Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
GROSS RECEIPTS TAX RULES
Rule 006.05.06-005-GR-7.2 - PREPAID CALLING SERVICE AND PREPAID WIRELESS CALLING SERVICE
Universal Citation: AR Admin Rules 006.05.06-005-GR-7.2
Current through Register Vol. 49, No. 9, September, 2024
A. Sales of a prepaid calling service, a prepaid wireless calling service, or the recharge of a prepaid calling service or a prepaid wireless calling service are subject to gross receipts tax.
B. DEFINITIONS.
1. "Prepaid calling service" means the right
to access exclusively a telecommunications service, which must be paid for in
advance and which enables the origination of calls using an access number or
authorization code, whether manually or electronically dialed, and that is sold
in predetermined units or dollars of which the number declines with use in a
known amount.
2. "Prepaid telephone
calling card" or "prepaid authorization number" mean the exclusive purchase of
telephone or telecommunications services, paid for in advance, which enables
the origination of calls using an access number or authorization code, whether
manually or electronically dialed.
3. "Prepaid wireless calling service" means a
telecommunications service that provides the right to utilize a mobile wireless
service as well as other nontelecommunications services, including the download
of a digital product delivered electronically, content, and ancillary services,
which must be paid for in advance and that is sold in predetermined units of
dollars of which the number declines with use in a known amount.
4. "Recharge" means the purchase of
additional telephone or telecommunications services for a previously purchased
prepaid calling service or prepaid wireless calling service.
C. SOURCING.
1. If the sale or recharge of a prepaid
calling service or a prepaid wireless calling service takes place at the retail
vendor's place of business, then the sale is sourced to that business location
and the applicable local sales tax rate is that of the business
location.
2. If the sale or
recharge of a prepaid calling service or a prepaid wireless calling service
does not take place at the retail vendor's place of business, then the sale is
sourced to the first of the following addresses that is known to the seller in
accordance with Ark. Code Ann. §
26-52-521(b):
a. The location indicated by instructions for
delivery to the purchaser (or donee);
b. The address of the purchaser;
c. The billing address of the purchaser;
or
d. The address from which the
tangible personal property was shipped or from which the service was provided,
disregarding for these purposes any location that merely provided the digital
transfer of the product sold. In the case of a sale of prepaid wireless calling
service, the location associated with the mobile telephone number may be
used.
3. A prepaid
calling service or a prepaid wireless calling service sold through a vending
device is taxed as any other good sold through a vending device.
Ark. Code Ann. §§ 26-52-314; 26-52-315(d)(3)
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
