Tax Type
Retail Sales and Use Tax
Description
Nonprofit league for children's services; Exemption criteria
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
05-22-1986
May 22, 1986
Re: Ruling Request: Sales and Use Tax
Dear **********
This will reply to your letters of December 13, 1985 and February 21, 1986, in which you request an exemption from the Virginia Retail Sales and Use Tax for purchases made by ************** (League).
FACTS
League is a nonprofit organization under the definition provided in IRC §501(c)(3). It is organized to provide services to the child welfare field through information services, consultation, publications, personnel training, conferences, and development of standards and program initiatives. These services are designed to enhance the quantity and quality of services for children.
You request a ruling regarding League's qualifications for an exemption from the Virginia Retail sales and Use Tax.
RULING
The Code of Virginia imposes either a retail sales and use tax on all sales of tangible personal property in Virginia or the complementary use tax on the use or consumption of tangible personal property in Virginia. The only exemptions from the tax are the ones specifically provided by statute. There is no general exemption from the sales and use tax available for nonprofit organizations. The courts have long ruled that taxation is the rule and exemptions are strictly construed (Retail Sales and Use Tax Regulation §630-10-35.2). Unless League's activities are statutorily exempted from the tax, no exemption is available. Based upon our of the information that you have provided, League's activities do not qualify under any of the existing exemptions. Therefore, there is no statutory authority to grant League an exemption from the tax.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner