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VoIP Service Taxable; Support Services Exempt in Missouri
[September 20, 2016]

VoIP Service Taxable; Support Services Exempt in Missouri


DALLAS, Sept. 20, 2016 /PRNewswire/ -- The Missouri Department of Revenue (DOR) issued Letter Ruling No. LR 7735 addressing questions proposed regarding Voice Over Internet Protocol (VoIP) and support services provided by an out-of-state information technology service company to a customer located in Missouri. The letter confirms that VoIP services are indeed taxable services pursuant to Sections 144.020.1(4) and 144.010.1(11) RSMo.  

Section 144.030.2(45) RSMo was enacted during the 2016 legislative session and exempts the following from state and local sales and use taxes:

"[a]ll internet access or the use of internet access regardless of whether the tax is imposed on a provider of internet access or a buyer of internet access." 

Pursuant to Section 144.030.2(45)(c), "internet access" includes the following:

"the purchase use, or sale of communications services, including telecommunications services as defined in section 144.010..."

However, Section 144.030.2(45)(d) stipulates that "nothing in this subdivision be interpreted as an exemption from taxes due on goods or services that were subject to the tax on January 1, 2016." As such, the Missouri DOR concluded that VoIP services continue to be taxable because they were taxable on January 1, 2016.

The letter also addresses managed computer and server updating, managed antivirus service, and managed e-mail services provided by the taxpayer that did not include VoIP services. The DOR confirmed that these services are not included in the enumerated services found in Section 144.020.1 RSMo and are not subject to sales tax.

Lastly, the letter also confirms the taxpayer's responsibility to collect vndor's use tax on computer hardware and software it sells and ships to Missouri customers. Based on the taxpayers activities of selling tangible personal property to customers located in Missouri and allowing its employees to enter Missouri for technical assistance, it meets the nexus requirements of "engaging in business activities within the State" as described in Section 144.605, RSMo.



About Ryan

Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.


Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. (PRNewsFoto/Ryan)

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TECHNICAL INFORMATION CONTACTS:

Jim Kranjc
Principal
Ryan
630.515.0477
[email protected]  

Dustin Davis
Principal
Ryan
972.934.0022
[email protected]

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/voip-service-taxable-support-services-exempt-in-missouri-300331324.html

SOURCE Ryan


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