Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization
Topic
Taxability of Persons and Transactions
Date Issued
09-30-1988
September 30, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Dear***************
This will reply to your letter of August 23, 1988, in which you requested a ruling whether your nonprofit organization qualifies for exemption from sales and use tax. This ruling will also respond to your request regarding the general makeup of the nonprofit exemption and compliance with the Virginia Retail Sales and Use Tax Act.
FACTS
********** ("The Taxpayer") is a regional umbrella cultural agency and is an organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions from the tax are set out in Va. Code §58.1-608. Absent a statutory exemption that would allow the Taxpayer to make purchases exempt from the tax, the Department has no authority to grant such an exemption.
Based on the information provided, we see no basis for exemption. However, I have enclosed a copy of the above cited statute and if you believe you qualify under any of the specific exemptions listed, I will be happy to review this request again.
However, assuming that no exemption is available, the Taxpayer must pay the tax on all purchases of tangible personal property to the retailer at the time of purchase. Va. Code §58.1-603 (copy enclosed). Ii the retailer is not registered to collect the tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return, ST-7.
If we can be of further assistance, please contact us.
Sincerely.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner