Taxability of Mobile Entertainment Devices Used In Restaurants

Tuesday, March 14th, 2017

 
 
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Vermont
Entertainment

The Vermont Department of Taxes ruled that fees to access entertainment content on mobile devices at restaurants are taxable.

The taxpayer was a restaurant operator that provided patrons with mobile devices. Patrons used the devices to view menus, order and pay for meals, and access entertainment content such as games and social media. The restaurant paid a monthly fee to a vendor for use of the devices. It then charged patrons a fee for access to the entertainment content.

Vermont taxes access to gaming and amusement devices. The fees charged by the restaurant were for access to games and other entertainment, so they were taxable. The monthly fee paid to the vendor was also taxable as a rental of tangible personal property.

https://www.ttrus.com/sites/default/files/vt/Formal%20Ruling%2016-03.pdf


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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.

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