Virginia Commissioner Issues Ruling on Retail Sales and Use Tax

The Virginia Tax Commissioner Sept. 13 issued a ruling on the Retail Sales and Use Tax. The Taxpayer, a fabricator of vinyl fencing and other outdoor products, was audited and charged use tax on untaxed purchases of tangible personal property, despite having classified itself as a retailer and collected sales tax. The Commissioner ruled that the Taxpayer, operating as a dual operator, was primarily a fabricator for its own use and consumption, and thus, the use tax assessment was correct, but allowed a one-time credit for the erroneously collected and remitted sales tax against the use tax assessment as per ...