You have probably already contracted an internet or telephone service and with it you are entitled to email accounts, document storage, browsing protection, unlimited social networks, among many others. These additional services are called Value Added Service (VAS).
According to Anatel , the Value Added Service (SVA) is any and all provision of auxiliary services to telecommunications activities. In turn, telecommunications companies include fixed telephony , fixed internet , telephony and mobile internet .
Generally implemented as extra services in telephone and internet providers, their function is to offer additional experiences to the customer, such as antivirus , video and audio streaming , unlimited access to social networks, among many others.
SVA's can be used for different strategies in telecommunications companies, as they do not fit into the General Telecommunications Law ( No. 9,472/1997 ), as they are experiences that go beyond the voice or internet service offered, in addition to enabling different differentiation strategies to competitors, such as creating new service packages , special offers , reducing churn , among many others.
With the arrival of the pandemic, the use of VASs by internet providers increased considerably. A large part of the population is looking for new forms of distraction and leisure in their homes, making streaming services and social networks relevant factors for purchasing internet plans with additional services of this type.
Tax incidences on SVA
One of the major factors in the demand for telecommunications services by VASs is due to the small tax burden on the value-added service.
Unlike the Communication and Multimedia Service (SCM), SVA taxation is governed only by the federal body, and does not respond to state tax rules, the ICMS . In other words, the tax amounts paid by SVAs are considerably lower than those paid by SCM, making it attractive to reduce costs for telecommunications companies.
In addition to the benefits promoted to the subscriber, and also to the provider, for strategic sales and loyalty reasons, SVAs can also be beneficial in terms of revenue and profitability for the company.
What is the difference between SVA and SCM?
The discussion about the difference between SVA (Value Added Service) and SCM (Multimedia Communication Service) is still present among managers of telecommunications companies.
The concern is due to the fact that the separation of services in 2017 caused an uproar because, according to Anatel, the tax burden on services would be different, but it was still not possible to define exactly whether an added service would receive the definition of SVA or SCM.
However, legal advisors to insert services into subscribers' invoices were hired at the time, aiming to avoid problems with Anatel.
With the most mature and well-known change, Multimedia Communication Service (SCM), according to the General Telecommunications Law, is a set of activities that facilitate the provision of transmission, emission or reception of information, being regulated and supervised by the Anatel, in accordance with the powers given by the Ministry of Communications . Regarding tax incidences, the SCM responds to the state tax rules of the Tax on Circulation of Goods and Services (ICMS).
The Value Added Service (SVA), defined in article 61 of the LGT , is the activity that adds to a telecommunications service that supports it, new utilities related to access, storage, presentation, movement or retrieval of information.
SVA is not a telecommunications service, therefore it is considered a support service for SCM .
The SVA is not regulated by Anatel, does not require its authorization and only applies to federal taxes. Due to lower taxation than SCM, SVA becomes so attractive and used by Internet Service Providers (ISP).
To finish
I hope this article has helped to resolve your doubts about the Value Added Service, and perhaps it can serve as a path to choosing a suitable VAS for your company.
Remember: SVAs can bring great benefits when implemented correctly and thought of strategically. Pay attention to regulations and taxes, so you don't have tax problems.
In the coming days we will make several articles available on the subject, with some topics such as:
- Why do providers look for SVAs?
- What are the benefits of having an SVA?
- How to choose a tax audit for SVA
- Billing strategy with SVA packages
- Useful SVAs tips for internet service providers (ISP)
If you prefer, you can subscribe to our Newsletter , where we will send you news and materials about VAS, technology and internet security.
To the next!
