Tax Type
Retail Sales and Use Tax
Description
Refund Request for Tax Previously Paid
Topic
Taxability of Persons and Transactions
Date Issued
09-20-2001
September 20, 2001
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in response to your letter of August 24, 2001, concerning a refund request submitted by ***** (the "Taxpayer").
FACTS
The Taxpayer, headquartered in Virginia, purchased a computer network from a Virginia vendor. The vendor ordered components, configured the network, and subsequently delivered the components to the Taxpayer's locations both within and without Virginia. I understand that the vendor invoiced each component separately, and charged and collected the Virginia sales tax on each component of the network sold to the Taxpayer.
You maintain that the items sold by the vendor and delivered by the vendor to Taxpayer locations outside Virginia are exempt from the Virginia tax, as they are sales in interstate commerce. Accordingly, you request a refund of the taxes you paid to the vendor on these items.
RULING
Code of Virginia § 58.1-609.10(4) provides an exemption from the sales and use tax for "[d]elivery of tangible personal property outside the Commonwealth for use or consumption outside of the Commonwealth." This statute is addressed in Title 23 of the Virginia Administrative Code 10-210-780, which provides that:
-
- The tax does not apply to sales of tangible personal property in interstate or foreign commerce. A sale in interstate or foreign commerce occurs only when title or possession to the property being sold passes to the purchaser outside of Virginia and no use of the property is made within Virginia.
This regulation further indicates that a sale in interstate commerce to which the tax does not apply includes the "sale of tangible personal property delivered to the purchaser outside of the state in the seller's vehicle . . . ."
I understand that the network components at issue in this case were delivered by the vendor to the Taxpayer's locations outside Virginia in the vendor's own vehicles. Accordingly, the sales at issue are exempt sales in interstate commerce.
Based on this determination and the facts in this case, the department authorizes a refund to the Taxpayer of the sales taxes paid to the vendor for those items delivered for use outside of Virginia.
If you have any questions regarding this letter, please contact ***** in the Appeals and Rulings Office at *****. Questions regarding the refund procedure may be directed to ***** Audit Supervisor, ****** Office at *****.
Sincerely,
Danny M. Payne
Tax Commissioner
ARO/36638I
Rulings of the Tax Commissioner