Tennessee Taxes Cloud Collaboration Services

Thursday, October 16th, 2014

 
 
An icon representing cloud service.
Share
Link
Tennessee
General

The Tennessee Department of Revenue recently released a ruling that cloud collaboration services were taxable telecommunications services.

The taxpayer provided a "cloud collaboration service" that supplemented and supported a customer's telecommunications equipment and services. The taxpayer's service processed and routed the customer's communications, such as phone calls, audio and web conferences, and voice and video messaging.

Tennessee taxes the furnishing of intrastate telecommunications services. A "telecommunications service" is the "electronic transmission, conveyance, or routing of voice, data, audio, video, or any other information signals to a point, or between or among points." It includes services where a computer processing application acts on the form, code, or protocol of the transmission. Ancillary services are also subject to tax. An "ancillary service" is a service that is associated with or incidental to the provision of telecommunications services.

The taxpayer's services were taxable telecommunications services and ancillary services. The taxpayer provided customers with voice, video, presence, and mobility capability in conjunction with the customers' other telecommunications services such as phone service. Because the taxpayer routed voice, data, audio, and other information between or among points, it sold telecommunications services.

http://www.state.tn.us/revenue/rulings/sales/14-05.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Service Repairs to Petroleum Storage Tanks Exempt in...

Friday, January 18th, 2019 -Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable. ...

Nevada Exempts Feminine Hygiene Products in 2019

Wednesday, January 16th, 2019 -Last year, Nevada voters approved via ballot measure changes to the Sales and Use Tax Act of 1955. Voters amen...

Cleaning of Beer-Tap Lines Not Taxable in Ohio

Monday, January 14th, 2019 -The Supreme Court of Ohio recently ruled that cleaning beer-tap lines is not taxable. The taxpayer was...

Louisiana Court of Appeals Finds Marketplace Facilitators...

Friday, January 11th, 2019 -The Louisiana Court of Appeals has recently addressed the sales tax liability of marketplace facilitators. A c...

Iowa Supreme Court Determines Taxable Carpentry Services...

Wednesday, January 9th, 2019 -The Iowa Supreme Court has recently addressed the taxability of various installation services. The taxpayer wa...

Tax Applies to Metallurgical Coke in Illinois

Monday, January 7th, 2019 -Illinois recently ruled that use tax was due on purchases of metallurgical coke. The taxpayer was a business t...