Tax Type
Retail Sales and Use Tax
Description
Mailing lists - standard vs. custom
Topic
Exemptions
Property Subject to Tax
Date Issued
09-19-1991
September 19, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your letter dated July 31, 1991 in which you request a ruling for your client (the Taxpayer) on the application of sales and use tax to mailing lists.
FACTS
The Taxpayer, located outside of Virginia, licenses the use of its customer mailing list contained on magnetic tape. The mailing list is used by the licensee to advertise by mail and is subject to a one time use.
RULING
In a May, 1985 ruling (copy enclosed), the Commissioner determined that mailing lists produced according to the specific needs of a particular client qualified for exemption from the tax since the true object of such a transaction is the acquisition of the service of transforming intangible information into a list, and the tangible personal property transferred to the customer (i.e., magnetic tapes) was incidental to the provision of such service.
However, standard mailing lists produced for sale do not provide the element of service such that the true object of the transaction is to secure the tangible lists and/or mailing labels. If the Taxpayer does not customize the list, then the Taxpayer must charge the tax to the customer at the time of sale.
I trust this will respond to your inquiry. If you have further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner