Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 210 - RETAIL SALES AND USE TAX
Section 23VAC10-210-490 - Dealers' withdrawals from inventory
Any person who withdraws an item of tangible personal property for his own use from an inventory of property on which no tax has been paid must report tax on the cost price of all property withdrawn for purposes other than sale. For example, a retailer who purchases an inventory of clothing exempt from the tax for purposes of resale, and who withdraws an item from such inventory for personal use, gift or donation, must report tax on the cost price of the item unless such gift or donation is otherwise exempt. Similarly, an item withdrawn from inventory for a promotional give- away or other free distribution, is subject to the tax at the time of withdrawal.
Unless it is known at the time of purchase that an item is for use or consumption by the dealer, all inventory items intended to be resold or used in an exempt manner may be purchased under certificates of exemption.
For withdrawals from manufacturing inventory, see 23VAC10-210-410 and 23VAC10-210-920.
Statutory Authority
§§ 58.1-203 and 58.1-623 of the Code of Virginia.