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Wednesday
Jun202012

Be Sure to Charge the Right Tax on Tanning

In 2010, the Internal Revenue Service issued a regulation requiring businesses that offer tanning to charge a 10% excise tax on those services. There is an exemption, but it is limited.

The regulations specifically exempt “qualified physical fitness facilities” that provide access to tanning devices as part of membership fees. Exclusion from enforcing the tax is limited to businesses in which the “predominant business or activity is providing facilities, equipment, and services to its members for purposes of exercise and physical fitness.” This exception does not apply to a fitness facility that charges separately for these services or that offer different pricing options to members based on whether tanning services are included.

>> Watch a helpful video from the IRS further clarifying the exemption on IHRSA.org.

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