During the 2017 Session, the Virginia General Assembly enacted House Bill 1518 (2017 Acts of Assembly, Chapter 104), which changed the Retail Sales and Use Tax treatment of separately stated shop supplies for automobile repair shops effective July 1, 2017. Under the legislation, automobile repair shops will be authorized to purchase eligible supplies exempt from the tax and will be required to collect the tax on any separately stated charge billed to the customer for supplies used during automotive repairs.
Since the legislation represents a change in long-standing policy, the Department of Taxation will issue a guidance document to facilitate understanding of and compliance with the new legislation.
To increase government transparency and facilitate the development process, the Department is soliciting comments regarding the development of the guidance document. If you have any comments or if you would like to be included on our list of interested parties to receive a draft of the guidance document, please email TAX-Guidelines@tax.virginia.gov by April 10, 2017. Prior to the effective date of the law change, a draft of the guidance document will be posted on this webpage for comment.
House Bill 1518 (2017)
- HB 1518 Text as passed the House and Senate
- HB 1518 PDF of text as passed the House and Senate (PDF)
- HB 1518 Fiscal Impact Statement