006.05.06 Ark. Code R. 005-GR-46

Current through Register Vol. 49, No. 10, October, 2024

Rule 006.05.06-005-GR-46 - NON-TAXABLE ADVERTISING SERVICES

A. DEFINITIONS.

1. "Advertising agency" means a business which provides comprehensive, professional advertising services including, but not limited to, artwork, concepting, designing and any other creative services necessary to create, plan and implement an advertising scheme.

2. "Advertising services" mean those professional services provided by an advertising agency when designing and implementing an advertising campaign for a customer.

B.

1. Advertising services shall not be subject to gross receipts tax.

2. Advertising agencies must pay the Arkansas gross receipts or use tax on all property and taxable services which they purchase or consume in providing advertising services.

3. The sale of caps, pencils, mugs, shirts or any other item of tangible personal property which contains the name, logo, picture or other message designed by the purchaser is subject to the gross receipts tax if the sale is made by a retail business engaged in the sale of advertising materials.

006.05.06 Ark. Code R. 005-GR-46

Ark. Code Ann. § 26-52-401(13)