When you itemize charges for conceptual services/preliminary art and finished art, your charges for the preliminary art are generally not taxable and your charges for the tangible finished art are generally taxable. The charge for the finished art should reasonably reflect the cost of creating the artwork plus a markup for profit. As noted earlier, be sure to describe charges for preliminary art as “design charges,”“preliminary art,”“concept development,” or another description that clearly indicates the charges are for the development and creation of preliminary designs. Lump-sum bill combining charges for preliminary and inished art There are two.
