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.

Nevada Exempts Certain Medical Equipment

Monday, June 17th, 2019 -Effective July 1, 2019, Nevada will exempt durable medical equipment, oxygen delivery equipment, and mobility ...

Participatory Sports are Taxable in New York

Friday, June 14th, 2019 -The New York Division of Tax Appeals recently denied a refund claim made by an instructor-led indoor spin clas...

Marketplace Facilitators to Collect Tax in Vermont

Thursday, June 13th, 2019 -Vermont recently passed a bill requiring marketplace facilitators to collect and remit sales tax on retail sal...

Agricultural Rotary Cutter Taxable in Arkansas

Wednesday, June 5th, 2019 -The Arkansas Department of Finance and Administration (DFA) recently determined that a rotary cutter used in t...

Wholesale Exemption Applies to Meals Purchased by...

Monday, June 3rd, 2019 -The Colorado Supreme Court recently ruled that a food service vendor made exempt wholesale sales of food and f...

Specialized Tools to Install Prosthetic Devices are...

Friday, May 31st, 2019 -The Wisconsin Tax Appeals Commission recently ruled that specialized tool kits used to install prosthetic devi...