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 to their customers. The service provider must pay the excise tax to the federal government through the quarterly federal excise tax form 720. 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 services 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 returns to the IRS. If the tax is not collected for any reason, the collector is liable for the tax. Like 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 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.
More information on Indoor Tanning Service Excise Tax
Businesses providing ultraviolet tanning services must collect the 10 percent excise tax when 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 their premises. The tax does not apply to spray-on tanning services.
Suppose a payment covers costs for tanning services and other goods and services. In that case, 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 every quarter.
Exceptions to Indoor Tanning Services Tax
The tax does not apply to spray-on tanning services, topical creams, lotions, or phototherapy services performed by a licensed medical professional on their 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.
E-file Form 720 indoor tanning services tax at TaxExcise.com!
TaxExcise.com is your perfect solution to e-file form 720 federal excise taxes online. You don’t have to visit the IRS office or wait in line to report your excise taxes every quarter. You can report your form 720 indoor tanning services tax electronically at TaxExcise.com. We have mobile applications to report the form 720 tailor-made for indoor tanning services taxes. The mobile application is available for Android and iPhone users in both the Play Store and Apple Store, respectively. You can download the mobile app for free and easily e-file your form 720 quarterly excise taxes for your indoor tanning services.
FAQs
What is the indoor tanning services tax?
Indoor tanning services tax is a part of federal excise tax that has to be paid on a quarterly basis for the service employing any electronic product designed to incorporate one or more ultraviolet lamps intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometres, to induce skin tanning.
Who must pay the indoor tanning services tax?
The customers paying for the services should also pay the excise tax and the service charges for their tanning services. The tanning service provider is responsible for collecting the tax amount and the service charges from the customers receiving indoor tanning services.
Who must report the indoor tanning services tax to the federal government using form 720?
The indoor tanning service provider should report the excise taxes to the IRS using the quarterly federal excise tax form 720 to the IRS. The service provider should maintain adequate books and records showing the revenue received for indoor tanning services.
What are all the services exempted from the indoor tanning services taxes?
Form 720 excise taxes for indoor tanning services is not applicable for spray-on tanning services, topical creams and lotions, or phototherapy services performed by licensed medical professionals on their premises.
Where do I file form 720 if I want to paper file my tax returns to the IRS?
You can visit the IRS office or send the completed Form 720, payment voucher Form 720-V, and a check or money order made payable to “United States Treasury” to the Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0009.