Indoor Tanning Services Tax
Many businesses offering indoor tanning services are required to collect a 10 percent
excise tax on the indoor tanning services they provide. The provider must pay the
excise tax to the government, quarterly, while reporting IRS
Form 720, Quarterly Federal Excise Tax Return. The following information
is designed to help indoor tanning services providers understand how to collect,
file and pay the tax.
The tax on indoor tanning service is 10% of the amount paid for that service. The
tax is paid by the person paying for the indoor tanning service and is collected
by the person receiving payment for the indoor tanning services. The person receiving
the payment for indoor tanning services (collector) must collect and remit the tax
and file the return. If the tax is not collected for any reason, the collector is
liable for the tax. Like other any other tax return, the tanning service provider
must maintain adequate books and records showing the amount of revenue received
for indoor tanning services.
Indoor tanning service means a service employing any electronic product designed
to incorporate one or more ultraviolet lamps and intended for the irradiation of
an individual by ultraviolet radiation, with wavelengths in air between 200 and
400 nanometers, to induce skin tanning. The term does not include phototherapy service
performed by, and on the premises of, a licensed medical professional (such as a
dermatologist, psychologist, or registered nurse). See Regulations section 49.5000B-1
for more information and special rules for qualified physical fitness facilities,
undesignated payment cards, and bundled payments.
Businesses providing ultraviolet tanning services must collect the 10 percent excise
tax at the time the customer pays for the tanning services. If the customer fails
to pay the excise tax, the tanning service provider is liable for the tax. The tax
does not apply to phototherapy services performed by a licensed medical professional
on his or her premises. The tax does not apply to spray-on tanning services.
If a payment covers charges for tanning services along with other goods and services,
the other goods and services may be excluded from the tax if they are separately
stated and the charges do not exceed the fair market value for those other goods
and services. If the customer purchases bundled services and the charges are not
separately stated, the tax applies to the portion of the payment that can be reasonably
attributed to the indoor tanning services. The tax does not have to be paid on membership
fees for certain qualified physical fitness facilities that offer indoor tanning
services as an incidental service to members without a separately identifiable fee.
Tanning service providers must report and pay the excise tax on a quarterly basis.
E-filing Indoor Tanning Service Excise Tax
EIN is a must to report the Indoor Tanning Service Excise Tax quarterly. The
Indoor Tanning service excise tax can also be prepared and filed electronically
with TaxExcise.com
Exceptions
The tax does not apply to spray-on tanning services, topical creams and lotions
or to phototherapy services performed by a licensed medical professional on his
or her premises. There is also an exemption for "qualified physical fitness facilities"
that meet specific criteria and offer tanning as an incidental service to members
without a separately identifiable fee. The regulations also provide an exception
for certain physical fitness facilities that offer tanning as an incidental service
to members without a separately identifiable fee.
For more information, call the toll-free Business and Specialty Tax Line (800-829-4933),
available Monday-Friday from 7 a.m. to 10 p.m. local time, or visit the resources
shown below.
For more FAQ’s on Indoor Tanning Service click here.