Tax Type
Retail Sales and Use Tax
Description
Exemptions
Topic
Taxability of Persons and Transactions
Date Issued
07-28-1998
July 28, 1998
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter in which you seek a ruling on the application of the sales and use tax to products sold by ***** (the ``Taxpayer').
FACTS
The Taxpayer is a wholesaler of health and nutritional products sold through a network of distributors in Virginia, the United States, and worldwide. The Taxpayer provides a listing of products and questions the taxable status of the products under Virginia sales and use tax law.
RULING
Medicines and Drugs Exemption
The products submitted for review consist of drink mixes, teas, tablets, and fiber products. These fall into the category of dietary and nutritional supplements. In Public Document (P.D.) 96-64 (4/24/96), the department addressed the application of the tax to nutritional supplements sold by a network of independent distributors and determined that such products do not constitute controlled drugs as described in Schedules I through VI of the Virginia Drug Control Act (Chapter 34 of the Code of Virginia Sec. 54.1). In addition, Virginia does not exempt food items from the retail sales and use tax. The nutritional supplements were held taxable.
Nonprescription Drug Exemption
Effective July 1, 1998, Code of Virginia Sec. 58.1-609.7(15) provides an exemption from the sales and use tax for nonprescription drugs and proprietary medicines. Nonprescription drugs are those substances containing medicines or drugs for which no prescription is required and which are generally sold for internal or topical use in the cure, mitigation, treatment, or prevention of disease in human beings. Proprietary medicines are nonprescription drugs sold to the general public under the brand name or trade name of the manufacturer and which do not contain any controlled substance or marijuana.
The department issued Tax Bulletin 98-4 on May 15, 1998 which addresses the application of the exemption. The Tax Bulletin provides that the exemption does not apply to dietary foods, supplements and substitutes, herbal teas, drinks, pills, or powder supplements.
Based on the above, the sale of the Taxpayer's products is subject to the Virginia retail sales and use tax. I have enclosed copies of P.D. 96-64, with attachments, and Tax Bulletin 9-84. If you have additional questions, you may contact ***** at *****.
Sincerely,
Re: Request for Ruling: Retail Sales and Use Tax
Dear *****
This is in reply to your letter in which you seek a ruling on the application of the sales and use tax to products sold by ***** (the ``Taxpayer').
FACTS
The Taxpayer is a wholesaler of health and nutritional products sold through a network of distributors in Virginia, the United States, and worldwide. The Taxpayer provides a listing of products and questions the taxable status of the products under Virginia sales and use tax law.
RULING
Medicines and Drugs Exemption
The products submitted for review consist of drink mixes, teas, tablets, and fiber products. These fall into the category of dietary and nutritional supplements. In Public Document (P.D.) 96-64 (4/24/96), the department addressed the application of the tax to nutritional supplements sold by a network of independent distributors and determined that such products do not constitute controlled drugs as described in Schedules I through VI of the Virginia Drug Control Act (Chapter 34 of the Code of Virginia Sec. 54.1). In addition, Virginia does not exempt food items from the retail sales and use tax. The nutritional supplements were held taxable.
Nonprescription Drug Exemption
Effective July 1, 1998, Code of Virginia Sec. 58.1-609.7(15) provides an exemption from the sales and use tax for nonprescription drugs and proprietary medicines. Nonprescription drugs are those substances containing medicines or drugs for which no prescription is required and which are generally sold for internal or topical use in the cure, mitigation, treatment, or prevention of disease in human beings. Proprietary medicines are nonprescription drugs sold to the general public under the brand name or trade name of the manufacturer and which do not contain any controlled substance or marijuana.
The department issued Tax Bulletin 98-4 on May 15, 1998 which addresses the application of the exemption. The Tax Bulletin provides that the exemption does not apply to dietary foods, supplements and substitutes, herbal teas, drinks, pills, or powder supplements.
Based on the above, the sale of the Taxpayer's products is subject to the Virginia retail sales and use tax. I have enclosed copies of P.D. 96-64, with attachments, and Tax Bulletin 9-84. If you have additional questions, you may contact ***** at *****.
Sincerely,
Rulings of the Tax Commissioner