Tax Type
Retail Sales and Use Tax
Description
Automobile maintenance contract; Out-of-state
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
09-28-1989
September 28, 1989
Re: Request for Ruling: Sales and Use Tax
Dear*********************
This is in reply to your letter of August 14, 1989 in which you request a ruling as to the sales tax application to a service maintenance agreement purchased by you from a Virginia car dealer.
FACTS
**********(hereinafter taxpayer), a Delaware resident, purchased an automobile from a Virginia dealer while vacationing in Virginia. The taxpayer returned to Delaware where the automobile was registered. The taxpayer, at a later date, entered into a maintenance contract with the Virginia dealer. The Virginia dealer charged the taxpayer Virginia sales tax on the contract amount. The taxpayer is seeking a ruling as to the proper tax application since the contract was entered into in the state of Delaware.
RULING
As the maintenance agreement in question was entered into in the state of Delaware at the time the contract was signed by the taxpayer, neither the Virginia sales or use taxes would apply.
You may furnish a copy of this letter to the dealer in order to have the Virginia tax removed from your bill.
If you should have any further questions, please feel free to contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner