Sales Tax Obligations of Purchasers in Virginia

April 13, 2006

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Virginia imposes various requirements on purchasers doing business in Virginia. We recommend that you go through the items below to help you with the most frequently asked questions concerning purchasers and sales and use tax issues.

Tax exemption certificates. An exemption certificate may be issued by a purchaser of a nontaxable item. The exemption certificate may be based on the type of transaction (such as a resale exemption) or on the item itself.

Resale exemptions. Generally, a sale for resale is not considered a "retail sale" or a "sale at retail" and therefore is not subject to tax. The seller must obtain an exemption certificate from you, the purchaser, to be relieved of the duty to collect tax on a sale for resale.

Resale exemption certificate. Virginia Forms ST-10 through ST-20 are exemption certificates issued by the Virginia Tax Commissioner. The resale exemption certificates should include the following information:

your signature
your name and address
the number of the certificate of registration, if any, issued to you, the purchaser
a description of the tangible personal property

Blanket resale certificates. Certificate holders regularly engaged in making tax-exempt purchases may furnish a certificate to the seller specifying that all tangible personal property subsequently purchased will be for the purpose shown on the certificate. This blanket certificate will relieve the burden of executing a separate certificate for each individual tax-exempt purchase as long as there is no significant change in the operations. A blanket certificate describes the general nature of the property purchased for resale and remains in force until revoked in writing.

Purchases from out-of-state vendors. In Virginia a credit is allowed for sales or use tax paid in another state for tangible personal property used in Virginia. The amount of the credit may not exceed the amount of the Virginia tax.