Certain Retailers Responsible for Paying Tax on Items They Install

Monday, July 10th, 2017

 
 
A retailer installing blinds.
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Virginia
Retail

Effective July 1, 2017, Virginia enacted a new law requiring certain retailers providing installation services to pay tax on the items they install.

Previously, Virginia required retailers that sell and install fences, venetian blinds, window shades, awnings, storm windows and doors, floor coverings, cabinets, countertops, kitchen equipment, window air conditioning units, or similar items to collect sales tax from their customers. The retailers would purchase these items tax-free for resale. Contractors, however, paid tax on the items and did not collect tax from customers.

The new law treats retailers the same as contractors for these installations. Both retailers and contractors must either pay sales tax when they buy the items or pay use tax when they install the items.

https://tax.virginia.gov/sites/default/files/inline-files/tb-17-8-real-property-contractors-sales-tax-guidelines.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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