Updated: April 26, 2021
Overview
Taxable telecommunications services include the following:
- Telephone services (voice and non-voice)
- Per minute or other separately stated charges for long distance telephone calls, whether the call is online or not
- Telegraph services
- Beeper, paging, and similar services
- Voicemail services
- Fax services
- Teleconferencing services
- Auxiliary services such as call-forwarding and call-waiting
- Cellular telephone service including roaming charges
- Charges for your right to use any telecommunications service, whether you use the service in a particular billing period or not.
- Such charges include fees structured as recurring monthly charges for:
- Telephone service
- Set-up or activation charges
- Access charges
- Membership fees.
- Such charges include fees structured as recurring monthly charges for:
To register and collect
To register to collect sales tax on Telecommunications, you need to register your business with MassTaxConnect.
Exemption of residential telephone services
An exemption of $30 per month applies to certain residential telephone services. Only one $30 exemption may be claimed per month by a residential customer at a service address.
Residential telephone service generally includes:
- Service provided to an individual for personal use at his or her residential address.
Individuals who live in places such as schools or nursing homes are eligible for this exemption if the service is:
- Provided to them
- Paid for by them.
Telephone service provided to a business is not residential service even if the business is located in an individual's home.
If an otherwise residential telephone is used for business purposes, the business must file a Form ST-10, Business Use Tax Return, and pay tax.
Residential users are not required to present exemption certificates.
Additional Resources
Contact for Sales Tax on Telecommunications
Phone
9 a.m.–4 p.m., Monday through Friday