Does a yoga instructor have to register and collect Kansas sales tax?

Plain-English summary

A yoga instructor asked whether Kansas law defines them as a retailer who must collect sales tax. The Department framed the issue as "does the Kansas law define you as a retailer?"

The answer. "If your only activity is the teaching of Yoga, you would not be required to register as a retailer. If you engage in the selling of tangible personal property or the performance of any taxable service in Kansas, then you would be required to register, collect and remit sales tax to the State."

Bottom line: teaching yoga is not, by itself, a taxable activity that requires retailer registration. The obligation to register and collect tax arises only if the instructor also sells tangible personal property or performs some other taxable service in Kansas.

What this means for you

Teaching yoga alone is not taxable

If instruction is the only activity, the instructor is not required to register as a Kansas retailer and does not collect sales tax on the instruction.

Selling goods changes the analysis

If the instructor also sells tangible personal property — mats, apparel, equipment, or other merchandise — those sales are retail sales that require registration and collection of tax.

Performing a taxable service also triggers registration

Providing any other taxable service in Kansas likewise makes the person a retailer who must register, collect, and remit the tax.

Watch for mixed activities

A yoga business that adds retail sales or taxable services to its instruction needs to separate the taxable side and handle its registration and collection obligations for those receipts.

Common questions

Does a yoga instructor collect Kansas sales tax on classes?
No. If teaching yoga is the only activity, the instructor is not required to register as a retailer or collect tax on instruction.

When does a yoga instructor have to register?
When they also sell tangible personal property or perform another taxable service in Kansas.

Are product sales at a yoga studio taxable?
Yes. Selling merchandise is a retail sale that requires registration, collection, and remittance of tax.

Is yoga instruction an enumerated taxable service?
The Department treated instruction alone as not requiring retailer registration; only added sales of goods or taxable services create the obligation.

Citations and references

• The ruling states in prose that teaching yoga alone does not require retailer registration, while selling tangible personal property or performing any taxable service in Kansas does. No numbered statute is cited.
• K.A.R. 92-19-59 — authorizes Kansas private letter rulings; this ruling binds the Department only as to the requesting taxpayer and the facts presented.
• Issued August 21, 1998 by Mark D. Ciardullo, Tax Specialist, Kansas Department of Revenue.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-1998-71

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

August 21, 1998

XXXXXXXXXXXXXXXXXX
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Dear Mr. XXXXXXXXXX:

The purpose of this letter is to respond to your letter received by this office on July 6, 1998.

From the context of your letter I am assuming your request is regarding Kansas retailers’ sales tax. Specifically, does the Kansas law define you as a retailer?

If your only activity is the teaching of Yoga, you would not be required to register as a retailer. If you engage in the selling of tangible personal property or the performance of any taxable service in Kansas, then you would be required to register, collect and remit sales tax to the State.

Sincerely,

Mark D. Ciardullo
Tax Specialist

MDC

Date Composed: 08/28/1998 Date Modified: 10/10/2001

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