Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations; Exemption criteria
Topic
Exemptions
Date Issued
01-11-1990
January 11, 1990
Re: Request for Ruling: Sales and Use Tax
Dear ****
This is in reply to your letter of October 25, 1989, in which you request a ruling whether your organization qualifies for exemption from the sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations (see §630-10-74 of Virginia Retail Sales and Use Tax Regulations). The only exemptions from the tax are set out in Virginia Code §58.1-608 (enclosed). 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.
We have requested a copy of the Taxpayer's articles of incorporation and a statement of purpose in order to respond to your inquiry. To date we have not received this information, and therefore, we cannot make a determination in your case.
Unless the Taxpayer meets one of the specific exemptions, it will be 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