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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 210. Retail Sales and Use Tax
11/21/2024

23VAC10-210-1080. Occasional sale.

A. Generally. The tax does not apply to an occasional sale provided the sale or exchange is not one of a series of sales or exchanges sufficient in number, scope and character to constitute an activity requiring the holding of a certificate of registration.

B. Occasional sale defined. The term "occasional sale" means:

1. A sale by a person who is engaged in sales on three or fewer separate occasions within one calendar year, except that sales at fairs, flea markets, circuses and carnivals and sales made by peddlers and street vendors are not occasional sales; or

2. A sale of tangible personal property not held or used by a seller in the course of an activity for which he is required to hold a certificate of registration. The words "not held or used by a seller in the course of an activity for which he is required to hold a certificate of registration" mean that a registered dealer is not entitled to an occasional sale exemption solely by virtue of the fact that the article sold may be of a different class from the merchandise he/she regularly sells; or

3. The sale or exchange of all or substantially all the assets of any business; or

4. The reorganization or liquidation of any business.

The following examples illustrate the application of the occasional sale exemption:

Example 1: If Company A, which holds a certificate of registration only for retail sales made in its employee cafeteria, sells one piece of computer equipment, such transaction will be deemed an occasional sale since the computer is not property used in the cafeteria, which is the activity for which A is required to hold a certificate of registration.

Example 2: If Company B, which operates a hotel and holds a certificate of registration for collecting tax on room rentals, sells beds and mattresses used in the hotel, the occasional sale exemption is inapplicable since the property being sold is being used in the activity for which B is required to hold a certificate of registration.

Any person who is engaged in limited sales activity is encouraged to request a written ruling on the applicability of the occasional sale exemption to the sales activity.

C. Purchases. Any person who purchases an item in a transaction which is deemed an "occasional sale" shall likewise not be liable for any use tax on such purchase.

For auctioneers, agents and factors, see 23VAC10-210-140.

Statutory Authority

§§ 58.1-203 and 58.1-609.10(2) of the Code of Virginia.

Historical Notes

Derived from VR630-10-75; revised July 1969; January 1, 1979; amended, eff. January 1, 1985.

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