Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization devoted to the study of peace
Topic
Taxability of Persons and Transactions
Date Issued
10-26-1988
October 26, 1988
Re: Request for Ruling/Retail Sales and Use Tax
Nonprofit Organizations
Dear********************
This will reply to your letter of October 3, 1988, in which you requested a ruling whether your nonprofit organization qualifies for exemption from sales and use tax.
FACTS
*************** ("The Taxpayer"), an organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, is devoted to the study of peace and related issues. The Taxpayer conducts research on foreign policy issues, publishes a magazine, and sponsors several series of meetings for the foreign policy community in the District of Columbia.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations ( See Virginia Retail Sales and Use Tax Regulations 630-10-74, copy enclosed). The only exemptions from the tax are set out in Virginia Code §58.1-608, (copy enclosed). While I am mindful of the worthwhile purpose that the Taxpayer serves, 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.
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 us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner