Tax Type
Retail Sales and Use Tax
Description
List of Exemptions, Exceptions and Exclusions
Topic
Exemptions
Date Issued
06-29-1999
June 29, 1999
Re: Request for Ruling: Retail Sales and Use Tax
Dear***
This is in reply to your letters in which you request an exemption from the retail sales and use tax for the ***** (Taxpayer A), and the ***** (Taxpayer B).
FACTS
Taxpayer A is a nonprofit organization that studies and disseminates information to advance the knowledge, practice and understanding of women's health care. The Taxpayer also identifies and studies women's health care issues as they interact with medical and social systems; creates an informed dialogue on women's health fostering an awareness among consumers and providers; and promotes problem resolution, with the dissemination of information at regional, national and international levels.
Taxpayer B is organized to consider problems relating to departments of gynecology and obstetrics in Schools of Medicine; to advance and improve the study of gynecology and obstetrics; and to provide a means of exchanging information relating to programs of study, teaching methods and research activities of such departments.
Taxpayer A and Taxpayer B seek an exemption from the retail sales and use tax under the educational ( Sec. 58.1-609.4) or medical-related ( Sec. 58.1-609.7) exemption groupings.
RULING
There are no general exemptions, however, from the retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Code of Virginia Secs.58.1-609.1 through 58.1-609.10.
I have reviewed the Articles of Incorporation in light of the existing statutory exemptions. It does not appear that either Taxpayer A or Taxpayer B qualifies for an exemption from the sales and use tax. Lacking specific statutory exemptions that would allow Taxpayer A or Taxpayer B to make purchases exempt of the tax, the department has no authority to grant such exemptions. Therefore, Taxpayer A and Taxpayer B are required to pay sales tax on all purchases of tangible personal property from vendors who are registered to collect the tax. If the Taxpayers make purchases from vendors who are not registered to collect the Virginia sales tax, the Taxpayers must report and pay the tax on such purchases using Consumer Use Tax Returns, Form ST-7.
I have also enclosed some prior determinations which address the application of the tax to purchases by nonprofit organizations seeking exemption under the institution of learning exemption.
I regret that I cannot provide you with a more favorable response. If you should have any additional questions, please contact ***** of the department's Office of Tax Policy, at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/22741Q
Re: Request for Ruling: Retail Sales and Use Tax
Dear***
This is in reply to your letters in which you request an exemption from the retail sales and use tax for the ***** (Taxpayer A), and the ***** (Taxpayer B).
FACTS
Taxpayer A is a nonprofit organization that studies and disseminates information to advance the knowledge, practice and understanding of women's health care. The Taxpayer also identifies and studies women's health care issues as they interact with medical and social systems; creates an informed dialogue on women's health fostering an awareness among consumers and providers; and promotes problem resolution, with the dissemination of information at regional, national and international levels.
Taxpayer B is organized to consider problems relating to departments of gynecology and obstetrics in Schools of Medicine; to advance and improve the study of gynecology and obstetrics; and to provide a means of exchanging information relating to programs of study, teaching methods and research activities of such departments.
Taxpayer A and Taxpayer B seek an exemption from the retail sales and use tax under the educational ( Sec. 58.1-609.4) or medical-related ( Sec. 58.1-609.7) exemption groupings.
RULING
There are no general exemptions, however, from the retail sales and use tax for nonprofit organizations. The only exemptions from the tax are set out in Code of Virginia Secs.58.1-609.1 through 58.1-609.10.
I have reviewed the Articles of Incorporation in light of the existing statutory exemptions. It does not appear that either Taxpayer A or Taxpayer B qualifies for an exemption from the sales and use tax. Lacking specific statutory exemptions that would allow Taxpayer A or Taxpayer B to make purchases exempt of the tax, the department has no authority to grant such exemptions. Therefore, Taxpayer A and Taxpayer B are required to pay sales tax on all purchases of tangible personal property from vendors who are registered to collect the tax. If the Taxpayers make purchases from vendors who are not registered to collect the Virginia sales tax, the Taxpayers must report and pay the tax on such purchases using Consumer Use Tax Returns, Form ST-7.
I have also enclosed some prior determinations which address the application of the tax to purchases by nonprofit organizations seeking exemption under the institution of learning exemption.
I regret that I cannot provide you with a more favorable response. If you should have any additional questions, please contact ***** of the department's Office of Tax Policy, at *****
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/22741Q
Rulings of the Tax Commissioner