Tax Type
Retail Sales and Use Tax
Description
Financial information services
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
10-25-1989
October 25, 1989
Re: Request for Ruling: Sales and Use Tax
Dear***************
This will reply to your letter of October 4, 1989, regarding the application of the Virginia sales and use tax to financial information services.
In accordance with Virginia Regulations 630-10-97.1 and 630-10-101.2, the transactions described in your letter are not subject to the Virginia sales tax. However, your corporation is subject to the tax on any terminals or other tangible personal property leased, rented, or furnished to Virginia customers in order to receive the service. Collection of the sales tax by your corporation is generally required only in the event that terminals or other tangible personal property are sold outright to customers.
My December 27, 1988 ruling does not in any way indicate a change in the department's policy relative to financial information services. Rather, it dealt with a financial information service in which terminals or other tangible personal property were not furnished to customers. The wording of the ruling was intended to alert the provider of the service that use tax would be due in the event that it later began to furnish tangible personal property in connection with the service and that the sales tax would be due in the event of outright sales of tangible personal property.
I trust that this will clarify the application of the tax to your corporation's activities .
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner