West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-15A - Baby-Sitting Services Exemption › Section 110-15A-4 - Applicability of Consumers Sales Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. General Rule. -- The consumers sales and
				service tax is imposed upon the sale of tangible personal property or selected
				services. All sales are presumed to be taxable unless the sale is either
				excepted or exempt from the tax.
4.2 Baby-sitting Exemption. -- The sale of
				baby-sitting services by an individual who performs such services for profit
				are exempt from consumers sales tax when the individual providing the service
				reasonably estimates that his or her gross receipts from providing baby-sitting
				services will not exceed $5,000.00 during the individual's taxable year for
				federal income tax purposes.
4.2.1. If an
				individual reasonably estimates that his or her gross receipts from providing
				baby-sitting services will exceed $5,000.00 for the taxable year, then
				consumers sales tax must be collected on all charges for baby-sitting
				services.
4.2.2. If an individual
				reasonably estimates that his or her gross receipts from providing baby-sitting
				services during the taxable year will not exceed $5,000.00 but, due to a
				material and unforseen change in circumstances, actual gross receipts exceed
				$5,000.00, then consumers sales tax must be collected on gross receipts earned
				in excess of $5,000.00, or on gross receipts earned after the individual should
				have known that his or her gross receipts from providing baby-sitting services
				would exceed $5,000.00, whichever event occurs first.
4.2.3. An individual providing baby-sitting
				services for profit is engaging in "business" in this State as that term is
				defined in the consumers sales tax law, W. Va. Code '11-15-2, and in the
				business registration tax law, W. Va. Code '11-12-2. Such person
				must obtain a business registration certificate from the Tax Commissioner, as
				provided in W. Va. Code '11-12-3,
				if such person's gross receipts from all business activity conducted in this
				State exceed $4,000.00 for the taxable year. Application is made by filing Form
				WV 8.01 "Application For Business Registration" with the Tax Commissioner.
NOTE: An individual rendering baby-sitting services for
				  profit is not required to obtain a business registration certificate unless
				  such individual's gross receipts from all business activity will exceed
				  $4,000.00 for the taxable year. Gross receipts is calculated by excluding wages
				  and other employee compensation earned by the individual as an employee.
4.2.4. This exemption applies only
				to sales of baby-sitting services. It does not apply to sales of tangible
				personal property or other services by the baby-sitter.
4.2.5. Method of Claiming the Baby-Sitting
				Exemption. -- A baby-sitter is not required to obtain an exemption certificate
				or any other proof of exemption from the person for whom the service is
				provided.
4.2.6. Baby-Sitter
				Required to Keep Accurate Records. -- A baby-sitter who earns more than
				$4,000.00 during his or her taxable year from business activity (including
				baby-sitting for profit) must maintain adequate books and records to support
				his or her claim of exemption under W. Va. Code '11-15-9(pp)
				and these regulations.