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Any computer software training services which are included in the sale of software are subject to Virginia sales tax. The reason for the taxability is because the service is bundled with the sale of tangible personal property, thus making everything included with the sale taxable. (Ruling of Commissioner, Virginia Department of Taxation, P.D. 03-31,April 9, 2003)


A management contract requiring fees to be paid between a professional corporation of physicians and a partnership that handled all of the administrative operations of the clinic were not subject to Virginia sales and use tax even though some tangible personal property was provided by the management company. It was determined that the true essence of the management contract was to gain the expertise of the management partnership as well as nontaxable professional services. (Ruling of Commissioner, Virginia Department of Taxation, P.D. 02-129, October 6, 2002)


Manufacturing and launching services are only exempt in Virginia if NASA's facility is owned, leased, or operated by on behalf of the Virginia Commercial Space Flight Authority (VCSFA). Since NASA's facility did not heed the rule of the VCSFA's involvement, the manufacturing and services were not included in the state's manufacturing exemption. (Ruling of Commissioner, Virginia Department of Taxation, P.D. 02-114, August 14, 2002)


Web site consultation, design, development and registration are all non taxable in the state of Virginia. A sale of a website is considered taxable only if tangible personal property has been exchanged. If the sale is made electronically no tax should be assessed. If separately stated, labor and/or modification services are exempt as well. (Ruling of Commissioner, Virginia Department of Taxation, P.D. 02-94)


An advertising agency in the state of Virginia recently requested a letter ruling regarding an assessment made by a Department of Taxation audit. Tax was assessed on items originally purchased without tax and then used by the advertising agency to create a web site advertising its client's services and pricing. Once complete, the design graphics for the web site were delivered to the client on a disk. The Code of Virginia provides an exemption for advertising and states that anyone providing advertising is considered the user of any tangible personal property purchased for the use in the advertisement. (Ruling of the Tax Commissioner, 02-42, April 5, 2002)



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