RESPONSIBILITY FOR THE COLLECTION, REPORTING, AND REMITTANCE OF VIRGINIA SALES TAX

• 1.0 Purpose
• 2.0 Policy
  • 2.1 Application of the Sales Tax to Goods Sold by the University
  • 2.2 Application of the State Sales Tax to Goods Purchased by the University
  • 2.3 Application of the Sales Tax to Services Acquired or Provided by the University
• 3.0 Definitions
• 4.0 References
• 5.0 Approvals and Revisions

1.0 Purpose

This policy describes the general guidelines for collecting Virginia sales tax.

2.0 Policy [Top]

2.1 Application of the Sales Tax to Goods Sold by the University

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."

The University with the following exceptions must collect sales tax on the sale of all tangible personal property:

• 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 fees.

2.2 Application of the State Sales Tax to Goods Purchased by the University

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

2.3 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 made.
• 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 property.

3.0 Definitions [Top]

4.0 References [Top]

5.0 Approvals and Revisions [Top]

       Previous version in effect from 6/1/86 to 1/25/00 available in policy archive.