Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 210 - RETAIL SALES AND USE TAX
Section 23VAC10-210-6020 - Typesetting

A. Definitions. The following words and terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise:

"Electronic prepress" means any process involved in taking manuscript, conventionally supplied artwork, electronically supplied artwork, electronically supplied keystrokes, and other client materials and formatting these materials into electronic commands so that they can be output as film or paper to image-setting output devices or prepared in such a way that they can be distributed electronically by way of any electronic or magnetic media. It also includes the various proofing steps that are required prior to final output or distribution by way of any electronic or magnetic media.

"Typesetting" means the process by which specialized equipment is used to accept front-end commands and to transform them into text characters according to the font, type size, and other instructions of a composition system and includes electronic prepress, as defined in this section.

B. Generally. Persons engaged in providing typesetting products for sale or resale to printers which qualify for the industrial manufacturing exemption as set forth in subdivision 2 of § 58.1-609.3 of the Code of Virginia are also considered industrial manufacturers, regardless of whether finished products are produced by hand composition, machine composition, photocomposition, typographic composition, or electronic page composition.

C. Sales. The sale of typesetting products is the sale of tangible personal property. The tax is computed upon the total charge for typesetting, including any charges for services connected with the sale. All typesetting operations must register as dealers. In addition, they must collect the tax from their customers, and remit the tax to the department unless the customer furnishes a valid exemption certificate, as provided in 23VAC10-210-280.

D. Purchases. Typesetters, as industrial manufacturers, are exempt from taxation on the purchase of industrial materials, machinery, tools, equipment, and other items of tangible personal property that are used primarily and directly in the production of typesetting products to be sold or resold to printers qualifying for the industrial manufacturing exemption. Examples of exempt typesetting materials, machinery, and equipment include, but are not limited to, the following:

E. Word processing. Word processing, used in the production of customized letters, resumes, reports, and similar products (even when produced by a business also engaged in typesetting) is not industrial manufacturing for purposes of the exemption described in subsection D of this section.