Virginia Administrative Code › Title 23 - TAXATION › Agency 10 - DEPARTMENT OF TAXATION › Chapter 210 - RETAIL SALES AND USE TAX › Section 23VAC10-210-280 - Certificates of exemption

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Generally. All sales, leases and rentals of tangible personal property are
				subject to the tax until the contrary is established. The burden of proving
				that the tax does not apply rests with the dealer unless he takes, in good
				faith from the purchaser or lessee, a certificate of exemption indicating that
				the property is exempt under the law. The certificate will remain in effect
				except upon notice from the Department of Taxation that it is no longer
				acceptable. However, a certificate that is incomplete, invalid, infirm or
				inconsistent on its face is never acceptable, either before or after notice.
Certificates of exemption in the various categories will be
				  furnished to dealers on request. Each certificate explains its use, and it may
				  be reproduced by the dealer for use on purchase orders, sales slips or other
				  documents relating to the transaction. (See subsection E of this section for an
				  exception).
B. Legitimate
				use of exemption certificates is vital. Reasonable care and judgment must be
				exercised by all concerned to prevent the giving or receiving of false,
				fraudulent or bad faith exemption certificates. An exemption certificate cannot
				be used to make a tax free purchase of any item of tangible personal property
				not covered by the exact wording of the certificate.
C. Illustrations of the misuse of exemption
				certificates.
1. Purchases under Form ST-10
				(resale exemption certificate) by a registered dealer, who is operating a
				grocery store, for example, of items such as adding machines, typewriters, cash
				registers, or showcases for use in the business. Such items are subject to the
				tax. No exemption certificate offered in making such a purchase is
				acceptable.
2. Purchases under Form
				ST-10 (resale exemption certificate) by a registered automobile dealer, garage
				or service station operator, of items such as jacks or hand tools for use in
				the business. Such items are subject to the tax. No exemption certificate
				offered in making such a purchase is acceptable.
3. Purchases under Form ST-10 (resale
				exemption certificate) by a registered operator of a hotel, motel, inn or
				restaurant, of items such as furniture or fixtures; fuel oil, coal or bottled
				gas for heating or cooking; linens, refrigerators or stoves, for use in the
				business. Such items are subject to the tax. No exemption certificate offered
				in making such a purchase is acceptable.
4. Purchases under Form ST-11 (manufacturers
				exemption certificate) by the operator of a manufacturing, processing or mining
				business of items such as tires, batteries or repair parts for delivery
				equipment; tools for use in repairing machinery; office furniture or office
				machines; or office supplies. Such items are not used directly in
				manufacturing, mining, processing, refining or converting products for sale or
				resale and are subject to the tax. No exemption certificate offered in making
				such a purchase is acceptable.
5.
				Purchases under Form ST-18 (agricultural exemption certificate) of items such
				as tires, batteries or repair parts for off-the-farm vehicles; feed for pets;
				feed for riding or pleasure horses; or household equipment or supplies. Such
				items are not for use in agricultural production for market and are subject to
				the tax. No exemption certificate offered in making such a purchase is
				acceptable. A person who calls himself a "farmer" but who is not engaged in the
				business of producing agricultural products for market is not entitled to claim
				any agricultural exemption. No exemption certificate offered by him in making a
				purchase is acceptable.