Sales/Use/Indirect:
Utah: Online Streaming Entertainment Company Owes Tax on Monthly Subscription Fees as Bundled Transactions
Appeal No. 22-1274, Utah State Tax Comm. (9/19/23). In a ruling involving a multinational provider of licensed and original entertainment programming that offers subscriptions to its streaming services platform for a monthly fee that includes the ability to download programming and view it offline, the Utah State Tax Commission held that while the company’s online streaming alone is not subject to Utah sales tax under state law, Utah may impose sales tax on the monthly subscription fees in this case as a bundled transaction. In doing so, the administrative law judge explained that based on the provided facts, the company did not prove by reasonable and verifiable standards that there was no charge for the offline-download feature embedded in its total subscription price during the audit period at issue, and thus the entire monthly subscription price is taxable as a bundled transaction. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
