Tax Type
Retail Sales and Use Tax
Description
Generic Exemption Certificates
Topic
Exemptions
Date Issued
12-15-1995
December 15, 1995
Re: Ruling Request: Sales & Use Tax
Dear*****************
Your letter of July 13, 1995 inquired as to the acceptable use of a blanket multi-jurisdictional exemption certificate 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 had not been allowed, since specific exemption forms were available for the varying exemptions allowed by Virginia law.
However, based on a comparison of the blanket exemption certificate enclosed with your letter and the Certificate of Exemption Form ST-10 developed by the department, I will allow for the use of the blanket certificate. However, the use of the blanket form 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 Form ST-10 will result in the assessment of tax on the transaction.
The department recommends that the "Notes" section of the "Instructions Regarding Uniform Sales & Use Tax Exemption" be revised to include the allowances listed on the enclosed Form ST-10 in the suggested following manner:
-
- Virginia will accept this certificate in lieu of the Virginia Certificate of Exemption Form ST-10, for use in certifying that all tangible personal property purchased from the supplier named on this form is:
a) Tangible personal property for RESALE only,
b) Tangible personal property for future use by a person for taxable LEASE OR RENTAL as an established business, or part of an established business, or incidental or germane to such business, or a simultaneous purchase and taxable leaseback,
c) Packaging materials such as containers, labels, sacks, cans, boxes, drums, or bags that are marketed with a product being sold and become the property of the purchaser.
- Virginia will accept this certificate in lieu of the Virginia Certificate of Exemption Form ST-10, for use in certifying that all tangible personal property purchased from the supplier named on this form is:
Additional forms which the department has authorized for use are shown in the enclosed listing. If you are in need of any of the listed forms, you should contact the department's forms office at (804) 367-8055.
If you have any questions regarding this matter, please contact*******at******** of the department's Office of Tax Policy.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/10544Q
Rulings of the Tax Commissioner