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TSD 300 | Sales and Use Tax Exemptions
Rev. September 2024 | West Virginia Tax Division
TSD 300
Sales and Use Tax Exemptions
General Principals
All sales of tangible personal property or taxable services are presumed to be subject to tax. Tax must be collected unless a
specic exemption applies to the transaction and proper documentation of the exempt status of the transaction is established
by the purchaser and retained by the seller. Most individuals, businesses and organizations must pay tax on their purchases.
The burden of proving that a transaction is exempt is on the person claiming the exemption and the vendor making the sale.
Vendors who fail to collect and remit sales tax on taxable transactions or who fail to maintain proper records and documents
with respect to taxable transactions are personally liable for payment of the amount of tax. Intentionally disregarding sales/
use tax law or regulations is a serious matter and will result in monetary nes or criminal penalties.
There are several distinct types of exemptions that require certain methods in order to claim them.
Failure to follow the proper method in claiming an exemption may result in a transaction being taxable.
“Per Se” Exemptions
The term “per se” means “by, of, or in itself”. When used in the context of sales tax exemptions, it means some exemptions
do not require a separate document as proof of the exempt status. Generally, the normal documentation of the transaction is
sufcient proof of the “per se” exemption. Vendors who make sales that are “per se” exempt must maintain adequate
records to substantiate the exemption.
The following sales and services are exempt “per se” from sales and use tax in West Virginia:
Advertising - Sales of radio or television broadcasting time, preprinted advertising circulars and outdoor advertising space,
newspaper and magazine advertising space for the advertisement of goods or services.
College Board - Sales of board or meal plans by public or private colleges or universities when the sale is for more than 30
consecutive days and is on a “contract basis” to students enrolled at the school.
Contracting - The construction, alteration, repair, improvement or decoration of real property, but only when the work
performed results in a “capital improvement” to the real property. All other construction trade activities are subject to the
sales tax unless otherwise exempt. Purchases made by contractors are generally taxable. For more information on capital
improvements, see Publication TSD-310.
Day Care Centers - Sales of day care center services. A day care center’s own purchases of property or services are
generally taxable. This includes church day care centers that are stand alone businesses.
Drugs, durable medical goods, mobility enhancing equipment and prosthetic devices dispensed upon prescription - Through
June 30, 2016, the exemption for durable medical equipment could be asserted by health care providers and individuals who
purchased durable medical equipment to be dispensed upon prescription and intended for use in the diagnosis, cure,
mitigation, treatment or prevention of injury or disease when the durable medical equipment was used. Between July 1, 2016
and June 30, 2018, this exemption was available only to individuals. After July 1, 2018, this exemption was again made
available to both home users and health care providers. For more information on this exemption, see Publication TSD-425.
Educational Summer Camp Tuition - Tuition charges made for attending educational summer camps. This exemption does
not apply to sales of tangible personal property or food by the camps. For more information on educational camps, see
Publication 312.
Employee Services - Services by an employee to the employer that are within the scope of the employment contract.
Certain Exempt Organizations - Federal and State law exempt certain organizations or activities from sales taxes. These
provisions are not found in our sales tax law or legislative rule, but are in the particular provisions of the law that deal with the
specic organization or activity. A nonexclusive list of organizations that are exempt from sales tax by other sections of
federal or state law includes: federal or state chartered credit unions, regional transit authorities, county ambulance
authorities, and non-prot public health care corporations. These provisions of federal and state law may exempt the
organization or activity from sales tax on the sale of goods and services, or on purchases of goods and services, or both.
However, this exemption applies only to the activities or transactions specically excluded from taxation by the applicable
statute. For example, state law imposes a pari-mutuel wagering tax on racing tracks in lieu of other taxes on its operations;
nevertheless, sales of food, beverages, programs, souvenirs and other items by racing tracks are subject to the sales tax. For
more information on sales and use tax for nonprot organizations, see Publication TSD-320.
Services provided by an employee to the employer that are outside of the employment contract
and services provided by an “independent contractor” are taxable.
