Tax Type
Retail Sales and Use Tax
Description
Sales by nonprofit organization; Collection of sales tax
Topic
Collection of Tax
Exemptions
Date Issued
01-18-1994
January 18, 1994
Re: Request for Ruling: Sales and Use Tax
Dear:*************
This will reply to your letter of January 3, 1994, in which you request an exemption from the collection of the sales tax on sales made by your organization's gift shop.
Virginia law does not grant a general exemption to nonprofit organizations, either for the payment of tax on their purchases or the collection of tax upon their sales. Some organizations, like yours, have been granted exemptions by the General Assembly with respect to their purchases, but relatively few have been exempted from their duty to collect the tax on sales that they make. Typically, exemptions from collection of the tax have been granted by the General Assembly only in cases where collection would be impractical, such as door-to-door sales scouting organizations. I am not aware of any instances in which exemptions have been granted for sales by gift shops or other similar retail operations.
In the case of your organization, an exemption was granted in Va. Code §58.1-609.9 (6) for:
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- tangible personal property purchased for use or consumption by a nonprofit museum ... operating for the purpose of commemorating and preserving in a central repository the culture and history of black people in Virginia through a collection of memoirs, artifacts, displays, exhibits and other related historical data. Emphasis added
Although I recognize the benefits that your organization brings to the community, because the statutory exemption does not extend to sales by your organization, I do not have the authority to grant your request. However, if you have any questions on how to carry out the organization's tax collection requirement, please do not hesitate to contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner