- New York State Division of Tax Appeals ruled that Federal Universal Service Fund fees collected by a telecom company are subject to sales tax.
- The fees are considered part of the overall service package, despite being listed separately on bills.
- A 2015 decision supported this ruling, stating the fees are integral to the mobile telecommunications service.
- The ALJ distinguished this case from a previous ruling where FUSF fees were not taxed, citing differences in service bundling.
- The federal Mobile Telecommunications Sourcing Act allows for different tax treatments of bundled and unbundled services.
Source: deloitte.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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