Alabama Appellate Court Affirms Dealer’s Sales of Prepaid Wireless Service Plans are Not Taxable

The Alabama Court of Civil Appeals affirmed that an in-state authorized dealer for a prepaid wireless service provider did not owe Alabama sales taxes on funds it received from customers of the wireless service provider as prepayments for the provider’s wireless service because, among other reasons, such sales were not considered taxable under state law in effect for the prior years at issue.

Source Deloitte


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