Tax Type
Retail Sales and Use Tax
Description
Bimonthly magazine
Topic
Exemptions
Date Issued
09-30-1991
September 30, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your letter requesting a ruling on the applicability of the Virginia retail sales and use tax on the publication of the **************** (the magazine).
FACTS
The Taxpayer publishes a bimonthly magazine which is generally for free distribution, but is also sold by subscription. The magazine contains articles of general interest and advertising. The Taxpayer requests a ruling on the application of the tax to printing costs and to the distribution of the magazine.
RULING
Va. Code §58.1-608(A)(6)(c) provides an exemption from the retail sales and use tax for sales of:
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- [a]ny publication issued daily, or regularly at average intervals not exceeding three months, and advertising supplements and any other printed matter ultimately distributed with or as part of such publications except that newsstand sales of the same are taxable
Publication is defined in Virginia Regulation (VR) 630-10-73 as "any written complication of information available to the general public...[but] does not include general reference materials and their periodic updates."
In addition, Va. Code §58.1-608(A)(3)(b)(v) provides that the sales and use tax does not apply to "equipment, printing or supplies used directly to produce an exempt publication."
A review of the Taxpayer's magazine reveals that it does qualify as an exempt publication as set forth in Va. Code §58.1-608(A)(6)(c). As such, purchases of printing used directly to produce the exempt magazine are exempt from the tax as provided by Va. Code §58.1-608(A)(3)(b)(v). The Taxpayer may purchase printing exempt by presenting a Sales and Use Tax Exemption Certificate, Form ST-11 (copy enclosed) to the printer.
If you have any questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner