Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 210 - RETAIL SALES AND USE TAX
Section 23VAC10-210-691 - Governments; sales by
Current through Register Vol. 41, No. 3, September 23, 2024
A. Generally. Except as provided in this section, sales by the Commonwealth, its agencies and political subdivisions generally are taxable.
Since the obligation to collect the tax cannot be imposed upon the federal government, purchases of tangible personal property from the federal government or its agencies, are subject to the use tax, except as provided in this section and 23VAC10-210-692 A or unless the items are otherwise exempt. Purchases from the state and local governments are subject to the use tax where the state agency or locality does not collect the sales tax from the purchaser. See 23VAC10-210-6000 for a further explanation of the use tax.
Any state agency or locality making sales of tangible personal property not otherwise exempt shall register as a dealer with the department and collect and remit the sales tax on its sales. Any agency or locality collecting the tax shall be entitled to the dealer's discount. See 23VAC10-210-480.
B. Exempt sales. Sales by the state, its agencies, or political subdivisions of the following are exempt from the tax:
wills;
The above list is intended to be exemplary and not all inclusive.
Materials provided by the State Board of Elections pursuant to §§ 24.2-404 and 24.2-405 of the Code of Virginia are exempt from the tax.
Official flags of the United States, the state or any county, city or town in Virginia sold by a governmental agency are exempt from the tax.
C. Taxable sales. Sales of the following items of tangible personal property by the state, its agencies and political subdivisions, and the United States, are taxable:
Statutory Authority
§§ 58.1-203, 58.1-609.1(7) and (8) and 58.1-609.4(1) of the Code of Virginia.