Va. Court Sides With Alcatel-Lucent in Tax-Exempt Case
A Virginia Circuit Court in Richmond held in a Sept. 9 opinion that Alcatel-Lucent was entitled to a sales tax refund on software, equipment and related services it sold to Shenandoah Personal Communications, blogged the Eversheds Sutherland law firm Tuesday.…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Under Virginia law, software delivered electronically via the internet is exempt from sales tax, it said. The state tax commissioner argued the software was not exempt because there was no invoice, contract or other sales agreement certifying the delivery method, it said: “However, the court rejected this argument, concluding that there was no such requirement under the statute’s plain language.” The court also found that Alcatel’s sales of equipment were also exempt, said the firm. Tax-exempt equipment includes broadcasting equipment, parts and accessories thereto, plus amplification, transmission and distribution equipment when used by entities under the “regulation and supervision” of the FCC, the firm said: “The court concluded that the equipment was broadcasting equipment and the purchaser was a concern regulated and supervised by the FCC. The equipment was also amplification equipment used by an open video system.”