Virginia: Tax on shop supplies, MVDB Internet Task Force

Virginia: Tax on shop supplies, MVDB Internet Task Force

WANADA advisor on Virginia matters, Mike Charapp, Charapp & Weiss, LLP, focused on two areas affecting dealers in Virginia: A new sales tax on shop supplies and the actions of the state Motor Vehicle Dealer Board (MVDB).

Starting July 1, automobile repair shops will be authorized to buy eligible supplies exempt from the tax, but will be required to collect the tax on any separately stated charge billed to the customer for supplies used during auto repair. That means Virginia dealers will have to collect retail sales tax on shop supply charges.

Virginiaês Motor Vehicle Dealer Board is reviewing the Internet Task Force report that has been the basis for much of the boardês policy for a decade. The task force is a consumer protection tool against internet brokers, unlicensed retailers and the like. Its findings will eventually be a roadmap for Board policy on many new methods of doing business in Virginia.