Tax Type
Retail Sales and Use Tax
Description
Parts locating service
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
02-11-1993
February 11, 1993
Re: Request for Ruling: Retail Sales & Use Tax
Dear ****
This will respond to your request for a ruling regarding the taxability of a service provided by your company, **** (the "Taxpayer").
FACTS
The Taxpayer provides a service whereby it responds to insurance company requests for auto parts. Its employees keypunch parts requests into a central computer and telephone salvage yards to locate the auto parts. The parts information is then entered into the central computer and the information is provided to insurance companies by telephone. The Taxpayer charges a per request fee for this service and seeks a ruling on the appropriate tax treatment of its charge.
RULING
Va. Code §58.1-608(A)(5)(a) provides an exemption from the sales and use tax for "professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made."
Based on the information provided, the above transaction constitutes a nontaxable service under Va. Code §58.1608(A)(5)(a).
If you have any further questions, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
OPT/5983H
Rulings of the Tax Commissioner