Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Business counseling
Topic
Exemptions
Property Subject to Tax
Date Issued
02-04-1991
February 4, 1991
Re: Request for Ruling: Sales and Use tax
Dear**************
This will reply to your letter of November 21, 1990, in which you requested a ruling whether****************(the Taxpayer) qualifies for an exemption from retail sales and use tax.
FACTS
The Taxpayer is a nonprofit organization exempt from taxation under §501(C)(3) of the Internal Revenue Code organized to provide counseling assistance to individuals who want to start or expand a business or have business problems with their existing businesses. The Taxpayer seeks a ruling on whether they qualify for an exemption from retail sales and use tax.
RULING
There is no general exemption from Virginia Retail Sales and use Tax for nonprofit organizations (See Virginia Regulation §630-10-74, copy enclosed). The only exemptions from the tax are set out in Virginia 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 on all purchases of tangible personal property to the retailer at the time of purchase. If the retailer is not registered to collect the tax, the Taxpayer must report and pay the tax on a Consumer Use Tax Return, ST-7.
If you have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner