Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-70 - Aircraft sales, leases and rentals, repair and replacement parts and maintenance materials

Current through Register Vol. 40, No. 24, July 15, 2024
A. The
				following words and terms, when used in this regulation, shall have the
				following meanings, unless the context clearly indicates otherwise:
"Aircraft" means any contrivance used or designed for
				  untethered navigation or flight in the air by one or more persons at an
				  altitude greater than 24 inches above the ground. Such term shall not include
				  parachutes.
"Aircraft sales tax" means the tax imposed under Chapter 15
				  (§ 58.1-1500 et seq.) of Title 58.1 of the Code of Virginia.
"Dealer" means any person owning and placing five or more
				  aircraft for resale during a calendar year who the Tax Commissioner finds to be
				  in the regular business of selling aircraft.
"Gross receipts" means the charges made or voluntary
				  contributions received for the hourly rental and maintenance of an aircraft,
				  all other charges for the use of an aircraft and, unless separately stated on
				  the invoice, all charges for services of pilots or instructors in such
				  aircraft. The term shall also include any amount by which the price estimated
				  under § 58.1-1503 of the Code of Virginia exceeds the charge actually
				  made.
"Sales price" means the total amount 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.
B. The sale, lease or rental (including
				charters) of aircraft is not subject to the retail sales and use tax provided
				such transaction is subject to the Virginia aircraft sales and use tax as set
				forth under Chapter 15 (§ 58.1-1500 et seq.) of Title 58.1 of the Code of
				Virginia.
C. Repair and replacement
				parts and accessories installed on an aircraft at the time of sale, which are
				included in the sale price for the purpose of computing the aircraft sales and
				use tax, are exempt from the retail sales and use tax. Such parts and
				accessories are also exempt from the retail sales and use tax when installed on
				leased or rented aircraft when such aircraft are subject to the aircraft sales
				and use tax based upon gross receipts. These items may be purchased by a dealer
				exclusive of the retail sales and use tax when a resale exemption certificate,
				Form ST-10, is presented to the retailer at the time of sale.
The retail sales and use tax is applicable to repair and
				  replacement parts and accessories when an aircraft dealer elects to remit the
				  aircraft sales and use tax upon his purchase of an aircraft rather than upon
				  the gross receipts derived from the lease, charter, or other use of the
				  aircraft. Likewise, purchases of such items by individual aircraft owners or
				  nondealers are subject to the retail sales and use tax.
D. Maintenance materials such as oil, grease,
				soaps, cleaners, etc. used on aircraft are subject to the retail sales and use
				tax. See the Virginia Aircraft Sales and Use Tax Regulations for information
				relating to the aircraft sales and use tax generally.
Statutory Authority
§§ 58.1-203 and 58.1-609.1(5) of the Code of
					 Virginia.