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                      UNIVERSITY OF VIRGINIA

        VIRGINIA SALES TAX                                         
Note:  This policy is taken from:
       Virginia Retail Sales and Use Tax Regulations (1979), 
       1-45(a), 1-45(b), 1-96(a), 1-97.1 and 1-102.2.

       Code of Virginia 58-441.34A (Supp. 1983).

The department or activity head is responsible for the collection,
reporting, and remittance of sales tax when a sale or purchase in
his/her area is subject to the Virginia Sales Tax.

See also Procedure 5-10, "Completing Sales Tax Worksheet."


"University" -- The term "University" includes all departments and
activities normally considered a part of the institution, including
"University Affiliated Organizations."  It does not include
Foundations or other corporations affiliated with the University
nor those organizations that have been designated as "Agencies" or
"Student Organizations."

"Tangible Personal Property" -- "Tangible Personal Property" means
personal property that can be seen, weighed, measured, felt or
touched, or is in any other manner perceptible to the senses. 
Stocks, bonds, notes, insurance, and other obligations or
securities are intangible personal property and are not subject to
the tax.

Application of the State Sales Tax to Goods Purchased by the

The State sales tax DOES NOT apply when:

     The University purchases tangible personal property for the
     use and consumption of the University, and

     The purchase is paid with University funds, and

     The purchase is pursuant to required official purchase orders.

The State sales tax DOES apply to:

     Goods purchased for non-University use, whether or not
     University funds are used.

     Employee purchases of meals or lodging whether or not on
     official purchase orders.
     The purchase of tangible personal property to be sold through
     vending machines.

Application of the Sales Tax to Goods Sold by the University

Sales tax must be collected on the sale of all tangible personal
property by the University with the following exceptions:

     Textbooks sold to University students.

     Retail sales of meals to students or others, if the price of
     the meals is included in room, board, or tuition charges or

Application of the Sales Tax to Services Acquired or Provided by
the University

The sales tax DOES NOT apply when the University is the purchaser
of services.

     The sales tax does apply, if the services are purchased for
     non-University use, whether or not University funds are used.

The sales tax DOES NOT apply to the following transactions when the
University is the provider of services:

     Personal service transactions that involve sales as
     inconsequential elements for which no separate charge is made.

     Services rendered by repairmen for which a separate charge is

     The amount separately charged for labor or services rendered
     in installing, applying, remodeling, or repairing tangible
     personal property sold.

     Transportation charges separately stated.

The sales tax DOES apply to the following transactions when the
University is the provider of services:

     The charge for any services included in the sale of tangible
     personal property.

     The fabrication of tangible personal property for consumers 
     who furnish, either directly or indirectly, the materials used
     in fabrication.

     The furnishing, preparing, or serving for a fee of any
     tangible personal property consumed on the premises of the
     person furnishing, preparing, or serving such tangible

ISSUED BY:                                                 06/01/86
Accounting Operations, 
General Accounting