Wisconsin Rules Fleet Management Services Are Taxable Inspection and Communication Services

• The Wisconsin Tax Appeals Commission ruled that Verizon Connect NWF, Inc.’s fleet management service is a taxable “inspection service.”
• The service involves installing devices in vehicles to collect, analyze, and report diagnostic and location data to customers via an online platform.
• The Commission agreed with the Department of Revenue that this process is similar to a traditional vehicle inspection and thus subject to sales tax.
• Transmission of data from vehicles to servers is considered a taxable telecommunication service, and communications to customers (email/SMS) are taxable messaging services.
• The entire bundled fleet management service is taxable as an inspection service, including its telecommunication and messaging components.

Source: kpmg.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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