Tax Type
Retail Sales and Use Tax
Description
Charitable nonprofit organization; No general exemption
Topic
Exemptions
Date Issued
08-22-1994
August 22, 1994
Re: Request for Ruling: Sales and Use Tax
Dear**************
This is in reply to your letter of June 3, 1994 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 organized exclusively for charitable purposes to benefit the************* In carrying out its charitable function, the Taxpayer is authorized to accept, hold, invest, and administer any gifts, legacies, bequests, funds or property and to distribute such property in accordance with the terms of the gifts, bequest or devises set forth by the donor. The Taxpayer is seeking an exemption for the Virginia retail sales and use tax.
RULING
There is no general exemption from the Virginia retail sales and use tax for nonprofit organizations. The only exemptions are those set out in Va. Code §§58.1-609.1 through 58.1-609.13; a review of the current statutory exemptions revealed none that would apply to an organization like the Taxpayer. While I am mindful of the worthwhile purpose the Taxpayer serves, 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 tax to the retailer on all purchases of tangible personal property in Virginia 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,
Danny M. Payne
Tax Commissioner
OTP/8094K
Rulings of the Tax Commissioner