Sales, Use and International Tax Activity Update - August 2010

Virginia Espouses Once Exempt – Really, it is Exempt!

A manufacturer's sale of a maintenance contract that includes both repair parts and labor is exempt from Virginia retail sales tax because the maintenance contract is for the servicing of exempt machinery used directly in the manufacturing process.

Ruling of Commissioner, P.D. 10-131, Virginia Department of Taxation, July 12, 2010.

The Ruling of Commissioner, P.D. 10-131 can be viewed on the Virginia Department of Taxation Web site.

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