Tax Type
Retail Sales and Use Tax
Description
Nonprofit community service organization
Topic
Taxability of Persons and Transactions
Date Issued
11-20-1989
November 20, 1989
Re: Request for Ruling/Sales and Use Tax
Dear***********
This is in reply to your letter of October 19, 1989, in which you request 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, provides a wide array of services and programs designed to foster the spiritual, mental, and physical development of people of all ages. These include youth day care, teen counseling and tutoring, family activities and counseling, and senior citizen fitness, social and educational programs. It also provides needed human services to individuals and families in low income areas. You seek 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. The only exemptions from the tax are set out in Virginia Code §58.1-608 (copy enclosed). While I am mindful of the many worthwhile purposes 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 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
Rulings of the Tax Commissioner