Businesses providing ultraviolet tanning services must collect
the 10 percent excise tax at the time 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 his or her premises.
The tax does not apply to spray-on tanning services.
If a payment covers charges for tanning services along with other
goods and services, 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
on a quarterly basis.
To pay the tax, businesses must file IRS Form 720, Quarterly
Federal Excise Tax Return using an Employer Identification Number assigned by the IRS. Businesses that don’t already
have one can apply for an EIN online at IRS.gov.
