Tax Type
Retail Sales and Use Tax
Description
School exemption certificates
Topic
Exemptions
Returns/Payments/Records
Date Issued
08-19-1987
August 19, 1987
Re: Ruling Request/ Sales and Use Tax
Dear ********************
This will reply to your letter of April 20, 1987 seeking assistance in resolving a problem which has arisen at *************** (taxpayer) in connection with certain sales of tangible personal property to Virginia schools. We apologize for the delay in providing you with a response to your letter.
FACTS
According to your letter r the taxpayer has frequently encountered resistance when it has requested exemption certificates from schools in connection with their tax exempt purchases. Therefore, the taxpayer seeks permission to make tax exempt sales to the schools without having to obtain exemption certificates from them. In the alternative, the taxpayer requests that the department publish a memorandum to the schools explaining the requirements of the sales and use tax law as applied to their purchases.
RULING
§58.1-623 of the Virginia Code provides that "[a]ll sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, [or] lease... of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt under this chapter." (Emphasis added)
In addition, there is no provision in the sales and use tax law which would relieve a dealer, such as the taxpayer, from the responsibility of obtaining and maintaining copies of properly completed exemption certificates in its files in support of its tax exempt sales of tangible personal property.
Accordingly, I find no basis for granting the taxpayer's request for a waiver from the requirement of obtaining properly completed exemption certificates from Virginia schools when making tax exempt sales to them. However, the taxpayer may attach a copy of this letter when requesting a certificate of exemption from a Virginia school which questions the necessity for the filing of such a certificate.
I hope that all of the foregoing has responded to your question, but let me know if you have any further questions.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner