82-112 | Virginia Tax

Tax Type

Retail Sales and Use Tax

Description

Meals Tax

Topic

Exemptions

Date Issued

08-12-1982

August 12, 1982

Re: Virginia Retail Sales and Use Tax

Dear **********************

This letter is in response to a recent verbal request for a ruling on the applicability of the sales and use tax to the purchase of meals and lodging by certain nonprofit institutions of learning.

§ 5&-441.6(t) of the Code of Virginia extends a sales and use tax exemption to tangible personal property purchased for use and consumption by nonprofit institutions of learning. For purposes of this exemption the term "institution of learning" includes:

- An educational institution doing business in the Commonwealth which (1) admits regularly enrolled high school and college students, and (2) provides a face-to-face educational experience in American government, a program which (a) leads toward the successful completion of United States history, Civics, and problems of democracy courses in high school, or (b).which is acceptable for full credit towards an undergraduate or graduate level college degree.

Inasmuch as your group qualifies under this definition of institution of learning, you are entitled to an exemption from the sales and use tax for tangible personal property purchased for your use or consumption. However, this exemption does not extend to the purchase of meals and lodging on behalf of the students inasmuch as the organization itself makes no use of the meals or accommodations. Instead, these are consumed by the students. Therefore, the sales and use tax will be applicable to the purchase of meals and lodging by your organization.

Sincerely,

W. H. Forst
State Tax Commissioner

Rulings of the Tax Commissioner