Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; National patriotic veterans organization
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-02-1990
July 2, 1990
Re: Request for Ruling: Sales and Use Tax
Dear ****
This is to reply to your letter of June 9, 1990, in which you request a ruling whether ***** ("The Taxpayer") qualifies for an exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, was organized as a national, nonprofit, patriotic veterans' organization. The Taxpayer is currently engaged in erecting a memorial within the national capital area to honor the **** war dead. The Taxpayer seeks an exemption allowing it to purchase materials and services for construction 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 (See VR 630-10-74 of the Virginia Retail Sales and Use Tax Regulations, copy enclosed). The only exemptions from the tax are set out in Va. Code §58.1-608 (copy enclosed). 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 to the retailer on all purchases of tangible personal property if the retailer is registered to collect the tax. 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