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TSD 300 | Sales and Use Tax Exemptions
Rev. September 2024 | West Virginia Tax Division
Food Stamp Purchases - Sales of food lawfully purchased with federal food stamps or with drafts issued by the West Virginia
special supplemental food program for Women, Infants, and Children (WIC).
Fraternities and Sororities - Charges made by fraternities and sororities to their student members for board or meal plans.
Fund Raising Sales by Churches and Certain Non-Prot Organizations - This exemption applies only to organizations that
meet special requirements. For a more complete discussion of this exemption, see Publication TSD-320.
Intangible Property - Sales of intangibles (copyrights, royalties, notes, bonds, etc.).
Isolated Transactions - Sales of tangible personal property or taxable services by persons who are not in the business of
making such sales, such as an individual selling his personal belongings or a law ofce selling its used furniture. Sales of
tangible personal property may be made at yard sales without collecting sales tax provided such sales are held no more than
four times per year and last no longer than 48 hours each. Persons who regularly and routinely sell goods at yard sales, flea
markets or along the roadside are engaged in the business of selling. They must register with the Tax Division and collect
sales tax on such sales. Persons who are not engaged in the business of providing taxable services and therefore not
required to register may also qualify for this exemption. For example, teenagers who occasionally mow lawns, babysit or do
odd jobs for their neighbors may be able to claim this exemption. For more information on business registration requirements,
see Publication TSD-360.
Lottery Tickets - Sales of WV lottery tickets and materials related directly to the lottery by authorized lottery retailers.
Newspapers - Sales of newspapers delivered by route carriers are exempt from sales tax. Over the-counter and vending
machine sales are taxable.
Personal Services - Sales of services to the “person” of an individual, such as barbering, hairstyling, manicuring and
massaging. Purchases of tangible personal property or taxable services made by personal service providers are generally
taxable. Generally, this exemption does not apply to weight loss or physical tness programs. However, personalized tness
programs or services are exempt.
Prescriptions - Sales and purchases of drugs, durable medical goods, mobility-enhancing equipment and prosthetic devices
dispensed upon prescriptions issued by persons licensed to prescribe and intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of injury or disease. Sales of insulin to consumers for medical purposes are also exempt from sales
tax. Sales of nonprescription medications are subject to the tax. For a more complete discussion of the application of sales
and use tax to drugs, durable medical goods, mobility-enhancing equipment and prosthetic devices dispensed upon
prescription, and insulin, see Publication TSD-425.
Professional Services and Certied Public Accountants - Sales of services recognized as “professional” under West Virginia
law, such as those provided by doctors, lawyers, engineers, architects and CPA’s. Purchases by professionals for use in
providing professional services are taxable.
Public Services - Sales of services subject to the control of the West Virginia Public Service Commission, including sales of
gas, steam and water delivered through pipes and mains, sales of electricity, most telephone services and services of regu-
lated public or common carriers, bus and taxi services. Mobile telephone and paging services that may not be
regulated are subject to the tax. Sales of goods by regulated companies are generally not exempt.
Purchase By A Commercial Agricultural Producer - Purchases of tangible personal property or taxable services for use or
consumption in the commercial production of an agricultural product and purchases of propane for use in heating poultry
houses, but not purchases for construction of or permanent improvement of real property. For more information, see
Publication TSD-371.
Real Property - The sale, lease or rental of real estate (land, houses, buildings and other structures attached to the land) to
the same person or occupant for thirty or more consecutive days. Rentals of real property for less than thirty days, such as
daily parking or certain ATV lodging rentals, are subject to the sales tax. For more information on short-term leases and
rentals of real property, see Publication TSD-435.
School Activities - Sales of tickets for activities sponsored by elementary and secondary schools located within this State.
This exemption does not include activities sponsored by other organizations which merely occur on school property and are
not sponsored by the school. For more information on exempt school activities, see Publication TSD-312.
Textbooks - Sales of textbooks required to be used in any of the schools of the State, whether the books are sold directly to
schools or students. This exemption includes written course materials as well as audio and video materials so long as they
are a required text of the school. This exemption does not apply to books or materials that are not textbooks, pens, pencils,
paper or other school supplies. For more information, see Publication TSD-312 .
