Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-690 - Governments; sales to

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. Sales to the United States, or to the Commonwealth of Virginia or
				its political subdivisions, are exempt from the tax if the purchases are
				pursuant to required official purchase orders to be paid out of public funds.
				Sales made without the required purchase orders and not paid for out of public
				funds are taxable. Sales to governmental employees for their own consumption or
				use in carrying out official government business are taxable.
B. Meals, lodging and other accommodations.
				Charges for meals, catered events, lodging, and other accommodations, such as
				meeting or conference rooms, are subject to the tax when paid for by the state
				or local government or public institutions of learning, or employees of such,
				regardless of whether the purchases are made pursuant to required official
				purchase orders. Room setup charges in connection with the rental of rooms or
				conference rooms are also taxable. Setup charges not in connection with room
				rentals are not subject to the tax.
Purchases of meals, lodging, and other accommodations, by
				  the federal government or its employees traveling on government business are
				  exempt from the tax provided payment for the meals, lodging, or other
				  accommodations is made directly by the federal government pursuant to an
				  official purchase order (e.g., by direct billing to government or use of
				  government credit card). Only credit card purchases for which the credit of the
				  federal government is bound and billings are sent directly to and paid by the
				  government, are exempt from the tax. For example, I.M.P.A.C. cards which have
				  been identified as a United States government credit card and which can be used
				  only for making purchases for official government purposes may be used to make
				  exempt purchases, provided the credit card bill will be paid directly by the
				  federal government.
If an employee pays for meals and lodgings with personal
				  funds, a personal credit card or a credit card provided by the government, the
				  bill for which is sent directly to the employee, and will be reimbursed by the
				  government or utilizes a travel advance, no exemption is available even though
				  the employee may be traveling pursuant to official government orders or the
				  credit card used has the governmental agency's name embossed thereon.
C. Federal credit unions. Sales to
				federally chartered credit unions are exempt from the tax (
				12 USC
				1768 ).
D. Privately owned financial and other
				similar corporations chartered by the United States. Privately owned financial
				and similar corporations chartered by the United States, such as commercial
				banks and federal savings banks, are not instrumentalities of the United States
				and do not qualify for an exemption. Thus, sales and leases to these
				corporations are subject to the tax.
Statutory Authority
§§ 58.1-203 and 58.1-609.1(4) of the Code of
					 Virginia.