INTERPRETIVE STATEMENT
The department of revenue has issued the following Excise Tax Advisory: ETA 2029.04.245 Taxation of Network Telephone Service Used to Provide Internet Access Services.
The purpose of this advisory is to explain the taxation of network telephone services used to provide Internet access. It explains that persons who sell network telephone services used by Internet service providers to provide Internet access must collect retail sales tax and pay business and occupation tax on the transaction and that the Internet Tax Freedom Act does not affect these responsibilities.
A copy of this document is available via the Internet at http://www.dor.wa.gov/content/laws/eta/eta.aspx or a request for copies may be directed to Roseanna Hodson, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 570-6119, fax (360) 586-5543.
Alan R. Lynn
Rules Coordinator