Tax Type
Retail Sales and Use Tax
Description
Funeral directors; Body shipped into Virginia
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 February 23, 1989, regarding the application of the sales and use tax to funeral services.
The sales tax need not be collected by a Virginia funeral director in cases where a body is shipped into Virginia for burial, provided that no tangible personal property is sold by the Virginia director. However, the out-of-state funeral director may be required to collect the Virginia use tax when he delivers caskets or other tangible personal property into Virginia (see Va. Code §58.1-612.C and Va. Regulation 630-10-29.1, copies enclosed).
The Virginia sales tax will apply in instances in which an out-of-state funeral director and an instate funeral director are involved in a complete Virginia funeral. In these instances, any tangible personal property sold by the out-of-state director to the Virginia director is considered an exempt sale for resale. However, the Virginia funeral director must collect tax on the final sale.
Similarly, where two Virginia funeral directors are involved in a complete funeral, the director making the final sale would collect the sales tax.
I trust that this will answer your questions, but please feel free to contact the department if further questions arise.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner