Tax Type
Retail Sales and Use Tax
Description
Advertising; 1986 law changes
Topic
Collection of Tax
Exemptions
Date Issued
02-27-1987
February 27, 1987
Re: Ruling Request/ Sales and Use Tax
Dear ******************
This will reply to your letter of July 17, 1986 seeking information on the correct application of the sales and use tax to a variety of transactions between*********** and its clients. Effective July 1, 1986 the tax does not apply to "advertising" which is defined in §58.1-602 of the Virginia Code as, "the planning, creating, or placing of advertising in newspapers. magazines, billboards, broadcasting or other media, including without limitation, the providing of concept, writing, graphic design, mechanical art, photography and production supervision. Any person providing advertising as defined herein shall be deemed to be the user or consumer of all tangible personal property purchased for use in such advertising."
As a result of this law change, the Department has recently revised §630-10-3 of the Retail Sales and Use Tax Regulations. a copy of which is enclosed.
If after having an opportunity to review the enclosed regulation you still have questions concerning the application of the tax to the transactions mentioned in your letter, please let me know.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner