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Virginia Tax Commissioner rules picture messaging services are subject to communications sales tax

The Commissioner of the Virginia Department of Taxation recently ruled that picture messaging services provided by a cellular services provider are subject to the Virginia Communications Sales Tax (CST). Ruling in favor of the Department, the Commissioner reasoned that such services did not fall under the protection of the federal Internet Tax Freedom Act (ITFA). Further, the Commissioner found that such services were explicitly listed as those subject to the CST under the Department’s issued guidance.