Tax Type
Retail Sales and Use Tax
Description
Tax Bulletin
Topic
Basis of Tax
Exemptions
Date Issued
09-27-1996
VIRGINIA TAX BULLETIN
Virginia Department of Taxation
September 27, 1996 96-6
RETAIL SALES AND USE TAX:
FILM PURCHASED BY COMMERCIAL PHOTOGRAPHERS
The Department of Taxation has received questions recently regarding the application of Virginia' s retail sales and use tax to purchases of film by commercial photographers. This bulletin is being issued to restate existing long-standing department policy on this issue.
Film Purchases by Photographers
Under 23 VAC 10-210-2050 (formerly Virginia Regulation 630-10-82), a commercial photographer is required to pay the tax on purchases of tangible personal property used or consumed in the provision of photography services. The department's long-standing policy has been that a commercial photographer is the final consumer of film used in preparing a photograph. As a result, the purchase of film by photographers is subject to the retail sales and use tax. See Public Documents 85-52 (3/14/85) and 95-237 (9/18/95).
Sales of Finished Photographs
The sale of a finished product to the customer, in the form of a tangible photograph, is taxable to the customer as the final consumer. The paper and chemicals used to prepare the photograph may be purchased exempt from tax as component parts of the print. See Public Document 87-72 (2/27/87).
Sales of Photographs to Schools in Fund-raising Programs and to Nontaxable Consumers
The sale of photographs to primary and secondary schools or other associated groups in fund-raising programs where a commission is paid back to the school is exempt from sales tax. Similarly, the sale of photographs to a nontaxable consumer (e.g., the federal government) is exempt of the tax. The purchase of film by photographers for use in these exempt sales is subject to the retail sales and use tax as the photographer, and not the exempt entity, is deemed the final consumer of the film used in preparing a photograph.
For additional information: Contact the Office of Customer Services; Virginia Department of Taxation; P. O. Box 1115; Richmond, Virginia 23208-1115 or call (804) 367-8037
Rulings of the Tax Commissioner