Tag Archives: Early Termination Fees

Washington Department of Revenue takes same position on taxability of early termination fees being challenged in Massachusetts

In a ruling that will be of interest to taxpayers following Massachusetts appeals on the issue, Washington has issued recent guidance (see Washington DOR – Termination Fees) asserting that early termination fees for cancelling cellular phone contracts are subject to retail sales tax as taxable telecommunications services. This guidance takes the same position that the Massachusetts Department … Continue Reading

Are early termination fees charges for “telecommunications services” in Massachusetts?

The ATB recently received a petition challenging the imposition of sales tax on the early termination fee charged by a mobile telecommunications  The Department asserted at audit that the early termination fees were charges for telecommunications services and, thus, subject to Massachusetts sales tax.  The taxpayer is now challenging that assessment. Read more about the … Continue Reading
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