West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-15 - Consumer Sales And Service Tax And Use Tax › Section 110-15-49 - Printers

Current through Register Vol. XLI, No. 28, July 12, 2024
49.1. Persons
				engaged in the business of printing, who provide materials and labor to produce
				printed products are considered to be manufacturers and must collect and remit
				consumers sales and service tax and use tax on sales of such products, or in
				lieu of the tax, receive a valid exemption certificate or direct pay number.
				Persons who provide printing services on materials owned by their customers are
				considered to be rendering a taxable service and must also collect and remit
				the tax, or in lieu of the tax, receive a valid exemption certificate or direct
				pay permit number.
49.2. Persons
				engaged in the business of printing who provide materials and labor to produce
				printed products are considered to be manufacturers and must pay consumers
				sales and service tax on their purchases, except those purchases of goods and
				services directly used in the manufacturing activity. Other items which are not
				integral or essential to the manufacturing activity, but which are instead
				considered to be incidental, convenient or remote to the manufacturing
				activity, are taxable. Guidelines for determining what is considered to be
				"directly used" are given in Sections 2 and 123 of these regulations.
49.3. Persons engaged in a manufacturing
				activity must either pay the tax and request a refund or credit or use a direct
				pay permit to obtain exemption on goods and services directly used in their
				manufacturing activity. An exemption certificate, as well as a direct pay
				permit, may be used to obtain an exemption on purchases of goods and services
				for resale.
49.4. If a direct pay
				permit is presented to the vendor, no tax is charged on the sale of tangible
				personal property or service rendered to the purchaser. The purchaser using the
				direct pay permit must keep a record of the purchases made using the direct pay
				permit and whether the items purchased were used in an exempt or taxable
				manner.
49.5. Pursuant to Section
				9c.7 of these regulations, a direct pay permit consumers sales and service tax
				return and a direct pay use tax return must be filed on a monthly basis by the
				direct pay permit user, together with the tax due on taxable purchases made
				using the direct pay permit.
49.6.
				Persons who provide printing services on materials owned by their customers are
				considered to be engaged in a service activity. Purchases of tangible personal
				property and taxable services for use or consumption in rendering a taxable
				service are taxable.
49.7. Printers
				who engage in manufacturing and who also render taxable services are engaged in
				multiple business activities. Persons engaged in multiple business activities
				will pay tax on their purchases for use in their overall business operation on
				an apportionment basis. Some items may be used in both the activities of
				rendering a taxable service and manufacturing. These items may be totally
				taxable or partially taxable depending on their use. Any reasonable method of
				apportionment, such as gross receipts from activities, will be acceptable.
				Documentation as to the apportionment method used should be retained for audit
				purposes. If an item is used in the activity of rendering a taxable service and
				is also directly used in the manufacturing activity, such item would be exempt
				to the extent it is directly used in the manufacturing activity. Items which
				are used in the activity of rendering a taxable service and indirectly used in
				the manufacturing activity, such as office furniture or supplies, would be
				taxable in full. To determine how much tax should be remitted when an item has
				a dual use, one of which is direct use in the manufacturing activity, the
				purchase price must be apportioned between taxable and nontaxable
				activities.