Manufacturing Exemption: Testing Equipment in Virginia Eligible for Sales Tax Refund

• Taxpayer entitled to refund for paid sales and use tax on testing equipment in Virginia
• Tax Commissioner determined taxpayer eligible for manufacturing exemption
• Testing equipment used within manufacturing process exempt from sales and use tax
• Equipment involved in production line testing or quality control exempt
• Equipment used for testing finished products not exempt
• Taxpayer proved testing occurred before products were packaged and labeled
• Importance of detailed record-keeping and documentation highlighted
• Taxpayer entitled to refund due to proving testing equipment used in manufacturing process

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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