United States of America: Ruling on application of sales & use tax to internet advertising and online education revenue
Description
Ruling on application of sales & use tax to internet advertising and online education revenue
The Colorado Department of Revenue published the sales and use tax letter ruling PLR-21-005. In the ruling, the concern regarding the qualification of revenue generated from internet advertising for the sales and use tax was raised. The Department of Revenue ruled that in this specific case the internet advertising revenue does not fall under the scope of the sales and use tax, while the revenue from online education platforms does.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Indirect taxes
Regulated Economic Activity
online advertising provider, platform intermediary: user-generated content
Implementation Level
subnational
Government Branch
executive
Government Body
other regulatory body
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
online advertising provider
Category
All
2
Type
Private organisation
Economic activity
platform intermediary: user-generated content
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
advertisement (any targeting): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1 2
own content: any format: sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1 2