Tax Type
Retail Sales and Use Tax
Description
Nonprofit training professionals in holistic healing
Topic
Exemptions
Date Issued
08-22-1990
August 22, 1990
Re: Request for Ruling/Sales and Use Tax
Dear ****
This is in reply to your letter dated May 12, 1990 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 education and training of professionals in the field of holistic healing. The Taxpayer is seeking an exemption from the Virginia retail sales and use tax for purchases used in the operation of the organization.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations (see Virginia Retail Sales and Use Tax Regulation §630-10-74). The only exemptions from the tax are set out in Va. 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 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