Effective July 1, 2017, automobile repair shops will be allowed to purchase eligible supplies tax exempt in Virginia.
The Virginia General Assembly enacted a bill that will change how tax applies to shop supplies for automobile repair shops. Currently, shops must pay tax on all shop supplies for automobile repairs. The law change will allow shops to purchase certain supplies tax exempt if the shops will charge customers separately for the supplies. The shops will have to collect tax on any separately stated charge billed to customers for the supplies.
This is a change in long-standing policy, and the state will issue more guidance before the law change takes effect.