Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-4020 - Schools and colleges, certain educational institutions and other institutions of learning

Current through Register Vol. 40, No. 24, July 15, 2024
A. When
				conducted not for profit.
1. Generally. The
				tax does not apply to sales of tangible personal property to nonprofit schools,
				colleges and other institutions of learning for their use or consumption and
				paid for out of their funds. An "other institution of learning" must be similar
				to a college, that is, it must (a) employ a professionally-trained faculty; (b)
				enroll and graduate students on the basis of academic achievement; (c)
				prescribe courses of study; and (d) provide instruction at regular intervals
				over a reasonable period of time. The tax does apply to purchases by day care
				centers and other pre-grade school establishments other than kindergartens.
Sales to institutions of learning owned and operated by the
				  state have the same status as other sales to the state for its use or
				  consumption. (See
				  23VAC10-210-690 through
				  23VAC10-210-694.)
2. Educational institutions.
				Tangible personal property and services may be purchased exempt from the tax by
				an educational institution doing business in the Commonwealth which (a) admits
				regularly enrolled high school and college students, and (b) provides a
				face-to-face educational experience in American government, a program which (i)
				leads toward the successful completion of courses in high school in United
				States history, civics, and problems of democracy, or (ii) which is acceptable
				for full credit towards an undergraduate or graduate level college degree,
				provided such institution is conducted not for profit. The property or services
				must be purchased by the educational institution. Individuals are not eligible
				for the exemption even if they are reimbursed by the institution for their
				expenditures. However, the exemption applies even if students, teachers or
				other educators participating in the institution's program use or consume the
				purchased property or services, including meals and lodging.
3. Public school system. The tax does not
				apply to purchases by public free schools for their use or consumption,
				provided purchases are made pursuant to official purchase orders to be paid for
				out of public funds. The tax applies to purchases not paid for out of public
				funds. (See
				23VAC10-210-690 through
				23VAC10-210-694.)
4. Sales. The exemption does not extend to
				sales by the institution (other than school textbooks). (See "School textbooks"
				below.) For example, the institution must collect the tax on retail sales of
				meals to students or others if the price of the meals is not included in room,
				board or tuition charges or fees. For school lunches, see "School lunches"
				below.
5. Independent associations.
				The tax does apply to sales to independent athletic and other such
				associations, whether or not affiliated with a nonprofit institution of
				learning (including state institutions). When these associations make retail
				sales, they should contact the Department to determine if they should register
				as a dealer.
6. School activity
				funds.
a. With respect to purchases of
				tangible personal property paid for out of funds other than public funds or
				funds of the nonprofit institution of learning, the tax applies if such
				tangible personal property is for the use of any school class, club, group,
				organization, association or individual. Such items cannot be purchased under
				certificates of exemption, and the tax must be paid to dealers. These items
				include yearbooks, class rings, graduation gowns and caps, photographs, school
				supplies, etc., for use by students. For school lunches, see the paragraph
				below on "School lunches."
b. The
				tax does not apply to purchases of tangible personal property by a school, such
				as athletic equipment, band instruments, etc., to be paid for out of school
				activity funds if the purchases become the property of the school. These items
				may be purchased under certificates of exemption.
7. School lunches. The tax does not apply to
				school lunches sold and served to pupils and employees of schools and
				subsidized by government at any level. The ingredients for providing the
				lunches can be purchased under certificates of exemption. Equipment and
				supplies purchased by a school for its use in preparing and serving school
				lunches, and which become the property of the school, can be purchased under
				certificates of exemption. This exemption also applies to government subsidized
				school lunches sold and served by non-public schools to their pupils and
				employees.
8. School textbooks. The
				tax does not apply to school textbooks sold by a local school board or its
				authorized agency. It also does not apply to school textbooks for use by
				students attending a college or other institution of learning not conducted for
				profit when sold (a) by such institution or (b) by any other dealer (provided
				such textbooks are certified by the institution as required course materials
				for its students).
9. Parent
				Teacher Associations and other groups. Parent Teacher Associations or other
				groups engaging in fund raising projects are the consumers of any tangible
				personal property they purchase for the projects. The tax must be paid by them
				to their suppliers.