Tax Type
Retail Sales and Use Tax
Description
Sale of property vs. sale of services
Topic
Taxability of Persons and Transactions
Date Issued
09-19-1989
September 19, 1989
Re: Request for Ruling/Sales and Use Tax
Dear******************
This will reply to your letter of February 25, 1989 in which you request a ruling as to the sales and use tax application to your business activities.
The Virginia sales tax generally applies only to the sale, lease or rental of tangible personal property. Therefore, the lease or rental of office equipment or furniture by the taxpayer is subject to the tax, as is the sale of photocopies.
Conversely, sales of services, such as dictation, transcription, mailing, consulting, meeting registration, telex, and facsimile services are not taxable. Word processing and typing services have also been deemed nontaxable in the enclosed ruling; however, the sale of additional copies is subject to the tax.
Finally, the rental of complete office space is not subject to the tax as this is a rental of real estate.
If you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner