Tax Type
Retail Sales and Use Tax
Description
Purchases by nonprofit organizations
Topic
Taxability of Persons and Transactions
Date Issued
09-09-1985
September 9, 1985
Dear ****
This is in reply to your letter of July 18, 1985, in which you request that your organization, * * * be allowed to purchase items under an exemption certificate for use at your annual reunion.
FACTS
* * * is a nonprofit organization of the veterans of the * * *. It holds annual reunions and this year will hold its reunion in Arlington, Virginia to celebrate the 40th anniversary of the end of World War II. In order to minimize the expenditures at this reunion, your organization is seeking an exemption certificate to allow it to purchase supplies exempt of the Virginia retail sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Virginia Code Section 58.1-608. Absent a statutory exemption that would allow your organization to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Your organization is required to pay the tax at the time of the purchase to the dealer if he is registered to collect the tax. If the supplier is not registered to collect the sales and use tax, your organization must report and pay the tax on a Consumer Use Tax Return, Form ST-7.
W. H. Forst
Tax Commissioner
Dear ****
This is in reply to your letter of July 18, 1985, in which you request that your organization, * * * be allowed to purchase items under an exemption certificate for use at your annual reunion.
FACTS
* * * is a nonprofit organization of the veterans of the * * *. It holds annual reunions and this year will hold its reunion in Arlington, Virginia to celebrate the 40th anniversary of the end of World War II. In order to minimize the expenditures at this reunion, your organization is seeking an exemption certificate to allow it to purchase supplies exempt of the Virginia retail sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Virginia Code Section 58.1-608. Absent a statutory exemption that would allow your organization to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Your organization is required to pay the tax at the time of the purchase to the dealer if he is registered to collect the tax. If the supplier is not registered to collect the sales and use tax, your organization must report and pay the tax on a Consumer Use Tax Return, Form ST-7.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner