Is labor taxable as it relates to engineering, consulting and data processing services?
Under Virginia law, any services which are part of the retail sale of tangible personal property are subject to sales and use taxation, unless specifically exempted or excluded by statute. For example, see subdivisions 2 through 6 of Code of Virginia 58.1-609.5. Generally, however, charges for engineering, consulting and data processing services which are independent of the sale of tangible personal property are considered professional service transactions which are exempt from sales taxation under Code of Virginia 58.1-609.5(1). See P. D. 89-183 (6/13/89). Question 2: Are flat fees invoiced for preparing engineering plans and specifications taxable? Fees for engineering services to produce an original or master plan and specifications for a particular project are not taxable. However, charges for additional copies of such plans and specifications are subject to the retail sales and use tax. Question 3: Are reimbursable expenses such as lodging, meals, mileage, car rental charges, and
