S.C. Code Regs. 117-308.9 — Advertising Agencies

Advertising agencies are engaged primarily in the business of selling services. These rely on
expertise in advertising strategy, in media buying, in graphic arts production and in other specialized
fields to secure and retain clients.
These companies purchase and/or produce finished advertising materials such as radio and televi-
sion spots and newspaper, magazine and billboard ads, and contract with local and network radio and
television stations, newspaper and magazine publishers, outdoor advertising companies, transit adver-
tising companies (bus, taxi and airline) and other media for time or space to air or display these
programs.
In the development and execution of a complete advertising campaign, advertising agencies may
also share responsibilities with clients in the development of products or services to include, as an
example, creation of a trademark, determination of a price, selection or creation of channels of
distribution of the products and/or dealership and appraisal of competition.
Receipts of advertising agencies from the furnishing of these professional services are not subject to
the sales or use tax. The tax is due, however, on all tangible personal property purchased by these
agencies for use in the performance of such services irrespective of whether such property is acquired
in the name and for the account of the advertising agencies or their respective principals.