Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization; Designated accrediting agency; Exemption criteria
Topic
Taxability of Persons and Transactions
Date Issued
08-02-1988
August 2, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Nonprofit Organizations
Dear*********************
This will reply to your letter of July 13, 1988, in which you requested a ruling whether your nonprofit organization qualifies for exemption from sales and use tax.
FACTS
************* ("The Taxpayer") is an organization exempt from income taxation under §501(c)(3) of the Internal, Revenue Code and is designated an accrediting agency by the State Department of Education.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions from the tax are set out in Va. Code §58.1-608. Absent a statutory exemption that would allow the Taxpayer to make purchases exempt from the tax, the Department has no authority to grant such an exemption. Please note that Senate Bill 87, designed to exempt from the sales and use tax tangible personal property used or consumed by nonprofit educational accrediting agencies, was introduced in the Virginia General Assembly in 1986 but was never enacted.
Therefore, the Taxpayer is required to pay the tax on all purchases of tangible personal property to the retailer at the time of purchase. If the retailer is not registered to collect the tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return, ST-7.
If I can be of further assistance, please contact the Department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner