Bulletin Number
VTB 85-6
Tax Type
Retail Sales and Use Tax
Description
Foreign Diplomats; Application of Sales Tax
Topic
Exemptions
Date Issued
02-14-1985
Virginia Department of Taxation
85-6
DATE: February 14, 1985
SUBJECT: Application of the Sales Tax to Purchases by Foreign Diplomats
Effective February 15, 1985, the sales tax exemption cards presently held by foreign diplomats will be replaced by new cards issued by the U.S. State Department. Such new cards will be the only valid exemption cards for use by diplomats on and after February 15, 1985.
Presently all foreign diplomats may obtain exemption cards; however, with the issuance of new cards, some diplomats will be entitled to only a partial sales tax exemption and some will be entitled to no exemption whatsoever. The new cards are divided into three classes, each of which has its own color code. The three classes of cards are described below:
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- *cards with a blue strip entitle the holder to a complete sales tax exemption, including sales tax on rentals of hotel and motel rooms.
*cards with a green strip entitle the holder to a sales tax exemption on all tangible personal property purchased, but does not entitle the holder to an exemption on rentals of hotel and motel rooms.
*cards with a red strip entitle the holder to an exemption only if purchases exceed a certain dollar amount. Depending on the type of red card held, an exemption will be available only when the receipt total at the register is above $50, $150, or $200. When a purchase does not exceed the figure listed on the red card, sales tax will be due on the purchase price.
- *cards with a blue strip entitle the holder to a complete sales tax exemption, including sales tax on rentals of hotel and motel rooms.
Each diplomatic exemption card will contain a tax exemption number, the first two letters of which will denote the diplomat's home nation. The entire tax exemption number, including the two letter country code, must be recorded by any person making an exempt sale or rental and retained with records of other exempt sales or rentals.
A poster prepared by the U.S. State Department which illustrates the new diplomatic exemption cards is enclosed with this bulletin.
Tax Bulletins