58.1-604.6 - Gift transactions. - Virginia Statutes

§ 58.1-604.6. Gift transactions.

A. For purposes of this section, a gift transaction means a retail saleresulting from an order for tangible personal property placed by any means byany person that is for delivery to a recipient, other than the purchaser,located in another state. A gift transaction does not include a businesstransaction between the purchaser and recipient or a transaction whereby thepurchaser is contractually obligated to provide the tangible personalproperty to the recipient.

B. In cases involving a sale qualifying as a gift transaction, a dealerregistered for the collection of the tax in the state of the recipient may,upon approval by the Tax Commissioner, elect to collect the tax imposed bythe state of the recipient or the tax imposed under this chapter. If thedealer elected to collect the tax imposed by the state of the recipient, thedealer shall provide notice of such election to the Tax Department on a formprescribed by the Tax Department which must be approved by the TaxCommissioner. In the event that the dealer is not registered for thecollection of the tax in the state of the recipient, and such dealer holds avalid certificate of registration for the collection of the tax imposed underthis chapter, such dealer shall collect the tax imposed under this chapter.

(2005, c. 355.)