Tax Type
Retail Sales and Use Tax
Description
Nonprofit food industry R & D organization
Topic
Taxability of Persons and Transactions
Date Issued
04-28-1989
April 28, 1989
Re: Request for Ruling: Retail Sales and Use Tax
Dear****************
This will reply to your letter dated December 3, l 988, 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 §501(c)(3) of the Internal Revenue Code, sponsors and conducts educational research and scientific projects and programs pertaining to the convenience, health and security in the foodservice industry.
RULING
There is no general exemption from Virginia Retail Sales and Use Tax for nonprofit organizations. The only exemptions from the tax are set out in Virginia Code §58.1-608. 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