The Department intends to amend and reissue Excise Tax Advisory (ETA) 3159 titled Internet Protocol (IP) enabled telecommunications service taxability, sourcing, and allocation, which was originally issued May 20, 2011. The Department intends to file for issuance of this amended ETA November 27, 2013. In general, the ETA addresses the taxability, sourcing, and apportionment of telecommunications services using Voice over Internet Protocol (“VoIP”) and Fax over Internet Protocol (“FoIP”) technologies under Washington’s retail sales tax and retailing B&O tax.
This ETA is being amended solely to recognize Second Engrossed Second Substitute House Bill (SESSHB) 1971 (Chapter 8, Laws of 2013, 2nd Special Session) that eliminated the local services exemption contained in RCW 82.08.0289 and retroactively addressed this exemption with respect to fixed interconnected voice over Internet protocol services sold by certain specified providers as defined in SESSHB 1971. The new amendatory language can be found in the “Taxability” section of the draft ETA
View the draft ETA 3159.2013
If you have any questions or comments, please provide them to Wan Chen at WanC@dor.wa.gov.