Sales And Use Tax Changes Affecting Service Businesses - Publication TSD-335 (Rev. April, 1993)

Oct 22, 2026

West Virginia Department of Tax and Revenue publication TSD-335 explains major sales and use tax law changes enacted in 1989 that affect service businesses effective July 1, 1989. It states that most purchases used in providing taxable services are no longer exempt, because the prior exemption was repealed. It clarifies when a resale exemption may apply, requiring physical transfer to the customer and use of a properly completed tax exemption certificate (WV/CST-280).

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

Service businesses no longer exempt for most purchases

Resale exemption and certificate requirements

Examples of affected service businesses

Contact and ordering information

West Virginia Department of Tax and Revenue Publication TSD-335 (Rev. April, 1993) Sales And Use Tax Changes Affecting Service Businesses The West Virginia Legislature, in 1989, enacted major sales and use tax legislation affecting service businesses. These changes are effective July 1, 1989. The purpose of this publication is to provide general information concerning these law changes. It is not a substitute for tax laws or regulations. SERVICE BUSINESSES NO LONGER EXEMPT FOR MOST PURCHASES Effective July 1, 1989 persons in the business of providing services on which they collect consumers sales tax from their customers are no longer exempt from paying the consumers sales tax or use tax on purchases that they make for use in their business activities. Under prior law, taxable service providers could purchase most items tax free if those items were used in their business of providing a taxable service. This former exemption was repealed effective July 1, 1989. Service businesses will be allowed to claim the exemption for purchases made for resale on items that are sold to their customers in conjunction with the provision of a taxable service. A taxable service provider purchases an item for resale only when the item so purchased is physically transferred to the taxable service provider’s customer. The “resale” exemption is claimed by providing the vendor from whom the service business makes the purchase with a properly completed tax exemption certificate (WV/CST-280) . Examples of the types of businesses which will be affected by this law change are listed on the back of this Publication. An example of how this change will affect a particular business follows: An automotive repair shop purchases office furniture and equipment, automotive repair equipment and tools. Prior to July 1, 1989 the automotive repair business would be exempt from paying the sales tax on these purchases and could supply the vendors from which they make the purchases a properly completed tax exemption certificate as proof of its exempt status. Effective July 1, 1989 the automotive repair business will no longer be exempt on these types of purchases and must pay the sales tax when it makes the purchase. An automotive repair shop purchases automotive parts which will be used in the repair of its customers vehicles. The automotive repair shop bills their customer for parts and labor and collects the consumers sales tax from the customers on both the parts and labor. The automotive repair business is purchasing the automotive parts for resale to its customers and may issue a tax exemption certificate to the vendor from which it purchased the parts claiming the exemption for purchases made for resale. The Department of Tax and Revenue has an additional publication available which relates to service businesses: TSD-345, Sales And Use Tax-Vendor Responsibility. If you have questions concerning how this law change affects your particular business you should contact: Department of Tax and Revenue Taxpayer Services Division P.O. Box 3784 Charleston, West Virginia 25337-3784 Telephone: (304) 558-3333 or Toll free in West Virginia: 1-800-WVA-TAXS (1-800-982-9297) TDD Service for the hearing imapired: 1-800-2TAXTDD (1-800-282-9833) To order forms or publications please call the automated information system at: (304) 344-2068 or Toll free within West Virginia 1-800-422-2075 To order by mail please use the above address. EXAMPLES OF SERVICE BUSINESSES WHICH WILL BE AFFECTED BY THE SALES AND USE TAX CHANGES Advertising agencies Aerobic/exercise instruction Aircraft charter service Aircraft repair service Alteration and repair of real property Alterations of tangible personal property Automobile repair Billboards Billiards, pool Boarding kennels Bowling alleys Burglar/fire alarm monitoring service Business machine repair Cake decorating lessons Calibration service Carpet cleaning and repair Caterers Check cashin

FAQs

When do the sales and use tax changes affecting service businesses take effect?

The changes are effective July 1, 1989.

Are service businesses exempt from paying sales and use tax on most business purchases after July 1, 1989?

No. Service businesses collecting consumers sales tax from customers are no longer exempt for most purchases used in their business activities.

How can a service business claim a resale exemption under the changed law?

A resale exemption applies when items purchased are physically transferred to the service business’s customer and the business provides the vendor with a properly completed tax exemption certificate (WV/CST-280).

Where can a business get more information or contact the department?

Questions can be directed to the Department of Tax and Revenue, Taxpayer Services Division at the provided address and telephone numbers listed in the publication, or forms can be ordered using the automated information system or by mail.

Oct 22, 2026

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