Tax Type
Retail Sales and Use Tax
Description
Nonprofit organization exemption criteria
Topic
Exemptions
Date Issued
12-10-1992
December 10 1992
Re: Request for Ruling: Sales and Use Tax
Dear*****************
This will reply to your letter of May 24, 1991 in which you request a ruling whether *********** (the Taxpayer) qualifies for exemption from the Virginia retail sales and use tax.
FACTS
The Taxpayer is a nonprofit organization exempt from income taxation under §501(c)(3) of the Internal Revenue Code. The Taxpayer is a telecommunications consulting firm representing the interests of a diverse group of international and domestic nonprofit public service organizations in the fields of education, health, medicine, public broadcasting, governments, professional associations and religious groups. The Taxpayer continually tracks current technical and regulatory developments in the telecommunications industry and serves as a clearinghouse for telecommunications related information for its member organizations and clients. The Taxpayer provides a wide range of consulting services and provides various reports and publications to members and clients. The Taxpayer is seeking a sales and use tax exemption under Virginia Regulation (VR) 630-10-74, Nonprofit Organizations.
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 Va. Code § 58.1-608 (copy enclosed). While I am mindful of the worthwhile purpose the Taxpayer serves, absent a statutory exemption that would allow the Taxpayer to make purchase 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 for collection of 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 you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
OTP/5225K
Rulings of the Tax Commissioner