Tax Type
Retail Sales and Use Tax
Description
Manufacturing, processing, assembling, or refining; Packaging materials
Topic
Taxability of Persons and Transactions
Date Issued
10-31-1994
October 31, 1994
Re: Request for Ruling: Sales and Use Tax
Dear*********
This is in reply to your letter of October 6, 1994 in which you request a ruling as to the sales and use tax application to packaging materials used to wrap merchandise at the point of sale, such as tissue paper, bags, boxes, etc., the ownership of which transfers to the customer at the time of sale.
Virginia Regulation (VR) 630-10-26 (copy enclosed) addresses packaging materials, containers, and equipment and provides for the following:
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- Packaging materials, such as containers, labels, sacks, cans, boxes, drums, bags and other similar items may be purchased tax exempt by wholesalers and retailers as purchases for resale, if the items are marketed with the product being sold and become the property of the purchaser.
Based on the information provided, the items in question are clearly classified as packaging materials and may be purchased tax exempt for resale. If you should have any further question, please feel free to contact the department.
Sincerely,
Danny M. Payne
Tax Commissioner
OTp/8554K
Rulings of the Tax Commissioner