Tax Type
Retail Sales and Use Tax
Description
Advertising Supplements for Insertion into Newspapers
Topic
Reports
Date Issued
08-20-1982
August 20, 1982
Sales and Use Tax Policy Statement 82-3
SUBJECT: Advertising Supplements for Insertion into Newspapers
EFFECTIVE DATE: Retroactive to September 1, 1966
SUPERSEDES:
All previous documents and any oral directives in conflict with this policy statement.
REFERENCES:
§§ 58-441.2(c) and 58-441.5(k) of the Code of Virginia, § 1-73 and 1-86 of the Virginia Retail Sales and Use Tax Regulations.
AUTHORITY:
§ 58-48.6 of the Code of Virginia, as amended (1980).
SCOPE:
Applicable to any taxpayer whose business relates to the sale or purchase of custom printed advertising supplements for insertion into newspapers.
PURPOSE:
This policy statement sets forth the department's policy on the applicability of the sales and use tax to all transactions for custom printed advertising supplements for later insertion into newspapers.
POLICY:
It is the policy of the Virginia Department of Taxation that the purchase of advertising supplements from an out-of-state or a Virginia printer with delivery to Virginia newspapers for subsequent insertion into such newspapers is the purchase of custom printing subject to Virginia sales and use tax. The tax applies printer.
If the printer is located without Virginia, the taxable event occurs on receipt in Virginia of the advertising supplements by the newspaper on behalf of the purchaser pursuant to his contracts with the custom printer and Virginia newspaper publishers. If the printer is located within Virginia, the printer should add the tax to the total invoice charge.
This policy reflects the taxable posture the department has taken in regard to custom printing since the enactment of the Virginia Retail Sales and Use Tax Act as reflected in audits made pursuant thereto. Accordingly, this policy statement applies retroactively to September 1, 1966, the effective date of both the Virginia Retail Sales and Use Tax Act and the applicable custom printing regulation, § 1-86 of the Virginia Retail Sales and Use Tax Regulations.
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner