Tax Type
Retail Sales and Use Tax
Description
Materials, services and rentals to nonprofit corporations
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
09-03-1985
September 3, 1985
Dear ****
This is in response to your letter of June 21, 1985 in which you request a determination of your organization's eligibility for a sales and use tax exemption.
FACTS
* * * (hereinafter ``Fair') is a nonprofit corporation, chartered in Virginia in 1982. It has been classified by the Internal Revenue Service as an exempt organization under the provisions of Sec. 501(c)(3) of the Internal Revenue Code. The operating profits from the Fair are used for future development of the Fair and occasional contributions are made for charitable purposes.
You request a ruling on Fair's eligibility for a sales tax exemption for purchases of materials, services and rentals in conjunction with its annual event.
RULING
The Virginia Retail Sales and Use Act, Virginia Code Section 58.1-600 et seq., does not provide a general exemption from the imposition of the tax to nonprofit organizations. The only exclusions and exemptions from the tax are enumerated under Virginia Code Section 58.1-608, and absent a specific statutory exclusion or exemption under that section, Fair is not eligible for a tax exemption.
All tangible personal property purchased by and used or consumed by Fair is subject to the tax at the time of the purchase. If the vendor from which the purchase is made is not registered to collect the Virginia Retail Sales and Use Tax, then Fair must report and pay consumer use tax on the cost price of the tangible personal property purchased.
Only tangible personal property purchased by Fair for resale may be purchased under a resale exemption certificate (ST-10). In order to obtain this resale exemption, Fair must first register as a dealer and then collect and remit any taxes collected.
W. H. Forst
Tax Commissioner
Dear ****
This is in response to your letter of June 21, 1985 in which you request a determination of your organization's eligibility for a sales and use tax exemption.
FACTS
* * * (hereinafter ``Fair') is a nonprofit corporation, chartered in Virginia in 1982. It has been classified by the Internal Revenue Service as an exempt organization under the provisions of Sec. 501(c)(3) of the Internal Revenue Code. The operating profits from the Fair are used for future development of the Fair and occasional contributions are made for charitable purposes.
You request a ruling on Fair's eligibility for a sales tax exemption for purchases of materials, services and rentals in conjunction with its annual event.
RULING
The Virginia Retail Sales and Use Act, Virginia Code Section 58.1-600 et seq., does not provide a general exemption from the imposition of the tax to nonprofit organizations. The only exclusions and exemptions from the tax are enumerated under Virginia Code Section 58.1-608, and absent a specific statutory exclusion or exemption under that section, Fair is not eligible for a tax exemption.
All tangible personal property purchased by and used or consumed by Fair is subject to the tax at the time of the purchase. If the vendor from which the purchase is made is not registered to collect the Virginia Retail Sales and Use Tax, then Fair must report and pay consumer use tax on the cost price of the tangible personal property purchased.
Only tangible personal property purchased by Fair for resale may be purchased under a resale exemption certificate (ST-10). In order to obtain this resale exemption, Fair must first register as a dealer and then collect and remit any taxes collected.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner