Tax Code of Virginia
(§§58.1-600 through 58.1-639)
Administrative Code
(Title 23, Agency 10, Chapter 210)
Rulings of the Tax Commissioner

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Virginia - Sales and Use Tax Exemptions and Exemption Certificates

Virgina Sales tax is a privilege tax upon every person who engages in the business of selling at retail or distributing tangible personal property in this Commonwealth, or who rents or furnishes taxable tangible personal property or services, or who stores for use or consumption in this Commonwealth any item or article of tangible personal property or who leases or rents such property within this Commonwealth.

VIRGINIA EXEMPTIONS: Key sales tax exemptions are governmental and commodities exemptions (Virginia Tax Code §58.1-609.1), agricultural exemptions (Virginia Tax Code §58.1-609.2), commercial and industrial exemptions (Virginia Tax Code §58.1-609.3), educational exemptions (Virginia Tax Code §58.1-609.4), service exemptions (Virginia Tax Code § 58.1-609.5), media-related exemptions (Virginia Tax Code §58.1-609.6), medical related exemptions (Virginia Tax Code §58.1-609.7), nonprofit organization exemptions. (Virginia Tax Code §§58.1-609.8, 58.1-609.9, 58.1-609.10, 58.1-609.11)

LIABILITY: All sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, lease, or storage of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt. (Virginia Tax Code § 58.1-623)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

VIRGINIA EXEMPTION CERTIFICATES: The Department of Taxation provides various specialized exemption certificates to claim exemption from sales and use tax. Each exemption certificate explains its use, and it may be reproduced by the dealer for use on purchase orders, sales slips or other documents relating to the transaction.

Exemption certificate shall be signed by and bear the name and address of the taxpayer; shall indicate the number of the certificate of registration, if any, issued to the taxpayer; shall indicate the general character of the tangible personal property sold, distributed, leased, or stored, or to be sold, distributed, leased, or stored under a blanket exemption certificate; and shall be substantially in such form as the Tax Commissioner may prescribe. (Virginia Tax Code§ 58.1-623)

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