Tax Type
Retail Sales and Use Tax
Description
Sales at conference; Occasional sales
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-17-1985
July 17, 1985
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of June 28, 1985, in which you request a ruling as to the need for the * * * to collect the sales tax on sales made at the * * * to be held in Virginia.
Section 58.1-608.15 of the Code of Virginia exempts an "occasional sale' from the sales and use tax. The term "occasional sale' is in turn defined in Section 630-10-75 of the Virginia Retail Sales and Use Tax Regulations as including "[a] sale by a person who is engaged in sales on three or fewer occasions within one calendar year, except that sales at fairs, flea markets, circuses and carnivals and sales made by peddlers and street vendors are not occasional sales.'
Based upon your comments, the conference at which your organization will conduct sales is a one-time event.
Therefore, provided that your organization conducts two or fewer other sales during 1985, it will not be required to collect the sales tax on its sales at the * * *. Nor will the persons to whom your organization makes sales to incur a use tax liability on their purchases, based upon the above referenced regulation. Of course, tax will be due on all supplies used to produce the items to be sold, you note in your letter that your organization already pays the tax on such purchases.
For your reference, I have enclosed a copy of Regulation §630-10-75 which explains the occasional sale exemption.
Please feel free to contact the department if you have any further questions and best wishes for a successful conference.
W. H. Forst
Tax Commissioner
Re: Request for Ruling/Sales and Use Tax
Dear ****
This will reply to your letter of June 28, 1985, in which you request a ruling as to the need for the * * * to collect the sales tax on sales made at the * * * to be held in Virginia.
Section 58.1-608.15 of the Code of Virginia exempts an "occasional sale' from the sales and use tax. The term "occasional sale' is in turn defined in Section 630-10-75 of the Virginia Retail Sales and Use Tax Regulations as including "[a] sale by a person who is engaged in sales on three or fewer occasions within one calendar year, except that sales at fairs, flea markets, circuses and carnivals and sales made by peddlers and street vendors are not occasional sales.'
Based upon your comments, the conference at which your organization will conduct sales is a one-time event.
Therefore, provided that your organization conducts two or fewer other sales during 1985, it will not be required to collect the sales tax on its sales at the * * *. Nor will the persons to whom your organization makes sales to incur a use tax liability on their purchases, based upon the above referenced regulation. Of course, tax will be due on all supplies used to produce the items to be sold, you note in your letter that your organization already pays the tax on such purchases.
For your reference, I have enclosed a copy of Regulation §630-10-75 which explains the occasional sale exemption.
Please feel free to contact the department if you have any further questions and best wishes for a successful conference.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner