Retail Sales and Use Tax
Nonprofit organization providing free tapes to visually handicapped
Taxability of Persons and Transactions
October 31, 1988
Re: Request for Ruling/Retail Sales and Use Tax
This will reply to your letter of October 13, 1988, in which you requested a ruling whether your nonprofit organization qualifies for exemption from sales and use tax.
************* ("The Taxpayer"), an organization exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code, tape-records books, magazines, and other printed materials for visually and perceptually handicapped people. The Taxpayer provides the tapes free of charge to those in need.
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 the Department.
W. H. Forst