Tax Type
Retail Sales and Use Tax
Description
Student tuition meals
Topic
Taxability of Persons and Transactions
Date Issued
11-04-1987
November 4, 1987
Re: Ruling Request/ Sales and Use Tax
Dear ***************
This will reply to your letter of August 3, 1987 seeking a ruling on the correct application of the sales and use tax to certain sales of catered meals by *********** (taxpayer).
FACTS
According to your letter, in the past, the taxpayer has provided catered meals for participants in a summer *********(Institute) sponsored by a State University. Rather than provide the meals itself, the University in this case contracted with the taxpayer to provide catered meals for persons participating in the Institute who were required to live in and take their weekday meals in special foreign language houses located on University property. Participants were expected to pay the University in advance, for all costs of attending the Institute, including costs for tuition, residence in the foreign language houses, and meals.
Accordingly, you ask whether the meals provided by the taxpayer qualify for exemption from the sales and use tax as meals provided pursuant to a college boarding plan under subsection (4) of Virginia Retail Sales and Use Tax Regulation 630-10-96.
RULING
Virginia Sales and Use Tax Regulation 630-10-96(4) provides in pertinent part that an "institution must collect the tax on retail sales of meals to students or others if the price of the meals is not included in room, board or tuition charges or fees."
Since the price for the catered meals in this case was included in the room, board or tuition charges set by the University for participation in the Institute, I find basis for concluding that such meals qualify for exemption from the tax.
I hope that 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