Tax Type
Retail Sales and Use Tax
Description
Nonprofit, assisting other nonprofit organizations with fund raising
Topic
Taxability of Persons and Transactions
Date Issued
03-23-1989
March 23, 1989
Re: Request for Ruling: Retail Sales and Use Tax
Nonprofit Organizations
Dear**************
This will reply to your letter dated February 15, 1989, in which you requested a ruling whether your organization qualifies for exemption from sales and use tax.
FACTS
******** ("The Taxpayer"), a nonprofit organization exempt from income taxation under § 501(c)(3) of the Internal Revenue Code, assists other nonprofit organizations in the solicitation of funds from federal employees through the annual Combined Federal Campaign program which is administered by the Office of Personnel Management.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations (see enclosed copy of §630-10-74 of the Virginia Retail Sales and Use Tax Regulations). The only exemptions from the tax are set out in §58.1-608 of the Code of Virginia. While I am mindful of the worthwhile purpose that the Taxpayer serves, 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.
Therefore, the Taxpayer is required to pay the tax on all purchases of tangible personal property to the retailer at the time of purchase. If 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, copy enclosed.
If we can be of further assistance, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner