Document Number
95-34
Tax Type
Retail Sales and Use Tax
Description
Government transactions; Foreign diplomats
Topic
Taxability of Persons and Transactions
Date Issued
03-03-1995
March 3, 1995



Re: Ruling Request: Sales and Use Tax


Dear****************

This will reply to your letter of January 20, 1995 requesting the Commonwealth of Virginia's position regarding the application of sales tax to diplomatic personnel.

The Vienna Conventions on Diplomatic and Consular Relations are treaties that exempt foreign diplomatic and consular personnel from the payment of sales taxes. However, not all foreign diplomatic and consular personnel receive sales tax exemption privileges. Under the 1982 Foreign Missions Act, sales tax exemption privileges are granted on the basis of reciprocity. If American Embassy and Consular personnel receive sales tax exemption in foreign countries, then the official representatives of those countries are granted sales tax exemption in the United States.

Virginia Regulation (VR) 630-10-45(F), (copy enclosed), provides that no sales or use tax is applicable to "[s]ales to or purchases by certain foreign diplomats." The regulation goes on to provide that the persons entitled to exemption are issued diplomatic exemption cards by the United States Department of State, Office of Foreign Missions.

Therefore, any exemption afforded diplomatic or consular personnel is dependent upon the type of tax exemption card issued by the Office of Foreign Missions, U.S. Department of State.

I trust that our response has assisted you. If we can be of any further assistance, please contact the department at your convenience.

                        • Sincerely,


                          Danny M. Payne
                          Tax Commissioner



OTP/9199Q

Rulings of the Tax Commissioner

Last Updated 08/25/2014 16:46