Photographers

RST Guide 509, May 2006

The information in this Guide explains how Retail Sales Tax (RST) applies to photographers. Please note that this Guide replaces the previous version dated May 2001.

Taxable Sales

A photographer may sell taxable items such as photographs, negatives, slides, film, videos, etc. Photographs or pictures may also be sold on computer disks, on CD-ROMs, on buttons, etc. Since RST is to be charged at the rate of 8 per cent on these items, the photographer must obtain a Vendor Permit from the nearest Ontario Ministry of Revenue Tax Office. The selling price of the above items includes charges for:

developing and printing
postage and handling
professional fees
set up and sitting fee
travel

The above charges are all taxable, even though they may be shown separately on the invoice. Some businesses provide services such as film developing, videotaping, aerial photography, etc. The businesses must collect RST on the total charge made to the customer, whether or not the customer supplies the film to be developed or the videotape for videotaping.

In the case of aerial photography, the photographer may rent an aircraft with a pilot. RST does not apply to the rental of the aircraft by the photographer as this is rental of equipment with an operator and is considered a non-taxable service. However, the photographer is required to charge RST on the total selling price of photographs taken which includes any separate charge made to the customer for the rental of the aircraft and pilot since this is considered part of the fair value of the photographs.

Exempt Sales

If, at the time of purchase, a customer provides a valid Purchase Exemption Certificate (PEC) for taxable goods bought for resale purposes, the vendor is not required to charge RST. This would also apply if items such as photographs, films, etc., are purchased for use in printing an exempt publication such as a newspaper or book.

Exempt Purchases

Vendors can purchase materials, including paper, mounts and frames that become part of the finished product, exempt from RST, provided a valid PEC is completed and given to the suppliers.

Under Ontario's Retail Sales Tax Act (Act), a manufacturer is a person who manufactures, fabricates, produces or assembles goods for sale where the fair value of the goods sold to others is more than $5,000 in the fiscal year or, the fair value of goods manufactured for own use is more than $50,000 in the fiscal year. For more information on how RST applies to manufacturing operations and available exemptions, refer to RST Guide 400 - Manufacturers.

Those who develop photographs or produce videotapes and DVDs etc., are considered manufacturers for RST purposes. If the sales of the photographs, videotapes, and DVDs etc., are more than $5,000 in a fiscal year, the following equipment and materials can be purchased or leased exempt from RST:

air brushes
analyzers
cameras and attachments
chemicals
discs
dryers
easels
enlargers and attachments
filters
film and film loaders
film and print processors
flash equipment
flood lights
lamp supports
lenses
light meters
timers
trays
tripods
videotapes.

An exemption can be claimed on the purchase or lease of any piece of equipment if the vendor meets the RST definition of a manufacturer in the same fiscal year the equipment is purchased. If the vendor does not qualify as a manufacturer in a fiscal year, RST must be paid on the equipment and materials that do not become part of the finished product. If the equipment does qualify for exemption, the repairs would also be tax-exempt.

An aircraft used in aerial photography may be purchased exempt from RST if the aircraft qualifies as a commercial aircraft as defined in the Act. A commercial aircraft is for the use of the general public and not primarily reserved for the use of one person and is operated, or available for operation, for hire or reward.

Legislative References

Retail Sales Tax Act, Paragraph 7(1)22
Regulation 1012 under the Act, Section 1 and Subsection 14(1)
Regulation 1013 under the Act, Section 1 and Subsection 3(2)

For More Information

The information contained in this publication is only a guideline. For more information, please contact the Ontario Ministry of Revenue at 1 866 ONT-TAXS (1 866 668-8297) or visit our website at ontario.ca/revenue.

ISBN 1-4249-0868-X