Administrative Code

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

23VAC10-210-6042. Vending machine sales; dealers under contract with nonprofit organizations.

A. Registration requirements. A separate Certificate of Registration is required for each county and city in which vending machines are placed. Dealers holding multiple registrations may request permission to file a consolidated return at the time of application.

B. Computation of tax. Dealers engaged in the business of placing vending machines all of which are under contract to nonprofit organizations may deduct sales of $.10 or less from gross receipts and divide the remaining balance by 1.053 (1.06 in the Hampton Roads and Northern Virginia Regions) to determine the amount of taxable sales upon which the tax is due and payable. To qualify for this method of computing the tax, all machines of the vending machine dealer must be under contract to nonprofit organizations. For definitions of the "Hampton Roads Region" and the "Northern Virginia Region" see 23VAC10-210-2070.

C. Filing of returns. The Retail Sales and Use Tax Return, is required to be filed for each locality in which vending machines are placed by the 20th day of the month to report the 5.3% (6.0% in the Hampton Roads and Northern Virginia Regions) tax on (i) sales made in the previous period and (ii) untaxed purchases for use or consumption by the dealer or withdrawals from tax exempt inventory for use or consumption by the dealer.

D. Records. A contract shall be kept for each vending machine under contract to nonprofit organizations. Additionally, records shall be kept for a period of four years to show the location of each vending machine, purchases and inventories of merchandise bought for sale, and total gross receipts for each vending machine separating items sold for $.10 or less from items sold for more than $.10.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-10-110 § 3; revised July 1, 1969; January 1, 1979; January 1, 1985; December 1, 1986; May 1, 1988; amended, eff. May 15, 1988; amended, Virginia Register Volume 23, Issue 24, eff. September 6, 2007; Volume 32, Issue 22, eff. September 12, 2016.

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