Small Sellers Will Be Exempt From Collecting Prepaid Mobile Telephony Services Surcharge

Monday, October 10th, 2016

 
 
Cell phone with prepaid chip.
Share
Link
California
Services

The California Board of Equalization ("BOE") released guidance on a law change effective January 1, 2017 for sellers of prepaid mobile telephony services ("MTS").

Prepaid wireless phone cards and services are subject to a prepaid MTS surcharge in California. Currently, the surcharge is imposed on purchasers but must be collected by all retail sellers. Beginning January 1, 2017, small sellers will not have to collect the MTS surcharge from their customers. Small sellers are those that sold less than $15,000 in prepaid MTS sales during the previous calendar year. Small sellers do not include telecommunication service suppliers. Small sellers may choose to voluntarily continue to charge and collect the prepaid MTS surcharge on behalf of purchasers. Purchasers will continue to be responsible for the surcharge.

http://www.boe.ca.gov/pdf/l470.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...