Tax Exempt Certificate Questions
For any non-profit organization to be exempt from paying sales tax on rentals they must provide Birdie's with a Retail Sales and Use Tax Certificate of Exemption. The organization that is on the Tax Exempt Certificate MUST be the same organization that is paying for the rental.
The Tax Exempt Certificate is issued by the State of Virginia Department of Taxation.. The Certificate is NOT issued by the IRS or the Virginia PTA. Only the State of
PTAs must have a Retail Sales and Use Tax Certificate of Exemption that is issued by the State of Virginia Department of Taxation. This Certificate will have an effective date, expiration date and exemption number on the upper right side. The PTA's name and address will be printed directly on the certificate. PTAs can NOT have a Certificate that is hand written. PTAs can NOT use the school's Tax Exempt Certificate because the PTA is NOT part of the school system, the PTA is a separate organization for tax purposes.
Schools (Not PTAs) and Government organizations can use Form ST-12 and hand write or type the information.
Churches must meet a few extra criteria before they can be exempt from paying sales tax. The criteria are listed on Form-13A...please pay special attention to section 1b. Section 1(b) states that the rental must be set up INSIDE the church building. Rentals that are set up outside are not sales tax exempt, meaning the church MUST pay the sales tax.