Virginia Tax Commissioner Rules on Applicability of Interstate Commerce Exemption

The Virginia Tax Commissioner Oct. 3 issued a ruling on the applicability of the interstate commerce exemption for sales tax. The ruling states that all interstate transactions delivered by common carrier to a purchaser outside of Virginia are sales in interstate commerce and exempt from the tax. However, if a purchaser directs a Virginia dealer to ship retail merchandise to a third party outside of Virginia, the purchaser is considered to have taken constructive possession of the property in Virginia, and such sales do not qualify for the interstate commerce exemption. [Va. Dep’t of Tax’n, Ruling of the Comm’r PD ...