Tax Type
Retail Sales and Use Tax
Description
Veterans organization
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
10-31-1989
October 31, 1989
Re: Request for Ruling/Sales and Use Tax
Dear*****************
This will reply to your letter of September 28, 1989 in which you request a ruling as to whether your organization qualifies for exemption from the sales and use tax.
FACTS
********(hereinafter Taxpayer) is a veterans organization which has been granted exemption from the Federal Income Tax under section 501(c)(19) of the Internal Revenue Code. The Taxpayer is seeking exemption 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 ( see §630-10-74 of the Virginia Retail Sales and Use Tax Regulation). The only exemptions from the tax are set out in Virginia Code §58.1-608 (copy enclosed). While I am mindful of the worthwhile purpose 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, Form ST-7.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner