Document Number
95-123
Tax Type
Individual Income Tax
Description
Taxes paid by residents to another state
Topic
Credits
Date Issued
05-19-1995
May 18, 1995



Re: Request for Ruling: Retail Sales and Use Tax


Dear**********

This will reply to your letter of April 26, 1995 in which you seek information on the application of the sales and use tax to your photography business.

I have enclosed Virginia Regulation (VR) 630-10-82 which addresses the application of the sales tax to sales and purchases by photographers. The regulation provides that "[t]he tax is applicable to the total charge to the customer for a photograph, slide, etc., including, but not limited to, charges for labor, photocomposition, setting design, photography time, and any other components of the charge,..." It also distinguishes between items which may be purchased under a resale certificate of exemption and other items used by the photographer which are subject to the tax.

I have also enclosed prior rulings of the department which deal with the application of the tax to photographers. For example, Public Document 87-72 (2127187) provides guidance on handling transactions involving sales to advertising businesses. Public Documents 84-135 (8124184), 85-224 (12/13185), and 86-52 (3117186) explain the department's interpretation and application of the regulation.

You also seek assistance as to how to collect and remit the tax without creating an administrative burden upon your business. While the department does not provide to dealers specific methods for bookkeeping, VR 630-10-30 and VR 630-10-31 (Dealer's records and Dealer's returns and payment of the tax) provide the proper guidance for retention of records and remittance of sales tax returns.

I hope the foregoing responds to your inquiry. I have enclosed Forms R-1 and R4 (instructions for completing R-1) as you will need to register with the department as a dealer. Upon registration, you will receive a certificate of registration which will include a registration number to be used to purchase certain items exempt of the tax as provided in VR 630-10-82. Shortly, thereafter you will also receive sales tax returns for remittance of the tax collected. Please complete and return the registration form to***********in the Office of Tax Policy at P.O. Box 1880, Richmond, Virginia 23282. If you have additional questions or need further assistance, please do not hesitate to contact her at**********
                        • Sincerely,


                          Danny M. Payne
                          Tax Commissioner



OTP/9660J

Rulings of the Tax Commissioner

Last Updated 08/25/2014 16:46