Virginia Tax Commissioner Determines Sales Tax Correctly Imposed on Saw Blade Sharpening Service’s Purchases

The Virginia Tax Commissioner May 11 determined in a letter ruling that the Department of Taxation correctly imposed sales and use tax on Taxpayer’s purchases of metal alloy and plastic for its saw blade sharpening services. Taxpayer was audited by the department, resulting in an assessment of the tax on Taxpayer’s purchases. Taxpayer asserted that the materials weren’t taxable supplies used in the business. The commissioner noted: 1) Taxpayer’s transactions more closely approximated business activities of a general service provider and use of the metal alloy and plastic were a part of its service; 2) Taxpayer was considered the ultimate …