Virginia Regulatory Town Hall
Department of Taxation
Department of Taxation
Retail Sales and Use Tax [23 VAC 10 ‑ 210]
Amendment of the Retail Sales and Use Tax Chapter for Law Changes and Sourcing Rules
Action 4505
General Information
Action Summary This regulatory action is needed to 1) update the Retail Sales and Use Tax rate to the rate provided in the statute, 2) reflect the legislative change allowing dealers to absorb the sales and use tax during the sales tax holiday period, and 3) reflect the legislative change in the dealer discount percentages. Updating the Retail Sales and Use Tax Regulation sections for the rate change and the other legislative changes does not reflect any change in current tax policy and will have no impact on the administration of the Retail Sales and Use Tax. Additionally, effective July 1, 2013, an additional state Retail Sales and Use Tax was imposed in the Northern Virginia and Hampton Roads regions at the rate of 0.7% pursuant to House Bill 2313 (Acts of Assembly 2013, Chapter 766). As the additional 0.7% state Retail Sales and Use Tax is only imposed in certain localities, the total Retail Sales and Use Tax rate may be different depending on which locality the sale or use is sourced. On June 13, 2013, the Department of Taxation published the “Guidelines for the Retail Sales and Use Tax Changes Enacted in the 2013 General Assembly Session” after working with affected dealers, providers of transient lodgings, and local governments. The Guidelines set out rules based on long-standing policy pursuant to Va. Code §§ 58.1-605 and 606 regarding how to determine which Virginia locality is attributed the sale or use of tangible personal property for the purposes of the Retail Sales and Use Tax. This action also will amend the Place of business in Virginia; situs of sale Regulation Section, 23 VAC 10-210-2070, to set out sourcing rules in one regulation.
Chapters Affected Only affects this chapter.
Executive Branch Review This action will go through the normal Executive Branch Review process.
RIS Project Yes  [004601]
Associated Mandates
New Periodic Review This action will not be used to conduct a new periodic review.
Stages associated with this regulatory action.
Stage ID Stage Type Status
7427 Fast-Track Stage complete. This regulation became effective on 09/12/2016.
Contact Information
Name / Title: Andrea Muse 
Address: 600 East Main Street

Richmond, VA 23261-7185
Email Address:
Phone: (804)371-2336    FAX: (804)371-2355    TDD: ()-