Tax Type
Retail Sales and Use Tax
Description
Audit revised
Topic
Appropriateness of Audit Methodology
Date Issued
11-24-1987
November 24, 1987
Re: §58.1-1821 Application/ Sales and Use Tax
Dear ************************
This will reply to your letter of July 14, 1987 on behalf of ************** (taxpayer) seeking correction of an assessment issued in the above referenced case for the period January, 1983 through June, 1986.
FACTS
The taxpayer is a construction contractor with its principal place of business located outside Virginia. In this connection the taxpayer was audited by the department and held liable for the tax in making certain untaxed purchases from suppliers. The taxpayer contends that most of these purchases qualify for exemption from the tax since they represented purchases of either manufacturer's warranties on materials incorporated into real property construction. purchases from a Virginia vendor for delivery to its out-of-state-place of business, or purchases by a subsidiary of the taxpayer.
The taxpayer has remitted invoices and other documentation in support of these contentions.
DETERMINATION
Based on the invoices and documentation provided, I find basis for correction of the assessment as requested. After these adjustments are made, a revised assessment will be issued to the taxpayer under separate cover.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner