23 Va. Admin. Code § 10-210-760
Generally, any person producing a "high technology" or technologically innovative product, including systems, for sale or resale is entitled to the industrial manufacturing exemptions set forth in 23VAC10-210-920. In addition, a person engaged in basic research or research and development activities in the experimental or laboratory sense which have as their ultimate goal the advancement of technology, the development of new products or processes, or the improvement of existing products or processes is generally entitled to the research exemption set forth in 23VAC10-210-3070 through 23VAC10-210-3074. Sales of tangible personal property by a high technology business are generally subject to the sales tax unless the seller takes from the purchaser a valid certificate of exemption. As set forth in 23VAC10-160-4040, some transactions which involve both the provision of personal services and the sale of tangible personal property are not subject to the tax. Purely service transactions which do not involve a transfer of tangible personal property are also not subject to the tax.
High technology businesses already located or planning to locate in Virginia are encouraged to request rulings from the Tax Commissioner in order to clarify the exemptions available to them under the Virginia Retail Sales and Use Tax Act.
23 Va. Admin. Code § 10-210-760
Statutory Authority
§§ 58.1-203, 58.1-609.5(6) and 58.1-609.5(7) of the Code of Virginia.