You have probably hired an internet or telephone service and with it you are entitled to email accounts, document storage, navigation protection, unlimited social networks, among many others. These additional services are called added value service (sva).
According to Anatel , the added value service (SVA) is any and any service assistant to telecommunications activity. In turn, telecommunication companies are fixed telephone , fixed internet , telephony and mobile internet .
Generally implemented as extra services for telephone and internet providers, it is functioning to offer additional customer experiences, such as antivirus , video and audio streaming , unlimited access to social networks, among many others.
SVA's can serve for various strategies in telecommunications companies, as they do not fit the General Law of Telecommunications ( No. 9,472/1997 ), as they are experiences that go beyond the voice or internet service offered, and enable various differentiation strategies to competitors, such as creating new service packages , special offers , Churn reduction , among many others.
With the arrival of the pandemic, the use of SVA's by internet providers increased considerably. Much of the population is looking for new forms of distraction and leisure in their homes, making streaming and social networking services, relevant factors for hiring internet plans with additional services of this type.
Tax incidences on SVA
One of the major factors of searching for SVA's telecommunications services is due to small tax loads on the added value service.
Unlike the Communication and Multimedia Service (SCM), SVA taxation is governed only by the federal agency, and does not respond to state tax rules, ICMS . That is, the tax amounts paid by the SVAs are considerably lower than those paid by SCM, being attractive to reduce costs to telecommunications companies.
In addition to the benefits promoted to the subscriber, as well as the provider, for strategic reasons for sale and loyalty, SVAs can also be beneficial in the factor revenue and profitability for the company.
What is the difference between SVA and SCM?
The discussion about the difference between SVA (Added Value Service) and SCM (Multimedia Communication Service) is still present between telecommunication companies managers.
The concern is due to the fact that the separation of services in 2017 caused a stir because, according to Anatel, the tax burden on services would be different, but it was not yet possible to define exactly if an added service would receive the definition of SVA or SCM.
However, legal advisors to insert services to subscribers' invoices were hired at the time, aiming to have no problems with Anatel.
With the most mature and known change, it is meant by Multimedia Communication Service (SCM), according to the General Telecommunications Law, a set of activities that facilitates the provision of transmission, issuance or reception of information, being regulated and supervised by Anatel, according to the powers given by the Ministry of Communications . Regarding tax incidences, SCM responds to state tax rules of the Tax on Circulation of Goods and Services (ICMS).
The added value 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 recovery of information.
SVA is not a telecommunications service, so it is considered a SCM support service .
The SVA is not regulated by Anatel, it does not need its authorization and only focuses on federal taxes. Because of the lower taxation than SCM, SVA becomes so attractive and used by Internet Service Providers (ISP).
To finish
I hope this article has collaborated to answer your questions about the added value service, and you may serve as a way to choose a suitable SVA for your business.
Remember: STAs can bring great benefits when implemented in the right way and thought strategically. Be aware of regulations and taxes, so that you have no tax problems.
In the coming days we will make several articles available on the subject, with some topics such as:
- Why do providers are looking for SVAs?
- What are the benefits of having an SVA?
- How to choose a fiscal audit for sva
- SVA Package Billing Strategy
- Useful Svas Tips for Internet Provider (ISP)
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To the next!
