                                 CODE OF VIRGINIA

CERTAIN RECORDS REQUIRED OF DISTRIBUTOR; ACCESS TO PREMISES (§ 58.1-1021.04:2)

A. Each distributor or remote retail seller shall keep in each licensed place of
business complete and accurate records for that place of business, including
itemized invoices of: (i) tobacco products held, purchased, manufactured,
brought in or caused to be brought in from outside the Commonwealth, or shipped
or transported to retailers in the Commonwealth; (ii) all sales of tobacco
products made; (iii) all tobacco products, including cigars and pipe tobacco,
transferred to other retail outlets owned or controlled by that licensed
distributor or remote retail seller; and (iv) any records required by the
Department.
			All books, records and other papers and documents required by this subsection
to be kept shall be preserved, in a form prescribed by the Department, for a
period of at least three years after the date of the documents or the date of
the entries thereof appearing in the records, unless the Department authorizes,
in writing, their destruction or disposal at an earlier date.

B. At any time during usual business hours, duly authorized agents or employees
of the Department may enter any place of business of a distributor and inspect
the premises, the records required to be kept under this article and the tobacco
products contained therein, to determine whether all the provisions of this
article are being complied with fully. Refusal to permit such inspection by a
duly authorized agent or employee of the Department shall be grounds for
revocation of the license.

C. Each person who sells tobacco products to persons other than an ultimate
consumer shall render with each sale itemized invoices showing the
seller&#8217;s name and address, the purchaser&#8217;s name and address, the
date of sale and all prices. Such person shall preserve legible copies of all
such invoices for three years after the date of sale.

D. Each distributor or remote retail seller shall procure itemized invoices of
all tobacco products purchased. The invoices shall show the name and address of
the seller and the date of purchase. The distributor or remote retail seller
shall preserve a legible copy of each invoice for three years after the date of
purchase. Invoices shall be available for inspection by authorized agents or
employees of the Department at the distributor&#8217;s place of business or
remote retail seller&#8217;s place of business. If the remote retail seller
cannot produce the required invoice information and the excise tax is being
remitted using the actual cost list method to calculate the excise tax, the
remote retail seller shall provide the remote retail seller&#8217;s certified
actual cost list to the Department for each SKU to be offered for remote retail
sale in the subsequent calendar year. The actual cost list shall be updated
quarterly as new SKUs are added to a remote retail seller&#8217;s inventory. New
SKUs will be added using the actual cost first paid for the SKU. This method
shall not be used unless the actual cost list has been filed with the Department
for the previous calendar year.

E. Any violation of &#xA7; 58.1-1021.04:1, 58.1-1021.04:2, 58.1-1021.04:3, or
58.1-1021.04:4 of this article shall be grounds for revocation of the license.

HISTORY: 2005, c. 71; 2022, cc. 738, 779.