Administrative Code

Virginia Administrative Code
5/23/2024

Chapter 220. Aircraft Sales and Use Tax

23VAC10-220-5. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Aircraft" means any contrivance used or designed for and capable of untethered navigation or flight in the air carrying one or more persons at an altitude greater than 24 inches above the ground, except such term shall not include a parachute or a "hang glider." (See § 5.1-1 of the Code of Virginia.)

"Commissioner" means the Tax Commissioner.

"Dealer" means any person the Tax Commissioner finds to be in the regular business of selling aircraft and who owns five or more aircraft at anytime during the calendar year that are held for resale or used for compensation. The term "owns" includes aircraft acquired under leases qualifying as sales as defined in this section.

"Gross receipts" means hourly rental, maintenance, and all other charges for use of such aircraft. Also, unless separately stated on the invoice, "gross receipts" includes all charges for services of pilots or instructors in such aircraft.

"Person" means every natural person, firm, partnership, association, corporation, or other entity.

"Sale" means any transfer of ownership or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of an aircraft, including transactions whereby possession is transferred but title is retained by the seller as security. The term "lease or rental" shall be restricted to include only a lease or rental for a period of time substantially equal to the remaining life of the aircraft as determined at the beginning of the lease term or a lease or rental in which the payments during the term of the lease will substantially equal the value of the aircraft.

1. The remaining life of the aircraft shall be estimated in accordance with generally accepted accounting principles, considering factors such as physical deterioration, normal obsolescence, maintenance, and intensity of use.

2. The term "substantially equal" shall mean "equal to or exceeds 80%."

3. The term "value of the aircraft" shall mean the current market value of the aircraft in accordance with such publications or other data as are customarily employed in ascertaining the maximum sale price of an aircraft.

The same sale will not be subject to the tax more than once. However, unless it is an exempt transfer, each time a transfer of ownership or possession takes place, the new owner will be subject to the tax on the transfer.

"Sale" does not include the following:

1. Any transfer of ownership or possession which transfer is made to secure payment of an obligation.

2. Any transfer of ownership or possession that is incidental to repossession under a lien and under which ownership is transferred to the lien holder, his nominee, or a trustee, pending ultimate disposition or sale of the collateral.

3. Any transfer of ownership or possession that is part of the sale of all or substantially all the assets of a business. The exemption applies only to aircraft upon which Virginia aircraft sales and use tax has been paid upon acquisition or use by the transferor and does not include nonlicensed aircraft held for resale by a dealer or manufacturer or any other aircraft held or used for exempt purposes by the transferor. The tax status of such aircraft will be determined by the transferee's purposes and use of the aircraft. The term "substantially all the assets" shall mean "80% or more."

4. Any transfer of ownership or possession by survivorship, inheritance, or gift. The exclusion from "sale" referred to in this subdivision 4 is limited to bona fide gifts without consideration. A gift for services rendered or any other form of consideration is a sale and is subject to Virginia aircraft sales tax.

5. Any transfer of ownership or possession from an individual or partnership to a corporation or from a corporation to an individual or partnership if the transfer is incidental to the formation, organization, reorganization, or dissolution of a corporation in which the individual or partnership holds a controlling interest. For purposes of this exclusion, a controlling interest means the ownership of at least 80% of all outstanding shares of voting stock.

6. Any transfer of ownership from a partner to the partnership in which he is a partner will be deemed a taxable sale only to the extent of the aggregate interests of partners other than the transferring partner. Similarly, any transfer of ownership from a partnership to a partner will be deemed a taxable sale only to the extent of the aggregate interests of partners other than the transferee partner.

7. Any transfer of ownership or possession between affiliated corporations if Virginia aircraft sales and use tax or Virginia retail sales and use tax was paid on the acquisition or use of the transferred aircraft by the transferring corporation. For purposes of this exclusion, two or more corporations shall be deemed affiliated if (i) one corporation owns at least 80% of the outstanding shares of voting stock of the other or others or (ii) at least 80% of the outstanding shares of voting stock of two or more corporations is owned by the same interests.

Example 1: Corporation A purchased in 1980 an aircraft and paid Virginia aircraft sales and use tax on the purchase. In 1983, Corporation A acquired all of the capital stock of Corporation B and transferred its aircraft to Corporation B. The transfer would not be subject to Virginia aircraft sales and use tax because it would represent a transfer between qualified affiliates (parent owning as least 80% of subsidiary).

