Administrative Code

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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department Of Taxation
Chapter 210. Retail Sales and Use Tax
2/25/2021

23VAC10-210-780. Interstate and foreign commerce.

A. Generally. The tax does not apply to sales of tangible personal property in interstate or foreign commerce. A sale in interstate or foreign commerce occurs only when title or possession to the property being sold passes to the purchaser outside of Virginia and no use of the property is made within Virginia. The following examples illustrate transactions in interstate and foreign commerce to which the tax does not apply:

1. The sale of tangible personal property delivered to the purchaser outside of the state in the seller's vehicle;

2. The sale of tangible personal property delivered to the purchaser outside of the state by an independent trucker or contract carrier hired by the seller;

3. The sale of tangible personal property delivered by the seller to a common carrier or to the U.S. Post Office for delivery to the purchaser outside of the state;

4. The purchase of tangible personal property for resale and immediate transportation out of the state by a dealer properly registered in another state provided a valid certificate of exemption is secured by the Virginia seller.

As used in this regulation, the term "foreign commerce" includes the delivery to a factor or agent of tangible personal property for foreign export, provided the property is delivered by the seller to the factor or export agent in the seller's vehicle, by common carrier, by licensed contract carrier or independent trucker hired by the seller or by U.S. mail.

B. Transactions taxable in Virginia. The tax applies to the first use in Virginia of tangible personal property purchased elsewhere in a transaction which would have been taxed had the transaction occurred in Virginia, regardless of the fact that such property may have been, or may be used in interstate commerce, except for foreign export agents or factors as described in subsection A of this section. Any tax due because of first use in Virginia may be subject to credit for like taxes paid elsewhere.

Statutory Authority

§§ 58.1-203 and 58.1-609.10(4) of the Code of Virginia.

Historical Notes

Derived from VR630-10-51; revised July 1, 1969; January 1, 1979; amended, eff. January 1, 1985.

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