Current through Register Vol. XLI, No. 38, September 20, 2024
5.1. Any
person having a right or claim to the exemption set forth in this rule may
claim the exemption by:
5.1.1. First paying to
the vendor the tax imposed by this article and then applying to the Tax
Commissioner for a refund or credit; or
5.1.2. Providing to the vendor his or her
West Virginia direct pay permit number, as provided in § 11-15-9 d and
§ 11-15A-3 d of the W. Va. Code and W. Va. Code State R. §
110-15-9 c;
or
5.1.3. A person having a right
or claim to the exemption set forth in this rule may, in lieu of paying the
sales tax and filing a claim for refund, execute an exemption certificate, in
the form required by the Tax Commissioner, and deliver it to the vendor of the
property or service in the manner required by the Tax Commissioner. The Tax
Commissioner finds that the requirement that permission to execute such a
certificate be granted specifically upon application of the Tax Commissioner is
unnecessary, and so generally grants permission to execute such a certificate.
The form required to apply for an exemption certificate is available online at
https://tax.wv.gov.
5.2. Any person having a right or
claim to the exemption set forth in this rule may apply for a refund or credit
by timely filing a claim for refund or credit of the consumers sales and
service tax or the use tax overpayments on such form and in such manner as the
Tax Commissioner may require and in accordance with the requirements of §
11-10-1,
et seq. and § 11-15-1, et seq. of the
W.Va. Code and W. Va. Code State R. §
110-15-1, et
seq., and W. Va. Code State R. §
110-10L-1, et
seq. The form required to claim a refund or credit is available online
at https://tax.wv.gov.
5.3. Any person having a right or claim to
the exemption set forth in this rule may use an exemption certificate as
follows:
5.3.1. To purchase tangible personal
property or services using an exemption certificate, a person must:
5.3.1.a. Apply for and obtain a valid West
Virginia Business Registration Certificate. The form required to apply for a
West Virginia Business Registration Certificate is available at
https://tax.wv.gov; and
5.3.1.b. Properly complete an exemption
certificate, in the form required by the Tax Commissioner, and present it to
the vendor or retailer.
5.3.2. An exemption may be rendered void and
invalid due to fraud, error, deficient or incomplete records or documentation,
failure to retain records, or acceptance or use of an exemption certificate in
bad faith.
5.3.2.a. If the Tax Commissioner
believes that the exemption certificate was incomplete, deficient, or otherwise
erroneous, or that the taxpayer was not entitled to claim the exemption for any
reason, the Tax Commissioner may proceed to investigate and determine or
estimate the tax liability and make an assessment therefor as permitted under
W. Va. Code §
11-10-1,
et seq.
5.3.2.b.
In order that the Tax Department may verify the taxable and nontaxable sales
upon audit, a taxpayer claiming an exemption under this rule must retain the
appropriate books and records supporting its claim for exemption for at least
three (3) years, or for so long as the taxable period remains open for
assessment or refund, whichever is greater.
5.3.3. In order that the Tax Department may
verify a vendor's or a retailer's taxable and nontaxable sales upon audit, it
is necessary that such persons retain executed exemption certificates and other
appropriate books and records for at least three (3) years or for so long as
the taxable period remains open for assessment or refund, whichever is greater.
An exemption certificate, to be valid, must be given by the vendee and accepted
by the vendor at the time of the sale and not thereafter. If a vendor lists
nontaxable sales or services for which the vendor has no exemption certificate,
the Tax Department will presume such sales were taxable and assess the tax
against the vendor.
