Minnesota: Voice over Internet Protocol Service Subject to Tax

Voice over Internet Protocol (VoIP) services are subject to Minnesota sales and use tax as a telecommunications service. VoIP is not an exempted information service since it uses computer processing applications solely for the management, control, or an operation of a telecommunications system or management of a telecommunications service (Revenue Notice No. 05-03, Minnesota Department of Revenue, May 31, 2005).

Posted on January 16, 2006