Example 2: Corporation C purchased an aircraft in Delaware in March 1982. In June 1982, Corporation C acquired all of the capital stock of Corporation D, a Virginia corporation, and transferred its aircraft to Corporation D. The acquisition of the aircraft by Corporation D is subject to Virginia aircraft sales and use tax. While this would represent a transfer between qualified affiliates, Virginia aircraft sales and use tax was not paid on the acquisition of the transferred asset by the transferring corporation.

Example 3: Individual A owns 100% of the voting stock of Corporation E and 85% of the voting stock of Corporation F. Both corporations operate businesses in Virginia. In 1982, Corporation E transfers to Corporation F an aircraft which it had previously purchased and on that it had paid aircraft sales and use tax. The transfer would not be subject to Virginia aircraft sales and use tax because it would represent a transfer between qualified affiliates (at least 80% of the voting stock of each corporation is owned by the same owner) and because Virginia aircraft sales and use tax was paid on the acquisition of the transferred aircraft by the transferring corporation.

Example 4: Individual A is the sole owner of an aircraft. A transfers the aircraft to Partnership ABC in which he is a partner owning a 1/3 interest in the partnership property. A's 1/3 interest in the aircraft is not subject to tax since A is deemed to have retained 1/3 of his previous 100% ownership on which he had paid aircraft sales and use tax. The 2/3 interest in the aircraft owned by Partners B and C is subject to the aircraft sales and use tax. To the extent of this interest, a transfer qualifying as a sale took place.

Example 5: Partnership XYZ transferred its aircraft that it had purchased and on which it had paid Virginia aircraft sales and use tax to Partner Z on January 1, 1983. Each partner is deemed to own a 1/3 interest in the aircraft. The taxable portion of the transfer is the 2/3 interest owned by Partners X and Y.

8. Transfer of aircraft repair parts, accessories, attachments, and lubricants, not included in the same transaction with the transfer of aircraft. Sales of all such tangible personal property are subject to the Virginia retail sales and use tax and reportable on Form ST-9, Dealer's Retail Sales and Use Tax Return.

"Retail sale" means a sale to a consumer or to any person for any purpose other than for resale and includes any transaction the commissioner, upon investigation, finds to be in lieu of a sale.

"Retail sale" does not include the mere transfer of titled ownership between husband and wife, where there has been no contractual consideration for the transfer and where no loss resulting from the transfer would constitute an allowable deduction for federal or state income tax purposes. No substantive change in equity ownership has occurred and the transfer is not subject to Virginia aircraft sales and use tax.

"Sale price" means the total price paid for an aircraft and all attachments thereon and accessories thereto, without any allowance or deduction for trade-ins or unpaid liens or encumbrances, but exclusive of any federal manufacturers' excise tax.

"Attachments thereon" and "accessories thereto" as used herein mean all tangible personal property that is physically attached to the aircraft, including installation charges, or property that is customarily used in aircraft, whether or not affixed to the structure of the aircraft, and that was transferred in the same transaction as the aircraft as a part of the aircraft sale. Such tangible personal property transferred other than in the same transaction with the aircraft will be subject to the Virginia retail sales and use tax imposed pursuant to Chapter 6 (§ 58.1-600 et seq.) of Title 58.1 of the Code of Virginia.

Charges for lettering and get-ready charges (i.e., cleaning, washing, and preparing) are also included in the sale price when made in the same transaction with the aircraft transfer.

Charges for federal manufacturer's excise tax, insurance, and gasoline are excluded from the sale price, when separately stated on the invoice.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1501, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 33, Issue 10, eff March 27, 2017; Volume 33, Issue 10, eff. March 27, 2017.

23VAC10-220-10. Tax levied.

A. Generally. The Virginia aircraft sales and use tax is imposed at the rate of 2.0% upon the retail sale of every aircraft sold in the Commonwealth and upon the nonexempt use in Virginia of any aircraft.

B. Tax rate application. The tax is to be collected by applying the 2.0% rate as follows:

1. Aircraft sold in Virginia. For aircraft sold in Virginia, the amount of tax is 2.0% of the sale price of the aircraft. The tax is levied on the date the application was required to be made to the Department of Aviation to obtain the license to operate the aircraft. See 23VAC10-220-50.

a. The Virginia aircraft sales tax applies to all aircraft sold and required to be licensed in Virginia, including occasional sales. "Occasional sale" means a sale of an aircraft by anyone not a dealer in aircraft. See 23VAC10-220-50 for information concerning payment of tax.

b. No tax is applicable to an aircraft that is not required to be licensed by the Department of Aviation.

