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Pennsylvania Commonwealth Court rules Internet provider’s outsourced services not subject to sales and use tax

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The Commonwealth Court of Pennsylvania has ruled that outsourced dial-up services provided by an Internet service provider were not subject to sales and use tax because they were considered nontaxable Internet access services under Pennsylvania sales and use tax law. The court distinguished this service from taxable telecommunications services because the taxpayer’s facility was a point of presence where the end-user’s Internet connection began.

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