Tax Type
Retail Sales and Use Tax
Description
Photographers
Topic
Taxability of Persons and Transactions
Date Issued
02-27-1987
February 27, 1987
Re: Ruling Request/ Sales and Use Tax
Dear ******************
This will reply to your letter of October 21, 1986 seeking information on the correct application of the tax to transactions between professional photographers and advertising businesses.
Effective July 1, 1986 the tax does not apply to charges for "advertising" which is defined in Virginia Code §58.1-602(23) 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.
In general the total charge for the provision of photographs, slides, etc., to customers by a professional photographer is subject to the tax as the sale of tangible personal property under §630-10-82 of the Retail Sales and Use Tax Regulations, a copy of which is also enclosed. Accordingly, any items purchased by a photographer which will become a component part of such taxable photographs, such as chemicals, paper and other materials may be purchased exempt of the tax if the photographer provides its supplier with a resale certificate of exemption (Form ST-10), at the time of purchase.
However, as a result of the above referenced law change, effective July 1, 1986 the total charge for the provision of photographs, slides, etc., to advertising businesses for use in the development of a specific advertising campaign will not be subject to the tax as the charge for a nontaxable service. It should be noted further however, that in accord with the last sentence of Virginia Code §58.1-602(23) cited above, all of a photographer's purchases of chemicals, paper and other materials, (whether or not they become a component part of a finished product) used or consumed in providing such photographs to advertising businesses will be subject to the tax at the time of purchase.
In those rare instances that photographs are provided to an advertising business for some general or non-media advertising purpose, such as for inclusion in an in-house directory being developed by the advertising business, the total charge for such photographs will continue to be subject to the tax under the general rules governing all photographers found in §630-10-82 of the enclosed regulations.
I hope that all of the foregoing and the enclosed materials will be of assistance to you, but please let me know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner