{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-416.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-416.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-416.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-416.html"}],"law_id":55363,"edition_id":1,"section_id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor’s note) When certain other sales deemed in the Commonwealth","history":"Code 1950, \u00a7 58-151.049; 1971, Ex. Sess., c. 171; 1984, c. 675; 2018, c. 807; 2022, cc. 256, 257; 2023, cc. 405, 406.","full_text":"A\n\nSales, other than sales of tangible personal property, are in the Commonwealth if:1\n\nThe income-producing activity is performed in the Commonwealth; or2\n\nThe income-producing activity is performed both in and outside the Commonwealth and a greater proportion of the income-producing activity is performed in the Commonwealth than in any other state, based on costs of performance.B\n\n1. For debt buyers, as defined in \u00a7 58.1-422.3, sales, other than sales of tangible personal property, are in the Commonwealth if they consist of money recovered on debt that a debt buyer collected from a person who is a resident of the Commonwealth or an entity that has its commercial domicile in the Commonwealth. Such rule shall apply regardless of the location of a debt buyer’s business.2\n\nFor property information and analytics firms, as defined in § 58.1-422.4, that meet the requirements set forth in § 58.1-422.4, sales of services are in the Commonwealth if they are derived from transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of a property information and analytics firm’s business operations.3\n\nFor Internet root infrastructure providers, as defined in § 58.1-422.5, sales of services are in the Commonwealth if they are derived from sales transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of an Internet root infrastructure provider’s operations.C\n\nThe taxes under this article on the sales described under subsection B are imposed to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law. For the collection of such taxes on such sales, it is the intent of the General Assembly that the Tax Commissioner and the Department assert the taxpayer’s nexus with the Commonwealth to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law.D\n\nIf necessary information is not available to the taxpayer to determine whether a sale other than a sale of tangible personal property is in the Commonwealth pursuant to the provisions of subsections B and C, the taxpayer may estimate the dollar value or portion of such sale in the Commonwealth, provided that the taxpayer can demonstrate to the satisfaction of the Tax Commissioner that (i) the estimate has been undertaken in good faith, (ii) the estimate is a reasonable approximation of the dollar value or portion of such sale in the Commonwealth, and (iii) in using an estimate the taxpayer did not have as a principal purpose the avoidance of any tax due under this article. The Department may implement procedures for obtaining its approval to use an estimate. The Department shall adopt remedies and corrective procedures for cases in which the Department has determined that the sourcing rules for sales other than sales of tangible personal property have been abused by the taxpayer, which may include reliance on the location of income-producing activity and direct costs of performance as described in subsection A.","order_by":null,"text":{"0":{"id":202998,"text":"Sales, other than sales of tangible personal property, are in the Commonwealth if:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":202999,"text":"The income-producing activity is performed in the Commonwealth; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":203000,"text":"The income-producing activity is performed both in and outside the Commonwealth and a greater proportion of the income-producing activity is performed in the Commonwealth than in any other state, based on costs of performance.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":203001,"text":"1. For debt buyers, as defined in \u00a7 58.1-422.3, sales, other than sales of tangible personal property, are in the Commonwealth if they consist of money recovered on debt that a debt buyer collected from a person who is a resident of the Commonwealth or an entity that has its commercial domicile in the Commonwealth. Such rule shall apply regardless of the location of a debt buyer’s business.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"B2"},"4":{"id":203002,"text":"For property information and analytics firms, as defined in § 58.1-422.4, that meet the requirements set forth in § 58.1-422.4, sales of services are in the Commonwealth if they are derived from transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of a property information and analytics firm’s business operations.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"5":{"id":203003,"text":"For Internet root infrastructure providers, as defined in § 58.1-422.5, sales of services are in the Commonwealth if they are derived from sales transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of an Internet root infrastructure provider’s operations.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"6":{"id":203004,"text":"The taxes under this article on the sales described under subsection B are imposed to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law. For the collection of such taxes on such sales, it is the intent of the General Assembly that the Tax Commissioner and the Department assert the taxpayer’s nexus with the Commonwealth to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"7":{"id":203005,"text":"If necessary information is not available to the taxpayer to determine whether a sale other than a sale of tangible personal property is in the Commonwealth pursuant to the provisions of subsections B and C, the taxpayer may estimate the dollar value or portion of such sale in the Commonwealth, provided that the taxpayer can demonstrate to the satisfaction of the Tax Commissioner that (i) the estimate has been undertaken in good faith, (ii) the estimate is a reasonable approximation of the dollar value or portion of such sale in the Commonwealth, and (iii) in using an estimate the taxpayer did not have as a principal purpose the avoidance of any tax due under this article. The Department may implement procedures for obtaining its approval to use an estimate. The Department shall adopt remedies and corrective procedures for cases in which the Department has determined that the sourcing rules for sales other than sales of tangible personal property have been abused by the taxpayer, which may include reliance on the location of income-producing activity and direct costs of performance as described in subsection A.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13460,"edition_id":1,"name":"Taxation of Corporations","identifier":"10","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:44:56","date_modified":"2026-06-26 03:44:56","permalink":{"id":253359,"object_type":"structure","relational_id":13460,"identifier":"10","token":"58.1\/I\/3\/10","url":"\/58.1\/I\/3\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":60955,"structure_id":13460,"section_number":"58.1-400","catch_line":"Imposition of tax","url":"\/58.1-400\/","token":"58.1\/I\/3\/10\/58.1-400","metadata":false},{"id":58533,"structure_id":13460,"section_number":"58.1-400.1","catch_line":"Minimum tax on telecommunications companies","url":"\/58.1-400.1\/","token":"58.1\/I\/3\/10\/58.1-400.1","metadata":false},{"id":77310,"structure_id":13460,"section_number":"58.1-400.2","catch_line":"Taxation of electric suppliers, pipeline distribution companies, gas utilities, and gas suppliers","url":"\/58.1-400.2\/","token":"58.1\/I\/3\/10\/58.1-400.2","metadata":false},{"id":79891,"structure_id":13460,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","url":"\/58.1-400.3\/","token":"58.1\/I\/3\/10\/58.1-400.3","metadata":false},{"id":85449,"structure_id":13460,"section_number":"58.1-400.4","catch_line":"Minimum tax on home service contract providers","url":"\/58.1-400.4\/","token":"58.1\/I\/3\/10\/58.1-400.4","metadata":false},{"id":75981,"structure_id":13460,"section_number":"58.1-401","catch_line":"Exemptions and exclusions","url":"\/58.1-401\/","token":"58.1\/I\/3\/10\/58.1-401","metadata":false},{"id":56970,"structure_id":13460,"section_number":"58.1-402","catch_line":"Virginia taxable income","url":"\/58.1-402\/","token":"58.1\/I\/3\/10\/58.1-402","metadata":false},{"id":65538,"structure_id":13460,"section_number":"58.1-403","catch_line":"Additional modifications to determine Virginia taxable income for certain corporations","url":"\/58.1-403\/","token":"58.1\/I\/3\/10\/58.1-403","metadata":false},{"id":61129,"structure_id":13460,"section_number":"58.1-404","catch_line":"Reserved","url":"\/58.1-404\/","token":"58.1\/I\/3\/10\/58.1-404","metadata":false},{"id":84403,"structure_id":13460,"section_number":"58.1-405","catch_line":"Corporations transacting or conducting entire business within this Commonwealth","url":"\/58.1-405\/","token":"58.1\/I\/3\/10\/58.1-405","metadata":false},{"id":56464,"structure_id":13460,"section_number":"58.1-405.1","catch_line":"Eligibility of companies for apportionment modification; certification by the Virginia Economic Development Partnership Authority","url":"\/58.1-405.1\/","token":"58.1\/I\/3\/10\/58.1-405.1","metadata":false},{"id":56080,"structure_id":13460,"section_number":"58.1-406","catch_line":"Allocation and apportionment of income","url":"\/58.1-406\/","token":"58.1\/I\/3\/10\/58.1-406","metadata":false},{"id":56963,"structure_id":13460,"section_number":"58.1-407","catch_line":"How dividends allocated","url":"\/58.1-407\/","token":"58.1\/I\/3\/10\/58.1-407","metadata":false},{"id":86858,"structure_id":13460,"section_number":"58.1-408","catch_line":"What income apportioned and how","url":"\/58.1-408\/","token":"58.1\/I\/3\/10\/58.1-408","metadata":false},{"id":76197,"structure_id":13460,"section_number":"58.1-409","catch_line":"Property factor","url":"\/58.1-409\/","token":"58.1\/I\/3\/10\/58.1-409","metadata":false},{"id":54428,"structure_id":13460,"section_number":"58.1-410","catch_line":"Valuation of property owned or rented","url":"\/58.1-410\/","token":"58.1\/I\/3\/10\/58.1-410","metadata":false},{"id":80735,"structure_id":13460,"section_number":"58.1-411","catch_line":"Average value of property","url":"\/58.1-411\/","token":"58.1\/I\/3\/10\/58.1-411","metadata":false},{"id":60991,"structure_id":13460,"section_number":"58.1-412","catch_line":"Payroll factor","url":"\/58.1-412\/","token":"58.1\/I\/3\/10\/58.1-412","metadata":false},{"id":65358,"structure_id":13460,"section_number":"58.1-413","catch_line":"When compensation deemed paid or accrued in this Commonwealth","url":"\/58.1-413\/","token":"58.1\/I\/3\/10\/58.1-413","metadata":false},{"id":74292,"structure_id":13460,"section_number":"58.1-414","catch_line":"Sales factor","url":"\/58.1-414\/","token":"58.1\/I\/3\/10\/58.1-414","metadata":false},{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},{"id":55363,"structure_id":13460,"section_number":"58.1-416","catch_line":"(Contingent effective date \u2014 See Editor's note) When certain other sales deemed in the Commonwealth","url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","metadata":false},{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},{"id":71471,"structure_id":13460,"section_number":"58.1-418","catch_line":"Financial corporations; apportionment","url":"\/58.1-418\/","token":"58.1\/I\/3\/10\/58.1-418","metadata":false},{"id":87267,"structure_id":13460,"section_number":"58.1-419","catch_line":"Construction corporations; apportionment","url":"\/58.1-419\/","token":"58.1\/I\/3\/10\/58.1-419","metadata":false},{"id":61390,"structure_id":13460,"section_number":"58.1-420","catch_line":"Railway companies; apportionment","url":"\/58.1-420\/","token":"58.1\/I\/3\/10\/58.1-420","metadata":false},{"id":54421,"structure_id":13460,"section_number":"58.1-421","catch_line":"Alternative method of allocation","url":"\/58.1-421\/","token":"58.1\/I\/3\/10\/58.1-421","metadata":false},{"id":75896,"structure_id":13460,"section_number":"58.1-422","catch_line":"Manufacturing companies; apportionment","url":"\/58.1-422\/","token":"58.1\/I\/3\/10\/58.1-422","metadata":false},{"id":56837,"structure_id":13460,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","url":"\/58.1-422.1\/","token":"58.1\/I\/3\/10\/58.1-422.1","metadata":false},{"id":61386,"structure_id":13460,"section_number":"58.1-422.2","catch_line":"Apportionment; taxpayers with enterprise data center operations","url":"\/58.1-422.2\/","token":"58.1\/I\/3\/10\/58.1-422.2","metadata":false},{"id":54726,"structure_id":13460,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","url":"\/58.1-422.3\/","token":"58.1\/I\/3\/10\/58.1-422.3","metadata":false},{"id":84482,"structure_id":13460,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","url":"\/58.1-422.4\/","token":"58.1\/I\/3\/10\/58.1-422.4","metadata":false},{"id":76648,"structure_id":13460,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","url":"\/58.1-422.5\/","token":"58.1\/I\/3\/10\/58.1-422.5","metadata":false},{"id":63840,"structure_id":13460,"section_number":"58.1-423","catch_line":"Income tax paid by commercial spaceflight entities","url":"\/58.1-423\/","token":"58.1\/I\/3\/10\/58.1-423","metadata":false}],"previous_section":{"id":78515,"structure_id":13460,"section_number":"58.1-415","catch_line":"When sales of tangible personal property deemed in the Commonwealth","url":"\/58.1-415\/","token":"58.1\/I\/3\/10\/58.1-415","metadata":false},"next_section":{"id":86205,"structure_id":13460,"section_number":"58.1-417","catch_line":"Motor carriers; apportionment","url":"\/58.1-417\/","token":"58.1\/I\/3\/10\/58.1-417","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-416\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1984, chapter 675; in 2018, chapter 807<\/a>; in 2022, chapters 256<\/a> and 257<\/a>; in 2023, chapters 405<\/a> and 406<\/a>.<\/p>","references":[{"id":84482,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","order_by":null,"url":"\/58.1-422.4\/"},{"id":76648,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","order_by":null,"url":"\/58.1-422.5\/"}],"refers_to":[{"id":54726,"section_number":"58.1-422.3","catch_line":"Debt buyers; apportionment","order_by":null,"url":"\/58.1-422.3\/"},{"id":84482,"section_number":"58.1-422.4","catch_line":"Property information and analytics firms","order_by":null,"url":"\/58.1-422.4\/"},{"id":76648,"section_number":"58.1-422.5","catch_line":"(Contingent effective date \u2014 See Editor's note) Internet root infrastructure providers","order_by":null,"url":"\/58.1-422.5\/"}],"permalink":{"id":253445,"object_type":"law","relational_id":55363,"identifier":"58.1-416","token":"58.1\/I\/3\/10\/58.1-416","url":"\/58.1-416\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-416\/","token":"58.1\/I\/3\/10\/58.1-416","dublin_core":{"Title":"(Contingent effective date \u2014 See Editor’s note) When certain other sales deemed in the Commonwealth","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-416","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Sales<\/span>, other than sales<\/span> of tangible personal property, are in the Commonwealth if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The income-producing activity is performed in the Commonwealth; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The income-producing activity is performed both in and outside the Commonwealth and a greater proportion of the income-producing activity is performed in the Commonwealth than in any other state, based on costs of performance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For debt buyers, as defined in \u00a7 58.1-422.3<\/a>, sales<\/span>, other than sales<\/span> of tangible personal property, are in the Commonwealth if they consist of money recovered on debt that a debt buyer collected from a person who is a resident<\/span> of the Commonwealth or an entity that has its commercial domicile<\/span> in the Commonwealth. Such rule shall apply regardless of the location of a debt buyer’s business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For property information and analytics firms, as defined in § 58.1-422.4<\/a>, that meet the requirements set forth in § 58.1-422.4<\/a>, sales<\/span> of services are in the Commonwealth if they are derived from transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of a property information and analytics firm’s business operations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For Internet root infrastructure providers, as defined in § 58.1-422.5<\/a>, sales<\/span> of services are in the Commonwealth if they are derived from sales<\/span> transactions with a customer or client who receives the benefit of the services in the Commonwealth. Such rule shall apply regardless of the location of an Internet root infrastructure provider’s operations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The taxes under this article on the sales<\/span> described under subsection B are imposed to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law<\/span>. For the collection of such taxes on such sales<\/span>, it is the intent<\/span> of the General Assembly that the Tax Commissioner<\/span> and the Department<\/span> assert the taxpayer<\/span>’s nexus with the Commonwealth to the maximum extent permitted under the Constitutions of Virginia and the United States and federal law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If necessary information is not available to the taxpayer<\/span> to determine whether a sale other than a sale of tangible personal property is in the Commonwealth pursuant to the provisions of subsections B and C, the taxpayer<\/span> may estimate the dollar value or portion of such sale in the Commonwealth, provided that the taxpayer<\/span> can demonstrate to the satisfaction of the Tax Commissioner<\/span> that (i) the estimate has been undertaken in good faith, (ii) the estimate is a reasonable approximation of the dollar value or portion of such sale in the Commonwealth, and (iii) in using an estimate the taxpayer<\/span> did not have as a principal purpose the avoidance of any tax due under this article. The Department<\/span> may implement procedures for obtaining its approval to use an estimate. The Department<\/span> shall adopt remedies and corrective procedures for cases in which the Department<\/span> has determined that the sourcing rules for sales<\/span> other than sales<\/span> of tangible personal property have been abused by the taxpayer<\/span>, which may include reliance on the location of income-producing activity and direct costs of performance as described in subsection A. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(CONTINGENT EFFECTIVE DATE \u2014 SEE EDITOR’S NOTE) WHEN CERTAIN OTHER SALES\nDEEMED IN THE COMMONWEALTH (\u00a7 58.1-416)\n\nA. Sales, other than sales of tangible personal property, are in the\nCommonwealth if:\n\n 1. The income-producing activity is performed in the Commonwealth; or\n\n 2. The income-producing activity is performed both in and outside the\n Commonwealth and a greater proportion of the income-producing activity is\n performed in the Commonwealth than in any other state, based on costs of\n performance.\n\nB. 1. For debt buyers, as defined in \u00a7 58.1-422.3, sales, other than sales of\ntangible personal property, are in the Commonwealth if they consist of money\nrecovered on debt that a debt buyer collected from a person who is a resident of\nthe Commonwealth or an entity that has its commercial domicile in the\nCommonwealth. Such rule shall apply regardless of the location of a debt\nbuyer’s business.\n\n 2. For property information and analytics firms, as defined in §\n 58.1-422.4, that meet the requirements set forth in § 58.1-422.4, sales\n of services are in the Commonwealth if they are derived from transactions with\n a customer or client who receives the benefit of the services in the\n Commonwealth. Such rule shall apply regardless of the location of a property\n information and analytics firm’s business operations.\n\n 3. For Internet root infrastructure providers, as defined in §\n 58.1-422.5, sales of services are in the Commonwealth if they are derived from\n sales transactions with a customer or client who receives the benefit of the\n services in the Commonwealth. Such rule shall apply regardless of the location\n of an Internet root infrastructure provider’s operations.\n\nC. The taxes under this article on the sales described under subsection B are\nimposed to the maximum extent permitted under the Constitutions of Virginia and\nthe United States and federal law. For the collection of such taxes on such\nsales, it is the intent of the General Assembly that the Tax Commissioner and\nthe Department assert the taxpayer’s nexus with the Commonwealth to the\nmaximum extent permitted under the Constitutions of Virginia and the United\nStates and federal law.\n\nD. If necessary information is not available to the taxpayer to determine\nwhether a sale other than a sale of tangible personal property is in the\nCommonwealth pursuant to the provisions of subsections B and C, the taxpayer may\nestimate the dollar value or portion of such sale in the Commonwealth, provided\nthat the taxpayer can demonstrate to the satisfaction of the Tax Commissioner\nthat (i) the estimate has been undertaken in good faith, (ii) the estimate is a\nreasonable approximation of the dollar value or portion of such sale in the\nCommonwealth, and (iii) in using an estimate the taxpayer did not have as a\nprincipal purpose the avoidance of any tax due under this article. The\nDepartment may implement procedures for obtaining its approval to use an\nestimate. The Department shall adopt remedies and corrective procedures for\ncases in which the Department has determined that the sourcing rules for sales\nother than sales of tangible personal property have been abused by the taxpayer,\nwhich may include reliance on the location of income-producing activity and\ndirect costs of performance as described in subsection A.\n\nHISTORY: Code 1950, \u00a7 58-151.049; 1971, Ex. Sess., c. 171; 1984, c. 675; 2018,\nc. 807; 2022, cc. 256, 257; 2023, cc. 405, 406.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}