{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-623.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-623.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-623.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-623.html"}],"law_id":69079,"edition_id":1,"section_id":69079,"structure_id":12899,"section_number":"58.1-623","catch_line":"Sales or leases presumed subject to tax; exemption certificates","history":"Code 1950, \u00a7 58-441.17; 1966, c. 151; 1984, c. 675; 1999, cc. 762, 776; 2003, cc. 757, 758; 2016, cc. 303, 484; 2017, cc. 112, 453.","full_text":"A\n\nAll sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, lease, or storage of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt under this chapter. However, the sale or distribution of cigarettes shall be subject to the provisions of § 58.1-623.2 and require a cigarette exemption certificate issued pursuant to § 58.1-623.2.B\n\nThe certificate mentioned in this section shall relieve the person who takes such certificate from any liability for the payment or collection of the tax, except upon notice from the Tax Commissioner that such certificate is no longer acceptable. Such certificate shall be signed by and bear the name and address of the taxpayer; shall indicate the number of the certificate of registration, if any, issued to the taxpayer; shall indicate the general character of the tangible personal property sold, distributed, leased, or stored, or to be sold, distributed, leased, or stored under a blanket exemption certificate; and shall be substantially in such form as the Tax Commissioner may prescribe. If an exemption pertains to a nonprofit organization, other than a nonprofit church, that has qualified for a sales and use tax exemption under § 58.1-609.11, the exemption certificate shall be valid until the scheduled expiration date stated on the exemption certificate.C\n\nIf a taxpayer who gives a certificate under this section makes any use of the property other than an exempt use or retention, demonstration, or display while holding the property for resale, distribution, or lease in the regular course of business, such use shall be deemed a taxable sale by the taxpayer as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price of such retail sale. If the sole use of the property other than retention, demonstration, or display in the regular course of business is the rental of the property while holding it for sale, distribution, or lease, the taxpayer may elect to pay the tax on the amount of the rental charged, rather than the cost of the property to him.D\n\nIf a taxpayer gives a certificate under this section with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased, but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales or distributions from the mass of commingled goods shall be deemed to be sales or distributions of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold or distributed.E\n\nIf a taxpayer fails to give the dealer at the time of purchase an exemption certificate previously issued by the Department, no interest shall be paid on a subsequent refund claim for any period prior to the date the taxpayer makes a complete refund claim with the Department. This subsection shall not apply to transactions exempted under self-executing certificates of exemption not issued to a specific taxpayer by the Department.","order_by":null,"text":{"0":{"id":250036,"text":"All sales or leases are subject to the tax until the contrary is established. The burden of proving that a sale, distribution, lease, or storage of tangible personal property is not taxable is upon the dealer unless he takes from the taxpayer a certificate to the effect that the property is exempt under this chapter. However, the sale or distribution of cigarettes shall be subject to the provisions of § 58.1-623.2 and require a cigarette exemption certificate issued pursuant to § 58.1-623.2.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":250037,"text":"The certificate mentioned in this section shall relieve the person who takes such certificate from any liability for the payment or collection of the tax, except upon notice from the Tax Commissioner that such certificate is no longer acceptable. Such certificate shall be signed by and bear the name and address of the taxpayer; shall indicate the number of the certificate of registration, if any, issued to the taxpayer; shall indicate the general character of the tangible personal property sold, distributed, leased, or stored, or to be sold, distributed, leased, or stored under a blanket exemption certificate; and shall be substantially in such form as the Tax Commissioner may prescribe. If an exemption pertains to a nonprofit organization, other than a nonprofit church, that has qualified for a sales and use tax exemption under § 58.1-609.11, the exemption certificate shall be valid until the scheduled expiration date stated on the exemption certificate.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":250038,"text":"If a taxpayer who gives a certificate under this section makes any use of the property other than an exempt use or retention, demonstration, or display while holding the property for resale, distribution, or lease in the regular course of business, such use shall be deemed a taxable sale by the taxpayer as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price of such retail sale. If the sole use of the property other than retention, demonstration, or display in the regular course of business is the rental of the property while holding it for sale, distribution, or lease, the taxpayer may elect to pay the tax on the amount of the rental charged, rather than the cost of the property to him.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":250039,"text":"If a taxpayer gives a certificate under this section with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased, but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales or distributions from the mass of commingled goods shall be deemed to be sales or distributions of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold or distributed.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":250040,"text":"If a taxpayer fails to give the dealer at the time of purchase an exemption certificate previously issued by the Department, no interest shall be paid on a subsequent refund claim for any period prior to the date the taxpayer makes a complete refund claim with the Department. This subsection shall not apply to transactions exempted under self-executing certificates of exemption not issued to a specific taxpayer by the Department.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":12899,"edition_id":1,"name":"Retail Sales and Use Tax","identifier":"6","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:43:59","date_modified":"2026-06-26 03:43:59","permalink":{"id":254543,"object_type":"structure","relational_id":12899,"identifier":"6","token":"58.1\/I\/6","url":"\/58.1\/I\/6\/","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":63208,"structure_id":12899,"section_number":"58.1-600","catch_line":"Short title","url":"\/58.1-600\/","token":"58.1\/I\/6\/58.1-600","metadata":false},{"id":54017,"structure_id":12899,"section_number":"58.1-601","catch_line":"Administration of 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holiday","url":"\/58.1-639.1\/","token":"58.1\/I\/6\/58.1-639.1","metadata":false}],"previous_section":{"id":81287,"structure_id":12899,"section_number":"58.1-622","catch_line":"Discount","url":"\/58.1-622\/","token":"58.1\/I\/6\/58.1-622","metadata":false},"next_section":{"id":68124,"structure_id":12899,"section_number":"58.1-623.01","catch_line":"Online access to dealers' certificate of registration numbers","url":"\/58.1-623.01\/","token":"58.1\/I\/6\/58.1-623.01","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-623\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 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 1966, chapter 151; in 1984, chapter 675; in 1999, chapters 762<\/a> and 776<\/a>; in 2003, chapters 757<\/a> and 758<\/a>; in 2016, chapters 303<\/a> and 484<\/a>; in 2017, chapters 112<\/a> and 453<\/a>.<\/p>","references":[{"id":81400,"section_number":"58.1-609.14","catch_line":"(For contingent expiration date, see Editor's notes) Personal protective equipment exemption","order_by":null,"url":"\/58.1-609.14\/"}],"refers_to":[{"id":64022,"section_number":"58.1-609.11","catch_line":"Exemptions for nonprofit entities","order_by":null,"url":"\/58.1-609.11\/"},{"id":55956,"section_number":"58.1-623.2","catch_line":"Cigarette exemption certificate","order_by":null,"url":"\/58.1-623.2\/"}],"permalink":{"id":254773,"object_type":"law","relational_id":69079,"identifier":"58.1-623","token":"58.1\/I\/6\/58.1-623","url":"\/58.1-623\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-623\/","token":"58.1\/I\/6\/58.1-623","dublin_core":{"Title":"Sales or leases presumed subject to tax; exemption certificates","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-623","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> All sales<\/span> or leases are subject to the tax until the contrary is established. The burden of proving that a sale<\/span>, distribution<\/span>, lease, or storage<\/span> of tangible personal property<\/span> is not taxable is upon the dealer unless he takes from the taxpayer<\/span> a certificate to the effect that the property is exempt under this chapter. However, the sale<\/span> or distribution<\/span> of cigarettes shall be subject to the provisions of § 58.1-623.2<\/a> and require a cigarette exemption certificate issued pursuant to § 58.1-623.2<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The certificate mentioned in this section shall relieve the person<\/span> who takes such certificate from any liability for the payment or collection of the tax, except upon notice from the Tax Commissioner<\/span> that such certificate is no longer acceptable. Such certificate shall be signed by and bear the name and address of the taxpayer<\/span>; shall indicate the number of the certificate of registration, if any, issued to the taxpayer<\/span>; shall indicate the general character of the tangible personal property<\/span> sold, distributed, leased, or stored, or to be sold, distributed, leased, or stored under a blanket exemption certificate; and shall be substantially in such form as the Tax Commissioner<\/span> may prescribe. If an exemption pertains to a nonprofit organization, other than a nonprofit church, that has qualified for a sales<\/span> and use<\/span> tax exemption under § 58.1-609.11<\/a>, the exemption certificate shall be valid until the scheduled expiration date stated on the exemption certificate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If a taxpayer<\/span> who gives a certificate under this section makes any use<\/span> of the property other than an exempt use<\/span> or retention, demonstration, or display while holding the property for resale, distribution<\/span>, or lease in the regular course of business<\/span>, such use<\/span> shall be deemed a taxable sale by the taxpayer<\/span> as of the time the property or service is first used by him, and the cost of the property to him shall be deemed the sales price<\/span> of such retail sale<\/span>. If the sole use<\/span> of the property other than retention, demonstration, or display in the regular course of business<\/span> is the rental of the property while holding it for sale, distribution<\/span>, or lease, the taxpayer<\/span> may elect to pay the tax on the amount of the rental charged, rather than the cost of the property to him. