Tax Type
Retail Sales and Use Tax
Description
Exemption certificates; Resale certificates; Blanket exception or resale certificates
Topic
Exemptions
Date Issued
02-03-1997
February 4, 1997
Re: Request for Ruling: Retail Sales and Use Tax
Dear*****************************
This is in reply to your letter in which you request a ruling on the acceptable use of a multi-jurisdictional exemption certificate for Virginia sales tax purposes, on behalf of your company *************** (the "Taxpayer"). I apologize for the delay in our response.
FACTS
The Taxpayer is an non-Virginia entity which has established nexus with the Commonwealth. The Taxpayer will be selling to re-sellers, and has requested approval for the use of a blanket certificate of exemption form for such sales.
DETERMINATION
The department has allowed for the limited use of blanket certificates of exemption. I have enclosed copies of previous rulings, P.D's 95-303 (12/05/95), and 95-316 (12/15/95), which allow for such use. In considering the precedent established by those rulings, however, l am unable to accept the certificate presented by the Taxpayer. The certificate, as presented, is lacking certain areas of information vital to the proper giving and receiving of such a certificate. In the department's rulings, you will note that a requirement was made that the information necessary for completion of the Virginia Certificate of Exemption Form ST-10, must be the same information necessary for completion of the blanket certificate of exemption form. I have enclosed a copy of the Virginia form ST-10, and a copy of an acceptable blanket certificate of exemption.
Please note that the use of the blanket certificate, as stated in the enclosed rulings is limited to resale use only. I have also enclosed copies of Code of Virginia §§ 58.1-623 and 58.1-623.1, and Virginia Regulation (VR) 630-10-20, which further explains the proper use of certificate of exemption forms.
If you should have any additional questions regarding this matter, or you wish to have the department review a corrected blanket certificate, please contact ********* of the department's Office of Tax Policy at**********
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/11527Q
Rulings of the Tax Commissioner