Tax Type
Retail Sales and Use Tax
Description
Organization allowed to pay tax to vendor
Topic
Collection of Tax
Taxability of Persons and Transactions
Date Issued
01-18-1989
January 18, 1989
Re: Request For Ruling: Sales and Use Tax
Dear***************************
This will reply to your letter of November 16, 1988, in which you requested a ruling on the application of the sales and use tax to your organization. The ************* ("The Taxpayer"). The Taxpayer, who is currently paying the tax on purchases and not charging the tax on sales, asks specifically whether they must register as a dealer for collection and remittance of the tax.
Based on Virginia Retail Sales and Use Tax Regulation §630-10-74, I find basis for allowing the Taxpayer to continue to pay the tax on all of its purchases from vendors and not charge the tax on its limited sales of tangible personal property.
This ruling is based solely on the particular facts and circumstances presented in the Taxpayer's letter of November 16, 1988, and in your December 19, 1988 telephone conversation with a member of my staff. If the Taxpayer's operations change in any material respect after the date of this ruling, a revised ruling should be sought from the department to determine whether collection of the sales tax will be necessary.
If we can be of further assistance, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner