Tax Type
Retail Sales and Use Tax
Description
Registration to collect the tax by an out-of-state business; Nexus and prior years
Topic
Collection of Tax
Date Issued
08-26-1988
August 26, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Dear********************
This will reply to you letter dated June 3, 1988, in which you requested a ruling as to whether ************* ("The Taxpayer") may voluntarily register as a dealer for collection and remittance of the Virginia Sales Tax without liability for past years.
FACTS
The Taxpayer operates a mail order business which sells by direct mail to residents of the Commonwealth of Virginia.
RULING
Virginia Code §58.1-612 (copy enclosed), sets forth the "nexus" requirements which give the Commonwealth the authority to require dealers to register for collection and remittance of the sales tax. The Taxpayer may voluntarily register as a dealer for collection and payment of the tax (forms enclosed), assuming that the Taxpayer did not meet any of the "nexus" requirements. In this instance the Taxpayer may voluntarily register as a dealer for collection and remittance of the tax and the Department will not hold the Taxpayer liable for any prior periods.
Nothing in this ruling precludes the Department from normal audit and collection procedures within the statute of limitations period if the Taxpayer previously met the nexus requirements.
If you have any further questions, please contact the Department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner