58.1-657 - Sales presumed subject to tax; exemption certificates; Internet access service providers.
§ 58.1-657. Sales presumed subject to tax; exemption certificates; Internetaccess service providers.
A. All sales are subject to the tax until the contrary is established. Theburden of proving that a sale of communications services is not taxable isupon the communications services provider unless he takes from the taxpayer acertificate to the effect that the service is exempt under this chapter.
B. The exemption certificate mentioned in this section shall relieve theperson who obtains such a certificate from any liability for the payment orcollection of the tax, except upon notice from the Tax Commissioner that thecertificate is no longer acceptable. The exemption certificate shall besigned, manually or electronically, by and bear the name and address of thetaxpayer; shall indicate the number of the certificate of registration, ifany, issued to the taxpayer; shall indicate the general character of thecommunications services sold or to be sold under a blanket exemptioncertificate; and shall be substantially in the form as the Tax Commissionermay prescribe.
C. In the case of a provider of Internet access service that purchases atelecommunications service to provide Internet access, the Internet accessprovider shall give the communications service provider a certificate of usecontaining its name, address and signature, manually or electronically, of anofficer of the Internet access service provider. The certificate of use shallstate that the purchase of telecommunications service is being made in itscapacity as a provider of Internet access in order to provide such access.Upon receipt of the certificate of use, the communications service providershall be relieved of any liability for the communications sales and use taxrelated to the sale of telecommunications service to the Internet accessservice provider named in the certificate. In the event the provider ofInternet access uses the telecommunications service for any taxable purpose,that provider shall be liable for and pay the communications sales and usetax directly to the Commonwealth in accordance with § 58.1-658.
D. If a taxpayer who holds a certificate under this section and makes any useof the service other than an exempt use or retention, demonstration, ordisplay while holding the communications service for resale in the regularcourse of business, such use shall be deemed a taxable sale by the taxpayeras of the time the service is first used by him, and the cost of the propertyto him shall be deemed the sales price of such retail sale.
(2006, c. 780.)