Tax Type
Retail Sales and Use Tax
Description
Antique purchases by out-of-state dealers.
Topic
Exemptions
Property Subject to Tax
Date Issued
04-11-1994
Virginia Department of Taxation
94-4
RETAIL SALES AND USE TAX: ANTIQUE PURCHASES
Under legislation passed by the 1994 General Assembly and signed by Governor Allen, the effective date of the 1993 legislation relating to antique purchases by out-of-state dealers has been deferred to July 1,1995.
Under the law passed by the 1993 General Assembly, Virginia dealers are prohibited from accepting a resale exemption certificate from the purchaser of tangible personal property more than 50 years old if the purchaser does not have a Virginia sales and use tax registration number. See Va. Code §58.1 -602.1. The law became effective January 1, 1994, but a provision in 1994 legislation (House Bill 1175) has deferred the effective date to July 1, 1995.
Accordingly, until July 1,1995, Virginia dealers may continue to accept resale exemption certificates for tangible property more than 50 years old from out-of-state purchasers with no Virginia sales and use tax registration number.
Industry Participation: The department recognizes that there are many issues surrounding the implemen-tation of the new law and would like to form a working group of 10 to 12 interested parties to work with the department over the next year to resolve the issues and ensure that the requirements established under the law are satisfied. Anyone interested in being a part of the working group should contact Randy Melton at (804) 367-9359.
Revised Refund Procedure: In Tax Bulletin 94-1, issued January 19, 1994, it was announced that out--of-state purchasers were to apply to the Virginia dealer who sold the property for a refund or credit of the sales tax paid. In response to concerns raised by Virginia dealers, the department made an administrative decision to handle all refund requests from out-of-state antique dealers.
Prior Compliance: If an out-of-state purchaser presented a resale exemption certificate that was not accepted by a Virginia dealer because of the 1993 law change, the purchaser may apply directly to the department for a refund of the tax paid. A refund will be issued provided that all of the following are supplied: (1) state of registration and sales and use tax registration number; (2) purchase invoice indicating sales price of the items, the tax paid and the name and address of the Virginia dealer; and (3) date of sale. Absent any one of these, a refund will not be issued.
For additional information: Contact the Office of Taxpayer Services, Virginia Department of Taxation, P.O. Box 1115, Richmond, Virginia 23208-1115, (804) 367-8037.
Rulings of the Tax Commissioner