No, sales of internet access services are not subject to sales tax or business tax. Federal law (47 U.S.C.A. §151, note §1101(a), known as the Internet Tax Freedom Act) prohibits state taxation of internet access.
Are sales of internet access services subject to sales tax or business tax?
- What services are subject to sales and use tax in Tennessee?
- Is software that is purchased, downloaded onto a server in another state, then accessed by the purchaser’s employees located throughout the U.S., including Tennessee, considered remotely accessed software for Tennessee sales and use tax purposes?
- Are online companies (or internet-based platforms) that provide virtual marketplaces through which property owners and property management companies offer short-term rentals of property considered property management companies for business tax purposes?
- Is it necessary to have a physical presence in Tennessee in order to be subject to business tax?
- What does it mean by engaged in taxable activity in Tennessee?