West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-15 - Consumer Sales And Service Tax And Use Tax › Section 110-15-6 - Taking Exemption Certificate, Material Purchase Certificate Number or Direct Pay Permit Number

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1.
				Vendor Must Show Sale or Service Exempt; Presumption. - In the case of sales
				subject to Section 8a or 9.3.4.4 of these regulations or Section 9.3 of these
				regulations, the burden of proving that a sale or service was exempt from the
				tax shall be upon the vendor, unless he in good faith takes from the purchaser
				his direct pay permit number, a properly completed material purchase
				certificate number or a properly completed exemption certificate signed by and
				bearing the address of the purchaser and setting forth the reason for the
				exemption: Provided, That effective July 1, 1990, a contractor or subcontractor
				may only claim the exemption authorized by Section 9.3.4.4 of these regulations
				by issuing his material purchase certificate number to his vendor. In order to
				assure maintenance of appropriate records, the vendor should take during his
				taxable year one completed exemption certificate from each of his purchasers
				who are authorized to issue an exemption certificate for exempt purchases.
				However, for purposes of the contracting exemption provided under Section
				9.3.4.4.a of these regulations, the vendor should take one completed material
				purchase certificate number for each exempt contracting project or direct pay
				permit number. The completed exemption certificate, material purchase
				certificate number or direct pay permit number may be used for the exempt
				purchases by the respective purchaser. Except as otherwise provided in this
				Section or Section 9.3.4.4 of these regulations, the direct pay permit, or the
				material purchase certificate issued by the Tax Commissioner for the specific
				contracting activity, may be used for exempt purchases of tangible personal
				property to be incorporated in the exempt contracting activity. If a contractor
				decides to use a material purchase certificate when claiming an exemption, he
				must obtain the application from the entity which awarded the contract. As of
				October 1, 1990, the contracting exemption provided in Section 9.3.4.4.a was
				generally repealed and use of the material purchase certificates became very
				limited. The material purchase certificate may only be used in the manner
				specified in Section 9.3.4.4.a and Section 109 of these regulations. See
				Section 109 of these regulations for additional information on the taxation of
				materials for use in governmental contracts. To prevent evasion of the
				consumers sales and service tax, it shall be presumed that all sales and
				services are subject to tax until the contrary is clearly established.
6.1.1. Liability of Purchaser for Failure to
				Pay the Sales or Use Tax or Provide Appropriate Indicia of Tax Exemption. -
				Except for sales exempt per se under Section 9.2 of these regulations, if any
				purchaser unlawfully refuses to pay to the vendor the consumers sales and
				service tax or, where appropriate, the use tax, or in the case of a sale
				subject to Section 9.3 of these regulations a purchaser unlawfully refuses to
				sign and present to the vendor a proper exemption certificate or a lawful
				material purchase certificate number indicating that the sale is not subject to
				either the consumers sales and service tax or the use tax, or presents to the
				vendor a false exemption certificate or a false, cancelled, expired or
				otherwise ineffective or unlawful material purchase certificate number, or,
				after presenting an exemption certificate or material purchase certificate
				number, uses the property or services purchased in such manner that would cause
				the sale to be subject to the sales or use tax, or presents a direct pay permit
				number which is false, cancelled, expired or otherwise ineffective or unlawful
				or uses such direct pay permit in a manner not authorized by the Tax
				Commissioner, such purchaser shall be personally liable for the amount of tax
				applicable to the transaction or transactions.
6.1.1.1. In such case, the Tax Commissioner
				has authority to make an assessment against such purchaser, based upon any
				information within his possession or that may come into this possession. The
				assessment and notice thereof shall be made and given in accordance with W. Va.
				Code '11-10-1 et
				seq.
6.1.1.2. Sections 6.1.1 and
				6.1.1.1 of these regulations shall not be construed as relieving the vendor
				from liability for the tax; Provided, That the vendor shall be relieved from
				liability for the purchaser's refusal to pay the tax or provide appropriate
				indicia of tax exemption if the vendor notifies the Tax Commissioner in writing
				of such refusal; and the vendor shall be relieved from liability for the
				purchaser's presentation of false, expired, cancelled, or otherwise ineffective
				or unlawful indicia of tax exemption unless the vendor has accepted such
				indicia in bad faith, or accepted such indicia in complicity with the purchaser
				or others for the purpose of allowing the purchaser, the vendor or others to
				unlawfully evade the payment of tax or has otherwise conspired or contrived to
				cause or assist in unlawful tax evasion. The information provided to the Tax
				Commissioner must include the name and, if known, address of the purchaser, the
				date of the purchase and the description of the item or service purchased, the
				purchase price thereof, and the amount of tax not collected.