Tax Type
Retail Sales and Use Tax
Description
Medical, dental, and optical supplies and drugs; Nutritional supplements
Topic
Taxability of Persons and Transactions
Date Issued
04-24-1996
April 24, 1996
Re: Request for Ruling: Retail Sales and Use Tax
Dear****
This is in reply to your letter of February 29, 1996. You request a ruling regarding the application of sales and use tax to sales of nutritional supplements by a network of independent distributors. You provide a product list and inquire whether these items qualify for exemption as medicines and drugs or are taxable as food items. Your associate,**********recently spoke with a member of my Tax Policy staff and also requested information regarding an agreement where multi-level marketing companies collect and remit the sales tax on behalf of their distributors.
I have enclosed P.D. 90-61 (4/12/90) which addresses the sales tax application to nutritional supplements used in a weight reduction program. Dietary/nutritional supplements do not constitute controlled drugs or proprietary medicine, as described in Schedules I through VI of the Virginia Drug Control Act (Chapter 34 of the Code of Virginia § 54.1); therefore, such supplements are subject to the sales and use tax. Virginia does not exempt food items from its retail sales and use taxes.
I am also enclosing P.D. 93-143 (6/9/93) which addresses the department's policy as it applies to multi-level marketing companies. A copy of an agreement is enclosed. Should your client wish to enter into an agreement, the enclosed registration form must be completed and returned with the agreement. If not, please provide to the department a list of your client's distributors so that we may advise them of their obligation to register and collect the tax.
You may return the information to ***** Office of Tax Policy, P.O. Box 1880, Richmond, Virginia 23282-1880. You may also contact her at***********
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11079J
Rulings of the Tax Commissioner