Information Guide

Identifying Information:Graphic Design Services Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Graphic Design Services Self-Audit Fact Sheet
Keywords:
Approval Date:01/25/2006


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
GRAPHIC DESIGN SERVICES SELF-AUDIT FACT SHEET


Graphic Design Services
Purchases by Graphic Design Services
The taxability of purchases of tangible personal property and labor services by Graphic Design service
providers is summarized below. Sales tax should be paid to the vender or accrued and paid directly to the
State of Kansas. A properly completed exemption certificate should be provided to your vendor for all purchases
made without tax.
Furniture and fixtures, including but not limited to: desks, lamps, tables, chairs, shelving, plants, planters, artwork, signs Taxable
Copiers, printers, and fax machinesTaxable
Laptop & desktop computersTaxable
Cameras of any type, calculators, printers and other similar equipmentTaxable
Promotional brochures, and advertising bookletsTaxable
Software & software upgrades and labor services to modify, alter, update or maintain software. Taxable
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software - "customized" software = software originally developed for a single end user.Taxable on and after July 1, 2002 through December 31, 2004 - Exempt all other periods
Newspaper and magazine subscriptions, reference books and materials, forms, printed matter (including promotional brochures, etc.), business cards, notepadsTaxable
Lease or rental of any tangible personal property - copier, faxTaxable
Security cameras and other security equipmentTaxable
Office utilitiesTaxable
Advertising in newspapers, radio, television, etcExempt
Promotional items including but not limited to: calendars, mugs and items of clothingTaxable
Complimentary items such as balloons, stickers, pens and candyTaxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticksTaxable
Shredding servicesExempt
Cleaning services, plant watering and careExempt
Trash removalExempt
Continuing Education coursesExempt
Repair and remodeling labor services to real estateTaxable
Labor services on original construction of new building or facilityExempt
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, security equipment, etc.Taxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc.Taxable
Professional services such as legal or accounting servicesExempt
Office and art supplies such as paper, pens, pencils, markers, paints, poster board, glue easels etcTaxable
Sales by Graphic Design Services
The taxability of sales of tangible personal property and labor services by Graphic Design service providers
is summarized below. The applicable sales tax must be collected unless the purchaser provides a proper
exemption certificate.
Consulting
Exempt
Art Direction (supervision of work-in-process)
Exempt
Design
Exempt
Illustrations (finished visual images or graphics)
Taxable
Labor services for installing or maintaining tangible personal property at a residence or commercial property
Taxable
Furnishings including but not limited to: furniture, carpeting, rugs, wall coverings, artwork, plants, pillows, accessories, lighting equipment, picture framing, etc.
Taxable
Labor services on real property: (Note: To calculate the taxable portion of a job use the following formula; Gross sales, Less Subcontractors, Less taxed job materials = total labor)
Total labor for improvement to real property at a residence
Exempt
Total labor for improvement to real property at a commercial location
Taxable




Date Composed: 07/06/2006 Date Modified: 07/06/2006