Virginia Tax Commissioner Determines Transactions Properly Included in Sales and Use Tax Audit

The Virginia Tax Commissioner March 15 determined in a letter ruling which transactions were properly included in a retail sales and use tax assessment issued against Taxpayer, a manufacturer and distributor of automotive lifts. The Department of Taxation issued the assessment, uncovering untaxed transactions with three customers for which Taxpayer couldn’t produce appropriate exemption certificates. Taxpayer provided exemption certificates after the conclusion of the department’s audit. Exemption certificates for customers 1 and 2 had their parent company’s name on them. The commissioner noted: 1) customers 1 and 2 were eligible to make tax-exempt purchases from Taxpayer because the parent company ...