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> If a taxpayer<\/span> gives a certificate under this section with respect to the purchase of fungible goods and thereafter commingles these goods with other fungible goods not so purchased, but of such similarity that the identity of the constituent goods in the commingled mass cannot be determined, sales or distributions<\/span> from the mass of commingled goods shall be deemed to be sales or distributions<\/span> of the goods so purchased until a quantity of commingled goods equal to the quantity of purchased goods so commingled has been sold or distributed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If a taxpayer<\/span> fails to give the dealer at the time of purchase an exemption certificate previously issued by the Department<\/span>, no interest shall be paid on a subsequent refund claim for any period prior to the date the taxpayer<\/span> makes a complete refund claim with the Department<\/span>. This subsection shall not apply to transactions exempted under self-executing certificates of exemption not issued to a specific taxpayer<\/span> by the Department<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSALES OR LEASES PRESUMED SUBJECT TO TAX; EXEMPTION CERTIFICATES (\u00a7 58.1-623)\n\nA. All sales or leases are subject to the tax until the contrary is established.\nThe burden of proving that a sale, distribution, lease, or storage of tangible\npersonal property is not taxable is upon the dealer unless he takes from the\ntaxpayer a certificate to the effect that the property is exempt under this\nchapter. However, the sale or distribution of cigarettes shall be subject to the\nprovisions of § 58.1-623.2 and require a cigarette exemption certificate\nissued pursuant to § 58.1-623.2.\n\nB. The certificate mentioned in this section shall relieve the person who takes\nsuch certificate from any liability for the payment or collection of the tax,\nexcept upon notice from the Tax Commissioner that such certificate is no longer\nacceptable. Such certificate shall be signed by and bear the name and address of\nthe taxpayer; shall indicate the number of the certificate of registration, if\nany, issued to the taxpayer; shall indicate the general character of the\ntangible personal property sold, distributed, leased, or stored, or to be sold,\ndistributed, leased, or stored under a blanket exemption certificate; and shall\nbe substantially in such form as the Tax Commissioner may prescribe. If an\nexemption pertains to a nonprofit organization, other than a nonprofit church,\nthat has qualified for a sales and use tax exemption under § 58.1-609.11,\nthe exemption certificate shall be valid until the scheduled expiration date\nstated on the exemption certificate.\n\nC. If a taxpayer who gives a certificate under this section makes any use of the\nproperty other than an exempt use or retention, demonstration, or display while\nholding the property for resale, distribution, or lease in the regular course of\nbusiness, such use shall be deemed a taxable sale by the taxpayer as of the time\nthe property or service is first used by him, and the cost of the property to\nhim shall be deemed the sales price of such retail sale. If the sole use of the\nproperty other than retention, demonstration, or display in the regular course\nof business is the rental of the property while holding it for sale,\ndistribution, or lease, the taxpayer may elect to pay the tax on the amount of\nthe rental charged, rather than the cost of the property to him.\n\nD. If a taxpayer gives a certificate under this section with respect to the\npurchase of fungible goods and thereafter commingles these goods with other\nfungible goods not so purchased, but of such similarity that the identity of the\nconstituent goods in the commingled mass cannot be determined, sales or\ndistributions from the mass of commingled goods shall be deemed to be sales or\ndistributions of the goods so purchased until a quantity of commingled goods\nequal to the quantity of purchased goods so commingled has been sold or\ndistributed.\n\nE. If a taxpayer fails to give the dealer at the time of purchase an exemption\ncertificate previously issued by the Department, no interest shall be paid on a\nsubsequent refund claim for any period prior to the date the taxpayer makes a\ncomplete refund claim with the Department. This subsection shall not apply to\ntransactions exempted under self-executing certificates of exemption not issued\nto a specific taxpayer by the Department.\n\nHISTORY: Code 1950, \u00a7 58-441.17; 1966, c. 151; 1984, c. 675; 1999, cc. 762,\n776; 2003, cc. 757, 758; 2016, cc. 303, 484; 2017, cc. 112, 453.","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}}