Tax Type
Retail Sales and Use Tax
Description
Nonprofit n providing services to terminally ill persons and their families
Topic
Exemptions
Date Issued
09-07-1990
September 7, 1990
Re: Request for Ruling: Sales and Use Tax
Dear****************
This will reply to your letter of August 22, 1990 in which you request a ruling whether your organization qualifies for exemption from the sales and use tax.
FACTS
****** ("the Taxpayer"), a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, provides services to the terminally ill and their families. The Taxpayer is seeking an exemption from the sales and use tax for its purchases of tangible personal property.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations ( see Virginia Regulation 630-10-74). The only exemptions from the tax are set out in Virginia 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 of the tax, the department has no authority to grant such an exemption.
Therefore, the Taxpayer is required to pay the tax to its retailers on all purchases of tangible personal property. If a retailer is not registered to collect the tax, the Taxpayer must report and pay use tax on a Consumer Use Tax Return, Form ST-7.
If you have additional questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner