Tax Type
Retail Sales and Use Tax
Description
Nonprofit supporting community outreach, scholarship, and mentoring programs
Topic
Exemptions
Date Issued
08-29-1990
August 30, 1990
Dear ****
This will reply to your letter of June 30, 1990 in which you request a ruling whether the ***** ("The Taxpayer") qualifies for an exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer, a nonprofit organization exempt from income tax under §501 (c)(3) of the Internal Revenue Code, is organized to provide support for community outreach programs, a scholarship program, and mentoring programs, and to promote the business skills of the Association membership. The Taxpayer is seeking an exemption from the sales and use tax for purchases of tangible personal property used in their activities.
RULING
There is no general exemption from the 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 forth in Va. Code §58.1-608. 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