecom companies.
  • Resource Utilization Analysis:Calculating charges based on predefined rate decks and applicable taxes.
  • Matching each CDR with the originating phone number to identify the customer and determine pricing to apply. This process ensures each call is rated accurately, reflecting the appropriate cost. The received call data is rated based on customizable telecom plans, allowing for varied charges based on call types and overages. Our flexible rating engine handles all types of telecom usage, including minutes used, overages, bundles, toll-free, long-distance, international, and SMS.

The CDR contents include:

  • Phone number dialed
  • The originating phone number (used to identify the customer)
  • Duration of call
  • Date and time of the call
  • User defined calling plans and types
    • Local, intralata, on-network, etc.
  • Connection charges
  • Weekend / Holiday rates
  • Minimum billable connection times
  • Configurable call increments
  • Free local minutes
  • Free minutes based on definable call groups
  • Call rounding options (up, down, round)
  • Minimum calling charges
  • Maximum calling charges
  • Option to fix plans to specific products
  • Supports copying, importing and exporting call plan data to CSV
  • Location descriptions are overridable
  • Time or bandwidth rating
  • Rating by bandwidth up and down
  • Free bandwidth plans

The Rate deck contents include:

  • Connection charges
  • Minimum billable connection times
  • Configurable call increments
  • Call rounding options (up, down, round)
  • Minimum and maximum calling charges
  1. Billing & Invoice Generation 
  2. Pricing: This step involves determining the final charges for each customer. It includes the critical task of rounding off amounts by the company’s billing policies.
  • Ongoing Charges: The system calculates various types of charges. This includes recurring charges, which are regular fees like monthly plan costs, and non-recurring charges, such as one-time setup fees. Additionally, this stage involves calculating applicable taxes and applying any eligible discounts.
  • Invoice Design: This involves creating detailed and clear invoices, breaking down all charges, services, and fees.

Our invoice contains explanation and details to understand how the telecom invoices submitted to the Government get calculated such as:

  • Invoice formatting (profile and template)
  • Contact information
  • Custom messaging, with promotions, announcements etc.
  • Frequency of bills with specific dates
  • Summary of telecom charges, services and fees
  • Detailed descriptions of all charges, services and fees
  • One-time charges, recurring charges, and taxes
  • Detailed usage/call history, or summary reports
  1. Invoice Transmission 
  • The billing software efficiently delivers invoices to Government in various formats – via email, in printed form, or as a PDF. Additionally, customers have the convenience of accessing their invoice data through an online portal, where they can easily search for and download their billing information.
  • The system can also handle different payment methods seamlessly and synchronizes all balances with your systems to simplifying the financial reconciliation process.
  • Adjustments & Refunds 

Occasionally, adjustments or refunds are necessary if invoicing from Government and Telco does not match. The billing system manages these processes, allowing MSPs and telecom service providers to make adjustments or gets refunds as required. This flexibility ensures accurate billing records and maintains customer trust. 

  • Reporting & Analytics 

Reporting and analytics are vital for tracking billing performance. Service providers generate reports that offer insights into revenue, outstanding balances, payment trends, and billing cycle efficiency. Analyzing these reports helps identify trends, optimize billing operations, and enhance customer satisfaction.

Robust reporting and analytics tools generate detailed reports, offering insights into revenue trends, outstanding balances, payment trends, and billing cycle efficiency. These insights help optimize operations and enhance Government satisfaction.

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