Prepaid Wireless Tax

All Rhode Island sales tax permit holders who sell prepaid wireless telecommunication services on a "cash-and-carry" or "pay-as-you-go" basis. 

Total amount of prepaid wireless telecommunications retail sales transactions is subject to a 2.5% charge. However, the law allows for a Seller administrative deduction. A seller shall be permitted to deduct and retain one percent (1%) of prepaid wireless E-911 charges that are collected by the seller from consumers.

The Prepaid Wireless Tax is to be paid on a monthly or quarterly frequency following the filer’s sales tax filing frequency. https://tax.ri.gov/tax-sections/sales-excise/sales-use-tax