- The North Carolina Department of Revenue issued a private letter ruling stating that a taxpayer’s computer processing application for reformatting and transmitting messages to telecommunication carriers is considered taxable telecommunications services, not information services.
- The ruling concluded that the primary purpose of the service is message transmission rather than obtaining processed data or information.
- Therefore, gross receipts from the taxpayer’s telecom services are subject to sales and use tax in North Carolina.
Source Deloitte
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