Example 1: Individual A purchased a plane in Virginia on January 1, 1983, and applied for a license to operate the aircraft on the same day. The purchase price of the plane was $12,000. The tax is levied on the date of purchase and A must pay the Virginia aircraft sales tax of $240 based upon the sale price.

Example 2: Individual B purchased a plane in Virginia for $25,000 on January 1, 1982, and stored the plane for use in Virginia while she took flying lessons. B applied to the Department of Aviation for a license to operate the aircraft on September 1, 1982. The tax is levied September 1, 1982, on the original purchase price of $25,000.

Note: 23VAC10-220-50 requires the aircraft sales and use tax to be paid prior to the time the owner applies to the Department of Aviation for and obtains a license to operate the aircraft. 23VAC10-220-20 requires the tax to be based upon the current market value of the aircraft if first used or stored for use in Virginia six months or more after its acquisition. The current market value is not applicable in the case at hand because the plane qualified as an aircraft when purchased on January 1, 1982, and was first stored for use in this state on that date, even though the aircraft was not required to be licensed until nine months later.

Example 3: Individual C purchased a plane kit in Virginia on June 1, 1982. The kit is subject to the retail sales and use tax when purchased since the kit does not meet the definition of an aircraft at the time of purchase. When the kit is assembled, and qualifies as an aircraft, it is subject to the aircraft sales and use tax on the assembled cost. See 23VAC10-220-30 C.

2. Aircraft not sold in Virginia. For aircraft not sold in Virginia but required to be licensed for use in Virginia, the amount of tax is 2.0% of the sale price of the aircraft, wherever sold; however, if the aircraft is not sold in Virginia and is first required to be licensed in Virginia six months or more after its acquisition, the tax is imposed at 2.0% of the current market value of the aircraft if such current market value is less than the sale price of the aircraft including the cost of any modifications, improvements, or additions subsequent to initial acquisition. See 23VAC10-220-20.

a. The term "required to be licensed" as used in this section refers to the licensing provisions of Chapter 1 (§ 5.1-1 et seq.) of Title 5.1 of the Code of Virginia. Section 5.1-5 requires that before operating any aircraft, the owner must obtain from the Department of Aviation an aircraft license for such aircraft.

b. The term "current market value" as used in this section means an average value considering age, make, model, and included accessories in accordance with such publications or other data as are customarily employed in ascertaining the sale price of used aircraft.

c. The same transaction will not be subject to the tax more than once. However, each time a sale takes place, or an aircraft is brought into use in Virginia and required to be licensed, the new owner or new user in Virginia will be subject to the tax on the transaction.

d. The Virginia aircraft sales and use tax is not applicable to the use of any aircraft that is not required to be licensed by the Department of Aviation.

3. Aircraft leased, rented, or chartered. Dealers in aircraft as defined in 23VAC10-220-5 may elect to license for commercial use one or more aircraft held for lease, rental, charter, or other compensatory use, without payment of the Virginia aircraft sales and use tax based upon the sale price, subject to certain requirements and restrictions as regulated.

Any person who revokes his election immediately becomes liable for the Virginia aircraft sales and use tax as regulated in subdivisions 1 and 2 of this subsection.

C. Tax levy on lease or rental defined as sale. The Virginia aircraft sales tax is imposed upon the retail sale of an aircraft; however, the purchaser is responsible for payment of the tax. For purposes of a lease or rental defined as a sale under 23VAC10-220-5, the lessee or person renting the aircraft is deemed the purchaser of the aircraft and is responsible for payment of the applicable tax.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1502, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 33, Issue 10, eff. March 27, 2017.

23VAC10-220-20. Basis of tax; estimate of tax; penalty for misrepresentation.

A. Basis of tax for sale or use. The commissioner shall levy and collect tax for the use or sale of an aircraft upon the basis of the sale price of the aircraft.

1. Invoice required. Any person who sells an aircraft in Virginia must supply the buyer with an invoice signed by the seller or his representative. The invoice must state the sale price of the aircraft. The buyer must present the invoice to the commissioner with his return and payment of the tax.

2. Basis of tax. The basis of the tax is the sale price, including any amount credited for trade-in or any other transaction of like nature, except that if the aircraft is first used or stored for use in Virginia six months or more after its acquisition, the tax will be based on the current market value.

Under the regulated definition of "aircraft," the six-month period referred to in this section begins only when a plane is capable of flight.

Example 1: Individual D purchased in Virginia on January 1, 1982, an inoperable wrecked plane. The aircraft was stored for repairs until September 1, 1982, when the aircraft license application was made. The aircraft sales and use tax is levied on the acquisition cost on September 1, 1982, when the plane qualified as an "aircraft." No credit is allowable for the retail sales and use tax imposed pursuant to Chapter 6 (§ 58.1-600 et seq.) of Title 58.1 of the Code of Virginia paid on the purchase of repair parts.

Example 2: Individual E purchased an aircraft in Maryland on January 1, 1982, and used it in Maryland until September 1, 1982, when licensed for use in Virginia. The tax is levied on the current market value of the aircraft on September 1, 1982, since it was brought into Virginia for use more than six months after acquisition.

Example 3: On January 1, 1982, individual A purchased an inoperable wrecked plane in North Carolina and transported the wreckage to Virginia on the day of purchase. The plane was brought into Virginia for restoration and ultimate use in the Commonwealth. The repairs were completed and the aircraft license application was made on September 1, 1982. The tax is levied on September 1, 1982, on the original cost of the wrecked plane plus restoration cost. The plane did not qualify as an aircraft in Virginia until capable of flight and therefore the tax is levied at such date.

B. Basis of tax for monthly gross receipts return. An approved and registered dealer must submit monthly returns to the department and remit Virginia aircraft sales and use tax upon the gross receipts from the lease, rental, charter, or other compensatory use of any aircraft he elects to exclude from the sales tax at time of purchase. For purposes of this section, the terms "lease" and "rental" refer only to leases or rentals not qualifying as sales under 23VAC10-220-5.

C. Invoice not available, assessment by commissioner. Where the invoice is not available, or where the commissioner has reason to believe the invoice does not reflect the true sale price, or the aircraft was purchased more than six months prior to its use or storage in Virginia, the commissioner may assess the tax. Under these circumstances, the tax may be assessed in accordance with such publications or other data as are customarily employed in ascertaining the maximum sale price of aircraft.

D. Fair price for rental or use. If the commissioner finds that a dealer has made a charge for the rental or use of an aircraft that is lower than the fair market value of such rental or use, he may estimate a fair price. An estimate of fair price as used here means in accordance with the cost of the aircraft, the cost of maintenance, the normal rental value as shown in similar transactions, or other relevant data. The amount by which the fair price estimated under this section exceeds the charge actually made by the dealer will be included in "gross receipts" as used in this section.

E. Misrepresentation. Any person who knowingly misrepresents on an invoice between buyer and seller, on any return, or to the commissioner the value of an aircraft or the amount of tax due shall be, upon conviction, guilty of a Class 1 misdemeanor.

Statutory Authority

§ 58.1-203 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1503, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; amended, Virginia Register Volume 33, Issue 10, eff. March 27, 2017.

23VAC10-220-30. Credit against tax.

A. Generally. A credit will be given against the Virginia aircraft sales and use tax imposed on the use of aircraft in Virginia for the amount of tax paid by the owner to another state by reason of the imposition of a similar tax on his purchase or use of the aircraft.

1. For purposes of this section, the term "similar tax" includes a general retail sales and use tax or titling tax imposed with respect to aircraft.

2. In order to obtain credit in this Commonwealth for any similar tax paid to another state for the purchase or use of an aircraft, a copy of the invoice covering the transaction must be furnished, showing tax billed and the state to which paid. If required by the Tax Commissioner, an affidavit shall be furnished stating that such tax has been paid and not refunded.

B. No credit for tax paid to another state on lease or rental of aircraft. No credit will be given against the Virginia aircraft sales and use tax for aircraft acquired in another state and taxed on gross receipts from use in another state since the basis for tax in Virginia is the market value of the aircraft at the time it is brought into Virginia. The market value reflects any decrement attributable to use of the aircraft in another state.

C. No credit for sales tax paid. Credit against the tax will not be given for state sales tax paid on kits or component parts used in construction of an aircraft.

Example 1: A moved his aircraft to Virginia in 1982 from another state. The aircraft was originally purchased in 1980 for $20,000 and sales tax was paid in the amount of $600 to the state of his former residence. The published pricing guide value of the aircraft when moved into Virginia was $16,000.

Since the aircraft was not required to be licensed in Virginia until six months or more after its acquisition, the Virginia use tax will be 2.0% of its current market value, or $320. The credit for a similar tax paid to another state completely offsets the Virginia aircraft sales and use tax and no Virginia tax would be due.

Example 2: X purchased an aircraft in State A which imposed no tax on the purchase; the aircraft was moved to State C and a use tax was imposed on the value of the aircraft by State C in the amount of $200. X then moved the aircraft to Virginia for use in this state and the Virginia tax based on the value of the aircraft was $320. X was required to pay $120 Virginia tax ($320 tax liability less $200 credit for a similar tax paid to another state).

Example 3: Y purchased parts and an engine and built an aircraft which cost $12,000 when completed and required to be licensed in Virginia. The aircraft use tax liability was $240 and Y sought credit for $200 retail sales tax which he paid on the parts and engine he purchased to construct the aircraft. No credit was allowable because no similar tax was paid to Virginia or to another state on the aircraft. The tax paid on parts and engine was not a similar tax paid on the purchase or use of an aircraft.

Example 4: In 1975 B leased an aircraft in State D which imposed a use tax on the lease payments. The long-term lease value of the aircraft was $30,000 and use tax was paid in the amount of $900. B moved the aircraft to Virginia in 1983. The current market value of the aircraft is $5,000 and the remaining lease value is $4,500. The Virginia aircraft tax liability was $100 and B sought credit for the tax paid on the lease in State D. No credit was allowable because the Virginia aircraft tax was based upon the remaining current market value of the aircraft when subject to aircraft tax in Virginia.

Statutory Authority

§§ 58.1-203 and 58.1-1504 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1504, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia.

23VAC10-220-40. Exemptions.

The aircraft sales and use tax does not apply to sales to or use by the United States or any of the governmental agencies thereof, the Commonwealth of Virginia or any political subdivisions thereof, or any airline operating in intrastate, interstate or foreign commerce as a common carrier providing scheduled air service on a continuing basis to one or more Virginia airports.

1. For sales to the United States, the Commonwealth of Virginia or any political subdivision to be exempt from the tax, the purchases must be pursuant to required official purchase orders to be paid for out of public funds. Sales to governmental employees for their own use are taxable. If pursuant to an official purchase order, the tax will not apply to sales to or use by officers' clubs, noncommissioned officers' clubs, officers' messes, noncommissioned officers' messes, and post exchanges organized, operated and controlled under Department of Defense Regulations. The exemption does not cover individuals or organizations operating on a military reservation in their own right. No person is relieved from liability for payment of, collection of, or accounting for the tax on the ground that the sale or use occurred in whole or in part within a federal area.

2. For purposes of this section, the phrase "use by" relates to the exempt use in this state of any aircraft purchased without this state. It has no application in cases where the renter, lessee, or other user is a governmental agency since in such cases the tax is levied on the dealer's use in his leasing, charter or other business.

3. For purposes of this section, the phrase "scheduled air service" means service provided by a single air carrier consisting of regularly scheduled flights to one or more Virginia airports at least five days per week.

4. An aircraft owned and used by an airline only in its operations as a common carrier in intrastate, interstate or foreign commerce is exempt from Virginia aircraft sales and use tax.

a. For purposes of this exemption, an aircraft acquired under a leasing or rental agreement constituting a "sale" as defined in 23VAC10-220-5 shall be deemed to be owned by the lessee.

b. For purposes of this exemption, the sale price or value of an aircraft owned by an airline and used in non-exempt intrastate operations as a contract carrier as well as exempt operations will be apportioned on the basis of such use.

Note: The exemptions of this section do not apply with respect to rentals or leases not qualified as sales, or charters, in the case of a dealer who pays a gross receipts tax under the dealer exclusion, as the gross receipts tax is levied on the dealer and not upon the renter, lessee, or other user.

Statutory Authority

§§ 58.1-203, 58.1-609.1(5) and 58.1-1505 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1505, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia.

23VAC10-220-50. Time for payment of tax.

A. Generally. Except for monthly gross receipts tax, the aircraft sales and use tax is to be paid by the purchaser or user of the aircraft and is to be collected by the Commissioner prior to the time the owner applies to the Department of Aviation for, and obtains an aircraft license. Application for license is to be made with the Department of Aviation. Also see 23VAC10-220-10.

1. As used in this section, the phrase "prior to the time the owner applies to the Department of Aviation for, and obtains an aircraft license" refers to the requirement given in § 5.1-5 of the Code of Virginia.

2. If an aircraft originally acquired for tax exempt use and licensed without payment of the Virginia aircraft sales and use tax is subsequently utilized for non-exempt purposes, it then becomes subject to tax based on the lower of its cost or current market value.

3. If no license is required for an aircraft under § 5.1-5 of the Code of Virginia, then the Virginia aircraft sales and use tax will not be levied on the aircraft, unless transferred under a lease defined as a sale under 23VAC10-220-5.

B. Payment and collection of tax. The tax may be paid to the Department of Taxation at the Richmond headquarters or at the department's field district offices.

C. Monthly gross receipts return and payment. Any dealer, approved for dealer exclusion, must file a gross receipts return on or before the twentieth day of the month following each reporting period, even if no tax is due. Returns are prescribed and furnished by the Department of Taxation. The law does not provide for quarterly, semi-annual or annual returns.

1. No extension will be allowed for filing and/or paying the tax due for the month.

2. If the registered dealer ceases to conduct his business at the place specified in his registration application, the dealer must inform the Commissioner in writing within thirty days after he has ceased to conduct business in his name at such place. If the registered dealer desires to change his place of business, he must inform the Commissioner in writing.

Statutory Authority

§§ 58.1-203 and 58.1-1506 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1506, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia.

23VAC10-220-60. Election by commercial dealer, revocation, eligibility.

A. Generally. A dealer must make application to the Department of Taxation and receive approval prior to operation of the aircraft.

B. Dealer electing to be subject to dealer exclusion; revocation.

1. Any dealer who elects the dealer exclusion must apply to the Department of Taxation, on forms provided upon request, prior to the operation of any aircraft under the dealer exclusion provisions for Virginia aircraft sales and use tax. Upon receipt of the dealer's application for dealer exclusion, the Department of Taxation will notify the dealer of its action.

2. The dealer who receives approval from the Department of Taxation, can revoke such election only by permission of the Tax Commissioner.

3. Any person who revokes an election made under the dealer exclusion provision will be ineligible to elect dealer exclusion for two years following the revocation.

4. Any person who revokes his election immediately becomes liable for the Virginia aircraft sales and use tax levied on aircraft sold.

Statutory Authority

§§ 58.1-203 and 58.1-1507 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1507, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia.

23VAC10-220-70. Retention of documents; examination by Commissioner.

A. Generally. Any person who sells an aircraft in Virginia must retain a copy of the invoice required by § 58.1-1503 of the Code of Virginia for six years following the sale. Any dealer taxed on gross receipts under the dealer exclusion provisions must retain a copy of all invoices for lease, charter or other usage of aircraft for six years following the transaction.

B. Invoice information thereon. Each invoice must accurately describe the aircraft sold, leased or used.

1. Aircraft sales invoice. Sales invoices must contain a complete description of the aircraft sold, including its sale price, its make, model, year, manufacturer's serial number and date of purchase.

2. Dealer's monthly or periodic invoice. For purposes of a dealer's monthly or periodic invoice for lease, rental or other usage of aircraft, the required description is limited to make, model and year; provided the dealer retains a copy of the original purchase invoice for each aircraft so used. The dealer must also maintain a complete record of the gross receipts derived from the rental, lease, charter or other usage of each aircraft, whether placed under the dealer exclusion or not, with each such aircraft identified by its FAA registration number. It shall be prima facie evidence that the receipts are subject to the two percent tax monthly if the records do not clearly show that such income was derived from an aircraft on which the tax was paid at the time of purchase.

C. Examination by Commissioner. The Commissioner may examine during the usual business hours of the day records, books, papers, or other documents of any dealer or other person selling or purchasing aircraft, relating to the receipts or sales prices of any aircraft, to verify the truth and accuracy of any statement or any other information as to a particular sale, lease or other taxable transaction.

Statutory Authority

§§ 58.1-203 nd 58.1-1508 of the Code of Virginia.

Historical Notes

Derived from VR630-11-1508, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia.

23VAC10-220-80. (Repealed.)

Historical Notes

Derived from VR630-11-1509 and VR630-11-1510, eff. January 1, 1985, with retroactive effect according to § 58.1-203 of the Code of Virginia; repealed, Virginia Register Volume 23, Issue 6, eff. February 10, 2007.

FORMS (23VAC10-220).

Dealer's Aircraft Sales and Use Tax Return, Form AST-2 (rev. 5/06)

Virginia Aircraft Sales and Use Tax Return, Form AST-3 (rev. 7/2012)

Sales and Use Tax Certificate of Exemption, Form ST-10 (rev. 9/2015) (For a Virginia dealer who purchases tangible personal property for resale, or for lease or rental, or who purchases materials or containers to package tangible personal property for sale.)

Retail Sales and Use Tax Return, Form ST-9 (rev. 3/2013)

Business Registration Application, Form R-1 (rev. 9/2016)

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