Tax Type
Retail Sales and Use Tax
Description
Federal retailers excise tax; Trailers, trucks, chassis
Topic
Exemptions
Date Issued
02-29-1984
February 29, 1984
Re: Request for Ruling/Sales and Use Tax
Dear *******************
This will reply to your letter of February 7, 1984 in which you submit a request for a ruling on the applicability of the sales and use tax to the federal retailers excise tax added to the selling price of trailers, trucks, bodies, chassis.
First, I will note that the retail sales and use tax applies only to bodies, chassis, and motor vehicles not required to be licensed in Virginia. Trucks and trailers though are subject to the motor vehicle sales and use tax administered by the Virginia Division of Motor Vehicles.
§ 58-441.4(a) of the Code of Virginia mandates that the retail sales tax shall be computed on the gross sales of a retailer. Virginia Code § 58-441.3(a) states that the term "gross sales shall not include the federal retailers excise tax if this excise tax is billed to the purchaser separately from the selling price of the article."
Accordingly, the federal retailers excise tax, when separately stated on a customers invoice or billed separately on another invoice, would be excluded from the sales price of an item for Virginia retail sales and use tax purposes.
The federal manufacturers excise tax is presently excluded from the computation of the motor vehicle sales and use tax under the provisions of Virginia Code § 58-685.12; however, the federal retailers excise tax is not similarly excluded. Questions relating to the correct application of the Virginia motor vehicle sales and use tax should be directed to the Division of Motor Vehicles.
Please contact us if you have any further questions relating to the retail sales and use tax.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner