Administrative Code

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

23VAC10-210-450. Credit for taxes paid to other states or their political subdivisions.

A. Generally. Any person who purchases tangible personal property in another state and who has paid a sales or use tax to such state or its political subdivision or both on the property, is granted a credit against the use tax imposed by Virginia on its use within this state for the amount of tax paid in the state of purchase. This credit does not require that the state of purchase grant a similar credit for tax paid to Virginia. This credit does not apply to tax erroneously charged or incorrectly paid to another state. For example, if a person purchases and takes delivery in Virginia of tangible personal property purchased from an out-of-state dealer who incorrectly charges out-of-state tax, no credit is available. The purchaser must apply to the out-of-state seller for refund.

B. Amount of credit. The credit provided in this section is equal to the tax paid to the state or political subdivision or both in which the property was purchased, but cannot exceed the Virginia use tax imposed on the property. For example, if property is purchased in a state which imposes a 6.0% sales and use tax, the credit is limited to the 5.3% (6.0% in the Hampton Roads and Northern Virginia Regions) use tax imposed by Virginia. For definitions of the "Hampton Roads Region" and the "Northern Virginia Region" see 23VAC10-210-2070.

C. Claiming the credit. To obtain a credit for tax paid to another state or its political subdivision, a person must apply, by letter, to the department and include a copy of the appropriate invoice stating the amount of tax billed and the state or political subdivision or both to which it was paid. A person requesting credit may be required by the department to furnish an affidavit stating that the tax has been paid and has not been refunded.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-10-29 §§ 1-3; revised January 1, 1979; January 1, 1985; amended, eff. July 1, 1993; amended, Virginia Register Volume 32, Issue 22, eff. September 12, 2016.

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