                                 CODE OF VIRGINIA

GIFT TRANSACTIONS (§ 58.1-604.6)

A. For purposes of this section, a gift transaction means a retail sale
resulting from an order for tangible personal property placed by any means by
any person that is for delivery to a recipient, other than the purchaser,
located in another state. A gift transaction does not include a business
transaction between the purchaser and recipient or a transaction whereby the
purchaser is contractually obligated to provide the tangible personal property
to the recipient.

B. In cases involving a sale qualifying as a gift transaction, a dealer
registered for the collection of the tax in the state of the recipient may, upon
approval by the Tax Commissioner, elect to collect the tax imposed by the state
of the recipient or the tax imposed under this chapter. If the dealer elected to
collect the tax imposed by the state of the recipient, the dealer shall provide
notice of such election to the Tax Department on a form prescribed by the Tax
Department which must be approved by the Tax Commissioner. In the event that the
dealer is not registered for the collection of the tax in the state of the
recipient, and such dealer holds a valid certificate of registration for the
collection of the tax imposed under this chapter, such dealer shall collect the
tax imposed under this chapter.

HISTORY: 2005, c. 355.