Transportation - Charges for transporting passengers in interstate commerce, such as airplane tickets or bus tickets, when
the trip begins or ends outside the State.
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TSD 300 | Sales and Use Tax Exemptions
Rev. September 2024 | West Virginia Tax Division
Refundable Exemptions / Direct Pay Permit Exemptions
Some exemptions may not be claimed using a tax exemption certicate. They must be claimed in one of the following ways:
• Pay/Refund - Business entities that qualify for certain exemptions but have not been issued direct pay permits must pay
the sales tax to the vendor at the time of purchase and then apply to the Tax Division using CST-240 for a refund or credit
of the tax paid on their exempt purchases.
• Direct Pay Permit - Issuance of a direct pay permit is a method of claiming certain exemptions that absolves the vendor or
retailer from responsibility to collect and remit consumers sales and service tax and use tax. After an approved CST-250
application, the holder of the direct pay permit must report the taxes to the Tax Division. Business entities that qualify for
these exemptions may apply to the Tax Division for a direct pay permit. Only those organizations that qualify for one or
more of these exemptions will be issued a direct pay permit. Also, business entities that are delinquent in paying taxes to
the Tax Division will not be issued direct pay permits. Direct pay permits may only be used to purchase exempt items and
may not be used to purchase gasoline and special fuel.
The following sales of tangible personal property and taxable services are exempt from tax, but only if the purchaser
presents, and the vendor accepts, a properly executed exemption certicate or material purchase certicate, or the
purchaser presents the direct pay permit number issued by the Tax Commissioner:
Aircraft - Purchases by a licensed carrier of persons or property, or by a government entity, or aircraft repair, remodeling and
maintenance services for an aircraft, engine or other component part of an aircraft, or purchases of tangible personal property
that is permanently afxed as a component part of an aircraft as part of the repair, remodeling or maintenance of aircraft,
aircraft engines or aircraft component parts, and purchases by a licensed carrier of persons or property, or by a government
entity, of machinery, tools or equipment, directly used or consumed exclusively in the repair, remodeling or maintenance of
aircraft, aircraft engines or aircraft component parts.
Businesses Subject to the Business and Occupation Tax and Severance Tax or - All equipment, supplies and materials that
will be used in the business activities subject to the business and occupation tax, severance tax and telecommunication tax
are exempt from the sales tax. Purchases made for use in activities not subject to those taxes do not qualify for this
exemption.
Communication Businesses - Purchases made for direct use or consumption in the activity of communication (telephone,
telegraph, commercial broadcast radio and television, cable television, etc.). Purchases that are not for direct use or
consumption or whose use or consumption will only be incidental or convenient to the communications activity are taxable.
Manufacturing Exemptions - Purchases of equipment, supplies, materials and services intended for direct use or consumption
in the activity of manufacturing. Purchases that are not intended for direct use or consumption but whose use or consumption
is only incidental or convenient to the manufacturing activity are not exempt. For more information on the integrated
manufacturer/contractor rule, see Publication 310.
For example, the purchase of an oven to process coal into coke and the purchase of coal to be processed into coke are
exempt, whereas a furnace purchased to heat the ofce building of a coke manufacturer and the coal used to re that furnace
are subject to sales tax. For a more complete discussion of the denition of “direct use”, see Publication TSD-358.
Natural Resource Production - Purchases for direct use or consumption in the activity of producing natural resources.
Purchases that are not for direct use or consumption or whose use or consumption will only be incidental or convenient to the
natural resource production activity are taxable.
Other Organizations - Charitable organizations, volunteer re departments and nationally chartered fraternal or social
organizations may qualify for a refundable/direct pay permit exemption. If these organizations do not qualify for the specic
exemption for non-prot (IRC §501(c)(3) or § 501(c)(4)) organizations, they may claim a limited refundable exemption.
However, if these organizations qualify for the non-prot exemption, they must claim their exemption by use of the tax
exemption certicate and are not eligible to receive a direct pay permit.
Purchases by bona de charitable organizations that make no charge whatsoever for the services they render.
Purchases by volunteer re departments of station house equipment, construction and automotive equipment.
Purchases by nationally chartered fraternal or social organizations for the sole purpose of free distribution in public welfare or
relief work.
