Virginia Affiliate Nexus Law Becomes Effective September 1, 2013

Virginia has issued a bulletin regarding previously enacted affiliate nexus legislation that becomes effective September 1, 2013. To view our previous news item on the legislation, click here. Under the legislation, a dealer is presumed to have nexus in Virginia if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location in Virginia that facilitates the delivery of tangible personal property sold by the dealer to its customers. Dealers may rebut the presumption if they can demonstrate that the commonly controlled person’s activities in Virginia are not significantly associated with the dealer’s ability to establish or maintain a market in Virginia. The legislation provided that it is effective on the earlier of September 1, 2013 or upon passage of federal legislation granting states the authority to require remote sellers to collect taxes on goods shipped to in-state purchasers. As federal legislation has not been enacted, the effective date for the legislation is September 1, 2013. All affected out-of-state dealers must begin collecting sales and use taxes on sales made into Virginia on September 1, 2013. (Tax Bulletin 13-11, Virginia Department of Taxation, August 22, 2013)

Posted on September 16, 2013