Tax Type
Retail Sales and Use Tax
Description
Blueprints, True Object
Topic
Taxability of Persons and Transactions
Date Issued
10-23-1991
October 23, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear**************
This will reply to your letter of June 28, 1991 in which you request a ruling on the applicability of sales and use tax to the provision of blueprints in rendering architectural services.
FACTS
The Taxpayer is an architectural firm. In the past, blueprints have been purchased by the Taxpayer from an outside source and use tax was paid. The Taxpayer is considering producing its own blueprints in house and requests a ruling on the tax treatment with regard to this new transaction.
RULING
Virginia Regulation (VR) 630-10-97.1 (copy enclosed) provides an exemption for services which involve sales as inconsequential elements for which no separate charge is made. A "true object" test is used to determine whether a particular transaction which involves both the rendering of a service and the provision of property constitutes an exempt service. In applying the true object test in this instance, the true object sought by the client is the rendering of professional services. The provision of the blueprints, whether purchased from an outside source or produced in-house is incidental in nature when furnished to a client in connection with architectural design work or other professional service transactions, and therefore the blueprints are nontaxable to the client.
However, as the provider of the service, the Taxpayer is subject to the tax on all tangible personal property purchased to provide the exempt service. Thus, the purchase of the blueprints from an outside source is subject to the tax, and all tangible personal property purchased for use and consumption in the production of the blueprints by the Taxpayer is subject to the tax.
VR 630-10-82 (copy enclosed) provides that the tax applies to "sales of photographs, portraits,...blueprints, frames, camera film, etc." As such, charges for blueprints which are sold to clients without the provision of professional services are subject to the sales tax. An example of such a taxable transaction is the sale of additional sets of blueprints to a client's construction contractor.
I hope the foregoing responds to your inquiry. If you have additional questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5316J
Rulings of the Tax Commissioner