Video production services are not taxable when you provide them as part of a sale of a nontaxable advertising services. To qualify as a provider of nontaxable advertising, you must meet three requirements:
- The final product has no use beyond advertising (such as for employee training)
- You create the advertising (rather than sending the raw video to an ad agency)
- You work directly with the advertiser (rather than as a subcontractor)
If you meet the above requirements, do not charge sales tax. Your invoice must clearly state that you provided “creative promotional services.” No exemption certificate is required.
Note: You must pay sales or use tax on all taxable inputs used to create the advertising. For more information, see Taxable Purchases and Use Tax.