Tax Type
Retail Sales and Use Tax
Description
Generic exemption certificates
Topic
Exemptions
Date Issued
12-05-1995
December 5, 1995
Re: Ruling Request: Sales & Use Tax
Dear*****************:
This replies to your recent letter regarding your inquiry as to the acceptable use of blanket multi-jurisdictional exemption certificates for Virginia sales tax purposes.
Enclosed are copies of Code of Virginia §§ 58.1-623, 58.1-623.1 and Virginia Regulation (VR) 630-10-20 which set out the proper use of the certificate of exemption form. Code of Virginia § 58.1-623(B) provides that, "[s]uch certificate... shall be substantially in such form as the Tax Commissioner may prescribe." Previously, the use of a "generic" or "blanket" exemption certificate has not been allowed, since specific exemption forms are available for the varying exemptions allowed by Virginia law.
Based on a comparison of the blanket exemption certificates enclosed with your letter and the Certificate of Exemption Form ST-10 developed by the department, l will allow for the use of either of the blanket certificates in limited circumstances. However, please note that the use of the blanket forms will require all of the information currently required for the completion of the Form ST-10, and will be limited to the exemption allowances listed thereon. Any use of the blanket form for Virginia purposes other than those purposes listed on the From ST-10 will result in the assessment of tax on the transaction.
With regard to the auditor's recommendation that the Form ST-20 be utilized, I must concur. The Form ST-20 was developed for specific exemptions allowed by the Code of Virginia and I must deny the use of a blanket certificate in place of the Form ST-20.
I have enclosed copies of the Certificate of Exemption Forms ST-10 and ST-20. If you are in need of additional forms or any other particular exemption certificate, you should contact the department's forms office at (804) 867-8055. A listing of available forms is also enclosed.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10545Q
Rulings of the Tax Commissioner