                                 CODE OF VIRGINIA

TAX COLLECTIBLE FROM DEALERS; &#8220;DEALER&#8221; DEFINED; JURISDICTION (§
58.1-612)

A. The tax levied by &#xA7;&#xA7; 58.1-603 and 58.1-604 shall be collectible
from all persons that are dealers, as defined in this section, and that have
sufficient contact with the Commonwealth to qualify under (i) subsections B and
C or (ii) subsections B and D.

B. As used in this chapter, &#8220;dealer&#8221; includes every person that:

   1. Manufactures or produces tangible personal property for sale at retail, for
   use, consumption, or distribution, or for storage to be used or consumed in
   this Commonwealth;

   2. Imports or causes to be imported into this Commonwealth tangible personal
   property from any state or foreign country, for sale at retail, for use,
   consumption, or distribution, or for storage to be used or consumed in this
   Commonwealth;

   3. Sells at retail, or that offers for sale at retail, or that has in its
   possession for sale at retail, or for use, consumption, or distribution, or
   for storage to be used or consumed in this Commonwealth, tangible personal
   property;

   4. Has sold at retail, used, consumed, distributed, or stored for use or
   consumption in this Commonwealth, tangible personal property and that cannot
   prove that the tax levied by this chapter has been paid on the sale at retail,
   the use, consumption, distribution, or storage of such tangible personal
   property;

   5. Leases or rents tangible personal property for a consideration, permitting
   the use or possession of such property without transferring title thereto;

   6. Is the lessee or rentee of tangible personal property and that pays to the
   owner of such property a consideration for the use or possession of such
   property without acquiring title thereto;

   7. As a representative, agent, or solicitor, of an out-of-state principal,
   solicits, receives and accepts orders from persons in this Commonwealth for
   future delivery and whose principal refuses to register as a dealer under
   &#xA7; 58.1-613; or

   8. Becomes liable to and owes this Commonwealth any amount of tax imposed by
   this chapter, whether it holds, or is required to hold, a certificate of
   registration under &#xA7; 58.1-613.

C. A dealer shall be deemed to have sufficient activity within the Commonwealth
to require registration under § 58.1-613 if it:

   1. Maintains or has within this Commonwealth, directly or through an agent or
   subsidiary, an office, warehouse, or place of business of any nature;

   2. Solicits business in this Commonwealth by employees, independent
   contractors, agents or other representatives;

   3. Advertises in newspapers or other periodicals printed and published within
   this Commonwealth, on billboards or posters located in this Commonwealth, or
   through materials distributed in this Commonwealth by means other than the
   United States mail;

   4. Makes regular deliveries of tangible personal property within this
   Commonwealth by means other than common carrier. A person shall be deemed to
   be making regular deliveries hereunder if vehicles other than those operated
   by a common carrier enter this Commonwealth more than 12 times during a
   calendar year to deliver goods sold by him;

   5. Solicits business in this Commonwealth on a continuous, regular, seasonal,
   or systematic basis by means of advertising that is broadcast or relayed from
   a transmitter within this Commonwealth or distributed from a location within
   this Commonwealth;

   6. Solicits business in this Commonwealth by mail, if the solicitations are
   continuous, regular, seasonal, or systematic and if the dealer benefits from
   any banking, financing, debt collection, or marketing activities occurring in
   this Commonwealth or benefits from the location in this Commonwealth of
   authorized installation, servicing, or repair facilities;

   7. Is owned or controlled by the same interests which own or control a
   business located within this Commonwealth;

   8. Has a franchisee or licensee operating under the same trade name in this
   Commonwealth if the franchisee or licensee is required to obtain a certificate
   of registration under &#xA7; 58.1-613;

   9. Owns tangible personal property that is for sale located in this
   Commonwealth, or that is rented or leased to a consumer in this Commonwealth,
   or offers tangible personal property, on approval, to consumers in this
   Commonwealth;

   10. Receives more than $100,000 in gross revenue, or other minimum amount as
   may be required by federal law, from retail sales in the Commonwealth in the
   previous or current calendar year, provided that in determining the amount of
   a dealer&#8217;s gross revenues, the sales made by all commonly controlled
   persons as defined in subsection D shall be aggregated; or

   11. Engages in 200 or more separate retail sales transactions, or other
   minimum amount as may be required by federal law, in the Commonwealth in the
   previous or current calendar year, provided that in determining the total
   number of a dealer&#8217;s retail sales transactions, the sales made by all
   commonly controlled persons as defined in subsection D shall be aggregated.

D. A dealer is presumed to have sufficient activity within the Commonwealth to
require registration under &#xA7; 58.1-613 (unless the presumption is rebutted
as provided herein) if any commonly controlled person maintains a distribution
center, warehouse, fulfillment center, office, or similar location within the
Commonwealth that facilitates the delivery of tangible personal property sold by
the dealer to its customers. The presumption in this subsection may be rebutted
by demonstrating that the activities conducted by the commonly controlled person
in the Commonwealth are not significantly associated with the dealer&#8217;s
ability to establish or maintain a market in the Commonwealth for the
dealer&#8217;s sales. For purposes of this subsection, a &#8220;commonly
controlled person&#8221; means any person that is a member of the same
&#8220;controlled group of corporations,&#8221; as defined in &#xA7; 1563(a) of
the Internal Revenue Code of 1954, as amended or renumbered, as the dealer or
any other entity that, notwithstanding its form of organization, bears the same
ownership relationship to the dealer as a corporation that is a member of the
same &#8220;controlled group of corporations,&#8221; as defined in &#xA7;
1563(a) of the Internal Revenue Code of 1954, as amended or renumbered.

E. Notwithstanding any other provision of this section, the following shall not
be considered to determine whether a person that has contracted with a
commercial printer for printing in the Commonwealth is a &#8220;dealer&#8221;
and whether such person has sufficient contact with the Commonwealth to be
required to register under § 58.1-613:

   1. The ownership or leasing by that person of tangible or intangible property
   located at the Virginia premises of the commercial printer which is used
   solely in connection with the printing contract with the person;

   2. The sale by that person of property of any kind printed at and shipped or
   distributed from the Virginia premises of the commercial printer;

   3. Activities in connection with the printing contract with the person
   performed by or on behalf of that person at the Virginia premises of the
   commercial printer; and

   4. Activities in connection with the printing contract with the person
   performed by the commercial printer within Virginia for or on behalf of that
   person.

F. In addition to the jurisdictional standards contained in subsections C and D,
nothing contained in this chapter other than in subsection E shall limit any
authority that this Commonwealth may enjoy under the provisions of federal law
or an opinion of the United States Supreme Court to require the collection of
sales and use taxes by any dealer that regularly or systematically solicits
sales within this Commonwealth. Furthermore, nothing contained in subsection C
shall require any broadcaster, printer, outdoor advertising firm, advertising
distributor, or publisher which broadcasts, publishes, or displays or
distributes paid commercial advertising in this Commonwealth which is intended
to be disseminated primarily to consumers located in this Commonwealth to report
or impose any liability to pay any tax imposed under this chapter solely because
such broadcaster, printer, outdoor advertising firm, advertising distributor, or
publisher accepted such advertising contracts from out-of-state advertisers or
sellers.

HISTORY: Code 1950, § 58-441.12; 1966, c. 151; 1979, c. 573; 1984, c. 675;
1991, cc. 544, 565; 1995, c. 27; 2012, c. 590; 2013, c. 766; 2017, cc. 51, 808;
2019, cc. 815, 816, 854.