23 Va. Admin. Code § 10-210-450 - Credit for taxes paid to other states or their political subdivisions
A. Generally. Any
person who purchases tangible personal property in another state and who has
paid a sales or use tax to such state or its political subdivision or both on
the property, is granted a credit against the use tax imposed by Virginia on
its use within this state for the amount of tax paid in the state of purchase.
This credit does not require that the state of purchase grant a similar credit
for tax paid to Virginia. This credit does not apply to tax erroneously charged
or incorrectly paid to another state. For example, if a person purchases and
takes delivery in Virginia of tangible personal property purchased from an
out-of-state dealer who incorrectly charges out-of-state tax, no credit is
available. The purchaser must apply to the out-of-state seller for
refund.
B. Amount of credit. The
credit provided in this section is equal to the tax paid to the state or
political subdivision or both in which the property was purchased, but cannot
exceed the Virginia use tax imposed on the property. For example, if property
is purchased in a state which imposes a 6.0% sales and use tax, the credit is
limited to the 5.3% (6.0% in the Hampton Roads and Northern Virginia Regions)
use tax imposed by Virginia. For definitions of the "Hampton Roads Region" and
the "Northern Virginia Region" see
23VAC10-210-2070.
C. Claiming the credit. To obtain a credit
for tax paid to another state or its political subdivision, a person must
apply, by letter, to the department and include a copy of the appropriate
invoice stating the amount of tax billed and the state or political subdivision
or both to which it was paid. A person requesting credit may be required by the
department to furnish an affidavit stating that the tax has been paid and has
not been refunded.
Notes
Statutory Authority: § 58.1-203 of the Code of Virginia.
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