Tax Type
Retail Sales and Use Tax
Description
Training manual sales by federal agency
Topic
Exemptions
Statute of Limitations
Date Issued
03-11-1991
March 11, 1991
Re: Request for Ruling: Sales and Use Tax
Dear****************
This will reply to ********** letter of November 12, 1990, and your follow-up letter of December 21, 1990, requesting a ruling on the applicability of the sales and use tax to sales of training manuals and associated materials by the**************(the "Taxpayer") to its members or in connection with its official courses and obtained from its national headquarters.
RULING
The department has previously determined that based upon the provisions of 36 USCA §§ 1-13 the Taxpayer is an agency of the federal government and is entitled to exemption from the sales and use tax under the governmental exemption provided in Va. Code § 58.1-608(1)(e). This exemption extends to both purchases and sales of tangible personal property since states cannot constitutionally impose a direct tax on the United States or its instrumentalities.
Thus, sales of training manuals and related materials by the Taxpayer to its members and in connection with its courses are not subject to the sales tax.
The Taxpayer may seek refunds of tax previously paid to the department. However, such refunds are subject to the three-year statute of limitations prescribed in Va. Code § 58.1-1823. Refund requests must be filed with the department within three years from date the tax became due.
Either a dealer or a consumer may apply for a refund of sales tax paid. Virginia Regulation (VR) 630-1-1823, copy enclosed, explains the procedures for such. Additionally, VR 630-10-89, copy enclosed, further explains the refunding of sales and use taxes to dealers. You will note that in order for the Taxpayer to receive a refund, it must show that the tax erroneously collected was paid by it and not passed on to consumers, or that the tax was collected from consumers as a tax and subsequently refunded to them.
Please forward the necessary information to the department's office Services Division, Taxpayer Assistance Section, P. O . Box 6-L, Richmond, Virginia 23282.
If you have any further questions about this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner