Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization providing terminally ill with medical care and services
Topic
Taxability of Persons and Transactions
Date Issued
12-07-1988
December 7, 1988
Re: Request for Ruling: Retail Sales and Use Tax
Dear**************************
This will reply to your letter dated October 28, 1988, in which you requested a ruling whether your organization qualifies for exemption from sales and use tax.
FACTS
*********** ("The Taxpayer"), a nonprofit organization exempt from income taxation under Section 501(c)(3) of the Internal Revenue Code, provides health, medical care and services to the terminally ill and their families.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations (see enclosed copy of Virginia Regulation §630-10-74). The only exemptions from the tax are set out in §58.1-608 of the Code of Virginia (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.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner