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Minnesota

Minnesota confirms VoIP services are taxable telecommunications services

October 22, 2026

The Minnesota Department of Revenue confirmed in Revenue Notice 26-04 that VoIP services count as taxable telecommunications services. VoIP providers qualify for the state’s sales tax exemption on telecommunications equipment. Providers that offer only internet access do not qualify. Companies that sell both internet access and telecommunications services still qualify if they document that the equipment is used mainly to deliver telecommunications or pay-television services sold at retail. The notice supersedes Revenue Notices 02-14 and 05-03.

The bottom line: The guidance is in effect. If you sell VoIP services in Minnesota, collect sales tax on those services and review whether your equipment purchases qualify for the exemption. If you also sell internet access, keep records showing how you use the equipment.

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