Tax Type
Retail Sales and Use Tax
Description
Catalog sales; Out-of-state vendor
Topic
Collection of Tax
Date Issued
06-18-1984
June 18, 1984
Re: Ruling Request: Sales and Use Tax
Dear ****
This will reply to your letter of February 17, 1984, concerning sales made into Virginia by vendors outside the state by means of catalogs.
Sales tax is imposed by Va. Code § 58-441.4 on every person who engages in the business of selling at retail or distributing tangible personal property in Virginia. Va. Code § 58-441.5 imposes a complementary use tax on the use or consumption of tangible personal property in Virginia. Dealers who have sufficient content with Virginia are required by Virginia Code § 58-44.12 to collect the sales or use tax. The type of contact needed is for a dealer (i) to have within Virginia, directly or through an agent or subsidiary, an office, warehouse, or place of business of any nature; (ii) to solicit business in Virginia by employees, independent contractors, agents or other representatives; (iii) to advertise in newspapers or other periodicals printed and published within Virginia on billboards or posters located in Virginia, or through materials distributed in Virginia other than by U. S. mail; or (iv) to make regular deliveries of tangible personal property within Virginia by means other than common carrier.
An out-of-state vendor who sells to Virginia residents means of catalogs sent through the mail and who ships the merchandise to Virginia by non-common carrier vehicles 12 or fewer times a calendar year or by common carrier is not a dealer for purposes of Virginia retail sales and use tax. Although the Department encourages such out-of-state vendors to register and collect use tax as a service to their Virginia customers (Va. retail Sales and Use Tax Regulations 1-76), it cannot compel such.
If You have any additional questions, please let me know.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner