Tax Type
Retail Sales and Use Tax
Description
Refund requested from erroneously paid Virginia sales tax to two vendors
Topic
Assessment
Payment and Refund
Records/Returns/Payments
Date Issued
08-26-2014
August 26, 2014
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear *****:
This is in response to your letter submitted on behalf of ***** (the "Taxpayer") in which you seek correction of the retail sales and use tax assessment issued for the period January 2005 through December 2008. The Taxpayer also presents a refund request to the Department for the period January 2005 through September 2009. I apologize for the delay in responding to your appeal.
FACTS
Pursuant to Va. Code § 58.1-1821, the Taxpayer filed an appeal with the Department, contesting the assessment of tax on certain transactions that occurred during the audit period. The Taxpayer provided documentation in support of its contention that the transactions at issue had been improperly included in the audit. Along with its appeal, the Taxpayer included a copy of the refund claim that had been previously filed during the performance of the audit at issue. The appeal and refund claim will be addressed separately below.
DETERMINATION
Appeal
The documentation provided with the Taxpayer's appeal has been reviewed. Based upon this review, revisions have been made to the audit assessment. It is my understanding that the Taxpayer agrees with the revisions that have been made and with the revised assessment. Accordingly, this serves as a final determination with respect to the issues appealed by the Taxpayer for the audit period at issue.
Refund Claim
The Taxpayer requested a refund, maintaining that it erroneously paid Virginia sales tax to two of its vendors - ***** ("Vendor A") and ***** ("Vendor B"). Documentation provided by the Taxpayer was reviewed by the Department's audit staff during the performance of the audit. Based upon this review, the documentation was deemed sufficient to grant the Taxpayer's refund request with respect to Vendor A. However, the documentation provided for purchases made from Vendor B is insufficient to prove that the Taxpayer erroneously paid the Virginia sales tax to Vendor B. Therefore, the Taxpayer's refund request with respect to Vendor B cannot be granted.
CONCLUSION
The revised audit assessment is due and payable. The Taxpayer will be allowed a refund, plus refund interest accrued to date, with respect to the erroneous tax paid to Vendor A. A revised bill, with interest accrued to date, will be mailed shortly to the Taxpayer. No further interest will accrue provided the outstanding assessment is paid within 30 days from the date of the bill. The Taxpayer should remit its payment to: Virginia Department of Taxation, 600 E. Main Street, 23rd Floor, Richmond, Virginia 23219, Attn: *****. If you have any questions concerning payment of the assessment, you may contact ***** at *****.
The Code of Virginia section cited is available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department's web site. If you have any questions about this response, you may contact ***** in the Department's Office of Tax Policy, Appeals and Rulings, at *****.
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- Sincerely,
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Craig M. Burns
Tax Commissioner
AR/1-5321753524.P
Rulings of the Tax Commissioner