Tax Type
Retail Sales and Use Tax
Description
Shop supplies; Charges by paint and body shops
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
10-23-1987
October 23, 1987
Re: §58.1-1821 Application/Sales and Use Tax
Dear ******************
This will reply to your letter of November 21, 1986, in which you submit an application for correction of a sales and use tax assessment issued to******** as the result of an audit.
After review of this situation, the department will remove from its audit all paint and body shop materials charges that were made to customers. The materials themselves (rags, cleaners, etc.) will remain in the audit, however. For the future, your corporation will be required to pay the tax on all materials purchased for use in the paint and body shop, but will not be required to collect the sales tax from customers on paint and body shop materials charges.
In addition, the department will remove from its audit the purchase of a surface mount lift, upon which the tax was paid to your supplier.
The department will complete its revisions to your corporation's audit as soon as practicable. If you have any questions, please do not hesitate to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner