Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 210 - RETAIL SALES AND USE TAX
Section 23VAC10-210-140 - Auctioneers, agents, factors

1. Generally. Except as provided in subdivision 2 of this subsection, an auctioneer, factor or agent cannot make an "occasional sale" of tangible personal property because his business is the sporadic and occasional sale of property. Therefore, an auctioneer, factor or agent must collect the tax on all sales including estate sales and similar sales of short duration.

2. Exception. An auctioneer, factor or agent who sells substantially all the assets of a liquidating or reorganizing business as required in 23VAC10-210-1080 is deemed to be engaged in an occasional sale and is not liable for collection or payment of the tax provided the sale occurs in three days or less. For example, an auctioneer may contract to conduct a two day auction of the assets of a liquidating business. Such sale would qualify as an "occasional sale" and the auctioneer would not be liable for collection of the tax. However, if, for example, the liquidation of the business takes place over a period of three months and the assets are auctioned off on a weekly basis during the period, the occasional sale exemption will not apply and the auctioneer will be required to collect and remit the tax on all sales.