Virginia Administrative Code
Title 23 - TAXATION
Agency 10 - DEPARTMENT OF TAXATION
Chapter 230 - WATERCRAFT SALES AND USE TAX
Section 23VAC10-230-75 - Dealer exclusion

A. Generally. Any person determined by the Tax Commissioner to be a dealer and who desires to transfer ownership in watercraft without first titling them, must apply with the Tax Commissioner for a dealer certificate of registration.

If a person is determined by the Tax Commissioner to be a dealer in watercraft and is registered, he will be exempt from the Watercraft Sales and Use Tax as to all watercraft he purchases for resale or for lease, charter, or other use for compensation. However, a registered dealer is subject to a tax of 2.0% of the gross receipts from the lease, charter, or other use of any watercraft so used.

B. Gross receipts. Gross receipts includes hourly rental, maintenance, and all other charges for use of such watercraft. Also, unless separately stated on the invoice, gross receipts includes charges for piloting, crew, or other services in connection with the use of such watercraft.

For purposes of the dealer exclusion, the dealer is the user of the watercraft and is subject to tax on his gross receipts. Therefore, gross receipts from rentals, leases or charters to the United States or any governmental agencies thereof, or to the Commonwealth of Virginia or any political subdivision thereof, are includible in the dealer's gross receipts and subject to the tax.