Tax Type
Retail Sales and Use Tax
Description
Multijurisdictional exemption certificate does not meet state requirements
Topic
Exemptions
Date Issued
05-18-2007
May 18, 2007
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****:
This is in reply to your letter in which you request approval for the use of a multijurisdictional resale certificate of exemption form for the purchase of items used by your company, ***** (the "Taxpayer") in its advertising operations. I apologize for the delay in responding to your letter.
RULING
The Department has allowed the use of a "blanket" certificate of exemption with respect to the resale exemption. In prior rulings, the Department has set forth the requirements for the use of a "blanket" exemption certificate in place of the Department's prescribed Resale Certificate of Exemption, Form ST-10. The requirements stipulate that the information necessary for completion of Form ST-10 must be the same information necessary for completion of the "blanket" certificate of exemption form. See Public Document 95-316 (12/15/95).
Based on a review of the Taxpayer's blanket exemption certificate, I find that the Taxpayer's multijurisdictional exemption certificate does not meet the requirements set out in the referenced public document. Therefore, the Taxpayer must continue to use the Department's Form ST-10 when purchasing tangible personal property for resale. The Taxpayer is correct in attaching a copy of the Form ST-10 to the reverse side of the blanket exemption certificate.
With regard to the Taxpayer's advertising operations, Va. Code § 58.1-609.6 5 provides an exemption from the retail sales and use tax for advertising, as defined in Va. Code § 58.1-602. The exemption applies to advertising placed in certain media including newspapers, magazines, billboards, direct mail, radio and television. The regulations under Title 23 of the Virginia Administrative Code 10-210-40 through 10-210-43 discuss the application of the exemption and distinguish between media and non-media advertising.
As an advertising business, the Taxpayer must use Form ST-10A, copy enclosed, when purchasing writing, graphic design, mechanical art, photography, etc., for use in media advertising. Form ST-10A was created to specifically apply to advertising agencies and printers for catalogs and other printed materials distributed outside of Virginia, for advertising placed in media campaigns and for advertising supplements. See Public Documents 90-60 (4/12/90), 92-19 (4/14/92), 95-58 (3/24/95) and 95-165 (6/23/95). Form ST-10, the resale certificate of exemption, should be used when purchasing tangible personal property that will not be used in a media advertising campaign and will be resold to the Taxpayer's clients.
The Code of Virginia section, regulations and public documents cited are available on-line at www.tax.virginia.gov in the Tax Policy Library section of the Department's website. If you have any questions regarding this ruling, please contact ***** of the Department's Office of Policy and Administration, Appeals and Rulings, at *****@tax.virginia.gov or at *****.
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- Sincerely,
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- Janie E. Bowen
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- Tax Commissioner
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- Janie E. Bowen
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AR/56965Q
Rulings of the Tax Commissioner