Tax Type
Retail Sales and Use Tax
Description
Nonprofit performing gospel music for religious purposes
Topic
Exemptions
Date Issued
08-29-1990
August 29, 1990
Re: Request for Ruling: Sales and Use Tax
Dear ************
This will reply to your letter of April 25, 1990 in which you request a ruling whether ***** (the Taxpayer) qualifies for the sales and use tax exemption.
FACTS
The Taxpayer is a nonprofit organization exempt from income tax under §501(c)(3) of the Internal Revenue Code. The Taxpayer's primary purpose is performing gospel music for religious purposes. The Taxpayer is seeking an exemption from the sales and use tax for purchases of tangible personal property used by the organization.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations (See enclosed copy of Virginia Regulation §630-10-74). The only exemptions from the retail sales and use tax are set out in Va. Code §58.1-608 under which the Taxpayer does not qualify. 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 sales 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 sales tax, the Taxpayer must report and pay the use tax on a Consumer Use Tax Return, Form ST-7.
If you have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner