Tax Type
Retail Sales and Use Tax
Description
Changes in the design of exemption cards issued by the U. S. Department of State
Topic
Exemptions
Date Issued
11-19-2009
November 19, 2009
United States Department of State
Office of Foreign Missions
Washington, District of Columbia 20520
Dear *******:
Thank you for your recent letter in which you requested that the Virginia Department of Taxation (“TAX”) revise its current regulation, 23 Virginia Administrative Code (“VAC”) 10-210-694, to reflect recent changes in the design of exemption cards issued by the United States Department of State pursuant to the Foreign Missions Act of 1982 (22 U.S.C. 4301 et seq.).
Pursuant to the Foreign Missions Act of 1982, certain foreign diplomats or missions may make certain purchases and sales without incurring any sales or use tax liability. The Office of Foreign Missions issues tax exemption cards to eligible foreign missions, mission personnel and their eligible family members. Mission tax exemption cards are issued to designated representatives of embassies, consulates, and international organizations for use when making official purchases, while personal tax exemption cards are issued to individuals. By presenting these cards, qualified individuals and entities may make certain purchases exempt of the Retail Sales and Use Tax. 23 VAC 10-210-694 provides that the individual cards bear a photograph and name of the diplomat eligible for exemption, as well as an explanation as to the extent of the cardholder’s exemption. Currently, the regulation provides that the exemption information is contained on the face of the card.
The Department of State has recently informed TAX that the tax exempt information is now contained on the reverse side of tax exemption cards, rather than the front. TAX will revise 23 VAC 10-210-694 to reflect this change. TAX will also post this letter to its Policy Library website, available at www.policylibrary.tax.virginia.gov, to inform dealers of this change. TAX will also update its Frequently Asked Questions (“FAQs”) section of its website, www.tax.virginia.gov, to include information concerning the change to these cards.
If you have additional questions or concerns regarding this matter, you may contact******in my Office of Policy and Administration, Policy Development Division at ******.
Sincerely,
Janie E. Bowen
Tax Commissioner
JEB/kp
FAQs for Business
Retail Sales and Use Tax
Diplomatic Exemption
What is the diplomatic exemption?
The United States Department of State grants a diplomatic tax exemption from the Retail Sales and Use Tax to certain foreign diplomats or missions on their purchases and sales.
How is the diplomatic exemption granted?
Exemption cards are issued by the United States Department of State to eligible foreign missions, mission personnel and their eligible family members, through an application process.
How does a cardholder determine the extent of the exemption granted by the card?
The extent to which an individual or mission is exempt from the tax is illustrated on the reverse of his or her exemption card.
For more information on the diplomatic tax exemption program, see www.state.gov/ofm.
Rulings of the Tax Commissioner