The province has recently revised these bulletins to clarify how tax applies when tangible personal property is incorporated with the provision of advertising or graphic design services. When a client of an advertising or graphic design firm receives an original copy or first final version of a design in a tangible format, such as paper ordisk, the tangible personal property is considered incidental to the supply of the design and no tax applies. However, any subsequent copies provided to a client would be subject to tax.
British Columbia Bulletins SST 035, “Advertising Agencies” and SST 128, “Graphic Designers”
Tax Development Aug 10, 2008