Tax Type
Retail Sales and Use Tax
Description
Nonprofit organizations, Nonprofit disease education organization.
Topic
Taxability of Persons and Transactions
Date Issued
11-03-1997
November 3, 1997
Re: Request for Ruling: Retail Sales and Use Tax
Dear*************
This is in reply to your letter of July 24, 1997 in which you request an exemption from the Virginia retail sales and use tax for *****(the "Taxpayer”).
FACTS
The Taxpayer is a nonprofit organization of health care professionals who practice institutional epidemiology through education and research of issues relating to infection control and preventive health. The Taxpayer is the Virginia chapter of a national organization.
DETERMINATION
There is no general exemption from the retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Code of Virginia §§ 58.1-609.1 through 58.1-609.10 and § 58.1-609.13. The Virginia courts have consistently required strict construction of these exemptions, i.e., where there is any doubt as to the application of an exemption, the doubt is resolved against the one claiming the exemption.
Under current law, there are a number of medical related exemptions in Code of Virginia § 58.1-609.7, copy enclosed. Based on the information provided, the Taxpayer's activities do not fall within the scope of the existing exemptions. Therefore, the Taxpayer does not qualify for exemption from the Virginia sales tax under the doctrine of strict construction.
While I am mindful of the worthwhile purpose the Taxpayer serves, based on the information provided, it is clear that the Taxpayer does not satisfy the necessary criteria for exemption under Code of Virginia § 58.1-609.7. The Taxpayer is required to pay the tax on all purchases of tangible personal property. If a retailer is not registered to collect and remit the tax, the Taxpayer must remit the tax on the consumer use tax return, Form ST-7.
If you have additional questions regarding this matter, you may contact********* at*****.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12874J
Rulings of the Tax Commissioner