Tax Type
Retail Sales and Use Tax
Description
Shop supplies charge; Auto repair company
Topic
Collection of Tax
Exemptions
Date Issued
11-30-1987
November 30, 1987
Re: §58.1-1821 Application/Sales and Use Tax
Dear ****************
This will refer to your discussions with ********* regarding the sales and use tax assessment recently issued to your corporation as the result of an audit. As I advised *********** in a May 21, 1987 letter, the department is treating this matter as an application for correction under §58.1-1821 of the Code of Virginia.
I understand that the only issue that is contested in this ease is the application of the tax to purchases of miscellaneous shop supplies and miscellaneous shop supply charges that are added to customer repair bills. For purposes of this audit, the department will abate all sales tax assessed on shop supply charges added to customer repair bills; however, the tax will remain due on purchases of miscellaneous shop supplies that were included in the audit. For the future, your corporation will not be required to collect the sales tax on shop supply charges billed to customers, but will be required to pay the tax on its purchases of miscellaneous shop supplies.
The department will revise its audit as soon as practicable to reflect these changes.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner