Tax Type
Retail Sales and Use Tax
Description
Printing; Charges for Printing or Engraving Plates
Topic
Taxability of Persons and Transactions
Date Issued
12-30-1991
December 30, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear***************
This will reply to your letter in which you request a ruling on the application of sales and use tax to plates used in the printing of bags by**************** (the Taxpayer).
FACTS
The Taxpayer is a manufacturer of specialty printed bags used by its customers for packaging purposes. The Taxpayer manufactures a plate to print certain information on the bags as specified by the customer. The customer is charged a one time fee for the plate, which remains in the possession of the Taxpayer and is used for reorders. Generally, the Taxpayer's customers are making exempt purchases. The Taxpayer requests a ruling whether the plate charge is taxable to a customer that is not making a tax exempt purchase.
RULING
Virginia Regulation (VR) 630-10-26 (copy enclosed) provides that packaging materials, such as bags, may be purchased tax exempt by wholesalers and retailers as purchases for resale, if the bags are marketed with the product being sold and become the property of the purchaser. If the purchase of the packaging materials is not exempt, the total charge for printing the bags is taxable.
As provided in the enclosed copy of VR 630-10-86, the total invoice charge for the production of printed matter in accordance with a customer's specifications for a customer's own use or consumption is subject to the tax, including the charge made for any engraved or other type of photoprocessed plate, die or mat involved in the printing. Thus, the Taxpayer's plate charge would be included in the taxable invoice charge.
I hope the foregoing has responded to your inquiry. Please contact the department if you have further questions.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/5502J
Rulings of the Tax Commissioner