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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 210. Retail Sales and Use Tax
12/30/2024

23VAC10-210-400. Containers, packaging materials, and equipment.

A. Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

"Packaging materials" means items which are used to package products for sale and which become the property of the purchaser subsequent to the sale. Examples of such items are containers, labels, sacks, cans, boxes, drums, and other similar items.

"Transportation devices" means items which are used to transport and protect products for sale and to restrain product movement in a single plane of direction. Examples of such items are pallets, dunnage, strapping and similar materials used to brace or secure cargo for transport.

B. Exempt uses. Packaging materials may be purchased tax exempt if the items are marketed with the product being sold and become the property of the purchaser. Packaging materials which do not become the property of the purchaser are subject to the tax.

Packaging material may be purchased exempt by industrial manufacturers, processors or miners, regardless of whether they are returnable or nonreturnable (see 23VAC10-210-320).

Transportation devices are not packaging materials and may not be purchased tax exempt unless purchased for resale.

C. Taxable uses. Packaging materials and transportation devices, the ownership of which remains with the seller and does not pass to the customer are taxable. Persons who provide packaging and transportation services must pay the tax on all material used in providing such services unless the materials are resold to a customer and no transportation services are provided therewith.

D. Equipment. The tax applies to the purchase of equipment for use in the operation of a business even though such equipment may be used in connection with the shipment or sale of tangible personal property. Examples of property which is subject to the tax are truck bodies and trailers, tank and freight cars, containerized cargo, shopping carts and baskets, crates, dispensers, dishes, beverage glasses, and similar articles which are not resold and do not become the property of the purchaser.

Statutory Authority

§§ 58.1-203 and 58.1-609.3(2)of the Code of Virginia.

Historical Notes

Derived from VR630-10-26 §§ 1-4; revised January 1, 1979; January 1, 1985; amended, eff. July 1, 1994.

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