Transportation and Transmission Businesses - Purchases made for direct use or consumption in transportation activities.
Transportation and transmission businesses engage in the activity of hauling or delivering goods for others. Persons who haul
or deliver their own goods may not claim this exemption. Purchases that are not for direct use or consumption or whose use
or consumption will only be incidental or convenient or such transportation or transmission activity are taxable.
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TSD 300 | Sales and Use Tax Exemptions
Rev. September 2024 | West Virginia Tax Division
Exemptions Requiring Certicate
Some tax exemptions may be claimed by presenting a properly executed Certicate of Exemption (Form F0003) to the
vendor of the tangible personal property or taxable services. If a vendor fails to obtain a properly completed exemption
certicate from the purchaser or if the purchaser refuses to provide a vendor a properly executed exemption certicate, the
vendor must collect the tax from the purchaser. The following is a list of the Type’s of Business that may claim an Exemption
and the Reasons they can use:
• Purchaser’s Type of Business (Part 3 of Form F0003): Accommodation and food
services; Agriculture, forestry, shing, hunting; Construction; Finance and
insurance; Information, publishing and communications, Manufacturing; Mining;
Real estate; Rental and leasing; Retail trade; Transportation and warehousing;
Utilities; Wholesale trade; Business services; Professional services; Education and
health-care services; Nonprot organization; Government; Not a business.
• Reason for Exemption (Part 4 of Form F0003): Federal, State, Local or Tribal
Government; Charitable, Educational or Religious Organization; Resale;
Agricultural Products; Industrial production/manufacturing; Direct pay permit;
Direct Mail.
Tax Exempt Organizations
Purchases by certain specied entities are exempt from sales and use taxes, as follows:
Certain Nonprot Organizations - Purchases by a corporation or organization that has a current registration certicate and
that is exempt from federal income taxes under section § 501(c)(3) or (c)(4) of the Internal Revenue Code, if the organization
meets all of the requirements set forth in W. Va. Code § 11-15-9(l).
1. The purpose of the sale is to obtain revenue for the activities and functions of the organization;
2. The revenue obtained is exempt form federal income tax and actually used for the purpose of the sale; and
3. The clothing and clothing accessories sold to obtain the revenue were acquired by donation only, meaning
without any compensation or consideration to the donor.
However, purchases will be subject to sales and use tax if more than 50% of the nonprot organization’s income came from
anything other than donations.
Churches - Purchases of services, equipment, supplies, food for meals and materials directly used or consumed by churches
that make no charge whatsoever for the services they provide. These purchases must be paid for directly out of the church
treasury. For more information, see Publication TSD-320.
Government - Purchases by the United States government or the State of West Virginia, including their institutions or
subdivisions and county and municipal governments of West Virginia. Purchases by employees of such government agencies
while on government business are not exempt from sales tax unless such purchases are directly billed to and paid for by the
government agency. Purchases by another state, or by an out-of-state county or municipal government are not exempt
unless the other state or government organization provides the same exemption to the State of West Virginia and its
institutions and subdivisions. Private persons doing business with the government may not claim this exemption.
Schools - Purchases by a school that has its principal campus in this State, is approved by the State of West Virginia to
award degrees, and is exempt from federal and state income taxes under section § 501(c)(3) of the Internal Revenue Code.
Certain Specied Services
The purchase of certain specied services is exempt from sales and use taxes, as follows:
Data Processing - Purchases of electronic data processing services and software related to such purchases, but not
purchases of data processing equipment, materials and supplies.
Films and Arcade Games - Purchases of motion picture lms, coin-operated video arcade machines and other video arcade
games are exempt from sales tax if underlying admissions or playing charges subject to sales tax exist.
Purchases from Afliated Entities - Purchases of services by one corporation, partnership or limited liability company from a
related corporation, partnership or limited liability company are exempt from sales tax when both corporations are members
of the same controlled group.
For more information, you can:
• Call a Taxpayer Services Representative at
(304)558-3333 or toll-free at (800) 982-8297
• Go Online to tax.wv.gov
West Virginia does
not require
purchasers to have
an Exemption
Certicate. However,
vendors still might.
