Tax Type
Retail Sales and Use Tax
Description
Dealer records; Computerized cash register summaries
Topic
Reports
Returns/Payments/Records
Date Issued
12-05-1990
December 5, 1990
Dear ****
This will reply to your letter of October 4, 1990, in which you request a ruling concerning record keeping requirements for retail sales and use tax dealers, specifically * * * (the Taxpayer).
FACTS
The Taxpayer operates retail home and building supply stores throughout the Commonwealth of Virginia. The Taxpayer has implemented a system in which all retail sales are entered into its point-of-sale computer-operated cash register system. As a result, this system generates cash register tapes for each register, and daily summaries of receipts for each store. Taxpayer collects and maintains documentary evidence of all exempt sales made. The daily summaries provide a record of all tangible personal property sold by the Taxpayer. A combination of this documentation is used to determine the amount of sales tax the Taxpayer is required to collect and remit to the state of Virginia.
The Taxpayer is requesting a ruling as to whether the summary documentation obtained from its computerized cash registers meets the requirements of Virginia Regulation (VR) 630-10-30. If the daily summary information is sufficient, the Taxpayer requests permission to dispose of the daily cash register tapes from which the documentation is compiled.
RULING
VR 630-10-30 addresses dealer's records and states, in part, "every person who is liable for collection of sales tax . . . is required to keep and preserve for three years adequate and complete records necessary to determine the amount of tax liability."
Based on the facts you have presented, I find that the daily summaries generated by the Taxpayer's computerized cash register, coupled with the documented evidence of all exempt sales, provides "adequate and complete records necessary to determine the amount of tax liability." Thus, it is unnecessary for the Taxpayer to preserve its daily cash register tapes.
If you should have any further questions, please feel free to contact the Department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner