Tax Type
Retail Sales and Use Tax
Description
Valid exemption certificates: Documentation
Topic
Exemptions
Records/Returns/Payments
Date Issued
02-11-2011
February 11, 2011
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This reply is in response to your letter in which you request correction of the retail sales and use tax assessment issued to ***** (the "Taxpayer") for the period January 2006 through December 2008. I apologize for the delay in the Department's response.
FACTS
The Taxpayer was audited and assessed the retail sales tax on sales reported as tax exempt but not supported by valid exemption certificates. The Taxpayer protests the assessment and presents exemption certificates to substantiate the assessed sales.
DETERMINATION
Virginia Code 58.1-623 A states, "[T]he burden of proving that a sale... of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt ...." Title 23 of the Virginia Administrative Code 10-210-280 A instructs that "a certificate that is incomplete, invalid, infirm or inconsistent on its face is never acceptable ...." Additionally, as discussed in Public Document 95-112 (5/11/95), exemption certificates secured during or after the audit are accepted only if they are valid for the specific transaction.
The Taxpayer has presented exemption certificates with its appeal that are complete and consistently support the exempt sale of the specific products sold to those customers. Therefore, I will agree to remove the sales on lines 1 through 6 in the Exceptions List of Contested Sales. This matter will be referred to the audit staff to make the appropriate adjustments as warranted.
The Code of Virginia section, regulation and public document 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 about this determination, you may contact ***** in the Office of Tax Policy, Appeals and Rulings at *****.
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- Sincerely,
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- Linda D. Foster
Deputy Tax Commissioner
- Linda D. Foster
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AR/1-4414449089.M
Rulings of the Tax Commissioner