Many businesses offering indoor tanning services are required to collect a 10 percent excise tax on the indoor tanning services they provide. The provider must pay the excise tax to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return. The following information is designed to help indoor tanning services providers understand how to collect, file and pay the tax.
On July 1, 2010, the U.S. government instituted a new excise tax that applied only to establishments that provide indoor tanning. This additional charge, called the Indoor Tanning Services Excise Tax, is a part of the Affordable Care Act, especially to discourage the practice of indoor tanning, which has been shown to pose substantial health risks.
What is Taxable Indoor Tanning Service?
Taxable 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 nano meters, to induce skin tanning. Companies that offer spray-on tanning services or tanning lotion applications that are offered by trained medical personnel are exempt from this tax. The provisions of this tax do not apply to fitness centers that provide tanning as part of the available amenities without charging an additional fee.
Who must pay the Indoor Tanning Services Tax?
Indoor tanning service providers (tanning salons) are responsible for collecting the tax from the person paying for the service. As a result, some tanning salon owners may opt to increase their prices by 10 percent to collect the tax at the time of the transaction. There is no legal requirement that owners stipulate that customers must pay additional 10 percent taxes in addition to their typical service fees.
How do I report the Indoor Tanning Services Tax?
The person (tanning service provider) receiving the payment for the indoor tanning service must report the indoor tanning services tax on Form 720 “Quarterly Federal Excise Tax Return” and remit the full amount of tax with a timely filed return.
Register for free by visiting www.TaxExcise.com. You’ll need your EIN, Business Name, address, Bank Account and bank routing number to report the indoor tanning services tax on-line on Form 720, Quarterly Federal Excise Tax Return due by OCTOBER 31ST, 2015 for Q3 2015. Act fast and report it electronically at www.TaxExcise.com to get it accepted by IRS within minutes.
Tax720 Indoor Tanning Services can now be e-filed using our Android App, now available on Google PlayStore for download. This app is an extended version of TaxExcise.com to report Quarterly Federal Excise Taxes for Indoor Tanning Services using Form 720.
E-file is Simple, Safe and Secured and now possible from your Android Smart Phone. You can always count on the Support Team for help, they live to provide top-notch year-round support during the business hours. Call them at 1-866-245-3918 or email them at support@taxexcise.com.