Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization
Topic
Taxability of Persons and Transactions
Date Issued
04-07-1988
April 7, 1988
Re: Request for Ruling/Sales and Use Tax
Dear******************
This is in reply to your letter dated January 19, 1988 in which you request that your organization, be allowed to purchase items under an exemption certificate. I apologize for not responding to your earlier correspondence; however, we have no record of receiving your November 4, 1987 letter.
FACTS
******** (taxpayer) is a nonprofit organization. It is comprised of 48 members and is a member of the and is affiliated with the*************Taxpayer is funded by annual membership dues and two annual fund-raising events. In order to minimize expenditures, taxpayer is seeking an exemption certificate to allow it to purchase items exempt from the Virginia retail sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in §58.1-608 of the Code of Virginia. Absent a statutory exemption that would allow taxpayer to make purchases exempt from the tax, the department has no authority to grant such an exemption.
Therefore, taxpayer is required to pay the tax on all purchases of tangible personal property to the retailer if he is registered to collect the tax. If the supplier is not registered to collect the sales or use tax, taxpayer must report and pay the tax on a Consumer Use Tax Return, Form ST-7.
If you have any further questions, please do not hesitate to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner