Tax Type
Retail Sales and Use Tax
Description
Nonprofit missionary-evangelist organization working with the poor
Topic
Taxability of Persons and Transactions
Date Issued
12-07-1988
December 7, 1988
Re: Request for Ruling: Sales and Use Tax
Dear**********************
This is in reply to your letter dated November 16, 1988 requesting a ruling whether your organization qualifies for exemption from the sales and use tax.
FACTS
********************("The Taxpayer"), a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code, is a missionary-evangelist organization working entirely with the poor. You seek an exemption to allow the Taxpayer to purchase items exempt from the Virginia retail sales and use tax.
RULING
There is no general exemption from the 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.
Although the Taxpayer is a religious organization, it does not qualify for the exemption granted in §58.1-608(38) of the Code of Virginia for certain nonprofit churches. The exemption applies only to purchases of a nonprofit church with a congregation or church membership which regularly meets at a single location for worship services. Further, the exemption is generally limited to tangible personal property used in the religious worship service or used inside the public church building in carrying out the work of the church.
Therefore, the Taxpayer is required to pay the tax to the retailer on all purchases of tangible personal property if the retailer is registered to collect the tax. 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. Form ST-7.
If I can be of further assistance, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Enclosures
Rulings of the Tax Commissioner