Form Ct-2 - Guidelines And Rules For The Virginia Communications Taxes (Page 5 of 16) in pdf

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Security deposits;

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A fee or assessment levied by the United States

or any state or local government, including but

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Bad check and late payment charges;

not limited to, regulatory fees and emergency

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Billing and collection services;

telephone surcharges, that is required to be added

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Internet access service, electronic mail service,

to the price of service if the fee or assessment is

electronic bulletin board service, or similar

separately stated (including E-911 fees and public

services that are incidental to Internet access,

rights-of-way fees);

such as voice-capable e-mail or instant messaging

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Coin-operated communications services;

(however, charges for connection, reconnection,

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Sale or recharge of a prepaid calling service

termination, movement, or change of such services

(including prepaid wireless telephone service);

are subject to the tax);

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Provision of air-to-ground radiotelephone services,

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Digital products delivered electronically, such as

as that term is defined in 47 C.F.R. § 22.99;

software, downloaded music, ring tones and reading

materials;

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A provider’s internal use of communications

services in connection with its business of providing

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Over-the-air radio and television service broadcast

communications services;

without charge by an entity licensed for such purposes

by the Federal Communications Commission;

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Charges for property or other services that are not

part of the sale of communications services, if the

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Communications services purchased by and billed

charges are stated separately from the charges for

to transients by any hotel, motel, inn, tourist

communications services;

camp, tourist cabin, camping grounds, club, or

any other place in which rooms, lodging, space,

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Sales for resale; and

or accommodations are regularly furnished to

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Charges for communications services to the

transients for a consideration. This does not relieve

Commonwealth, any political subdivision of the

the obligation of the facility to pay communications

Commonwealth, and the federal government

sales tax to its provider (or to remit communications

and any agency or instrumentality of the federal

use tax if services are purchased from a provider who

government.

lacks nexus and is not registered for the collection

(Source: Code of Va. § 58.1-648 B)

of the tax) on its purchases of communications

services; and

Bundled Transactions

A bundled transaction is a transaction that includes

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Communications services purchased by and billed

communications services subject to the communications

to tenants by their landlord. This does not relieve the

sales tax and consists of distinct and identifiable

obligation of the landlord to pay communications

properties, services, or both, sold for one nonitemized

sales tax to its provider (or to remit communications

charge for which the tax treatment of the distinct

use tax if services are purchased from a provider who

properties and services is different. If the charge is

lacks nexus and is not registered for the collection

attributable to services that are taxable and services that

of the tax) on its purchases of communications

are nontaxable, the portion of the charge attributable

services.

to the nontaxable services will be subject to tax unless

(Source: Code of Va. § 58.1-648 C)

the provider can reasonably identify the nontaxable

portion from its books and records kept in the regular

Nontaxable Amounts

For purposes of the communications sales tax, the sales

course of business and not created and maintained for

price will not include the following amounts:

tax purposes. Books and records will be considered to

be maintained for tax purposes when such books and

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Excise, sales or similar taxes levied by the

records identify taxable and nontaxable portions of the

United States or any state or local government

price while other books and records are maintained

on the purchase, sale, use or consumption of any

that identify different prices attributable to the distinct

communications services that are permitted or

products included in same bundled transaction. For

required to be added to the sales price of such

purposes of example only, books and records kept

service, if the tax is stated separately (including the

in the regular course of business that are acceptable

federal excise tax on telephone service);

include financial statements, general ledgers, invoicing

and billing systems and reports and tariffs and other

regulatory reports. (Source: Code of Va. § 58.1-650)

CT-2 W

REV 11/06

Page

Form Ct-2 - Guidelines And Rules For The Virginia Communications Taxes Page 5

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