Ezel / Tax Rulings / VA
VA P.D. 17-69 Cigarette Tax 2017-05-15

What resale exemption certificate did Virginia Tax Bulletin 17-4 require for purchases of stamped cigarettes beginning January 1, 2018?

Short answer: Beginning January 1, 2018, a retailer purchasing Virginia-stamped cigarettes for resale had to use a Department-issued Form ST-10 C Cigarette Resale Exemption Certificate. The certificate was unique to each retailer and could not simply be downloaded. Until January 1, 2018, wholesalers could accept either the existing Form ST-10 or the new ST-10 C. Qualifying retailers were to receive an expedited certificate by October 1, 2017; others had to apply.

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This page answers the general question as of 2017. Ezel answers yours, under current Virginia tax law, with citations.

Currency note: this ruling is from 2017
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is official Virginia Tax Bulletin 17-4, a Department-issued general notice rather than a ruling on one taxpayer's facts. It describes the cigarette resale-certificate transition announced in 2017 for a January 1, 2018 effective date. Forms, eligibility rules, and application procedures may have changed; confirm current Department requirements before purchasing stamped cigarettes for resale. This summary is informational only and is not legal or tax advice. Consult a licensed Virginia tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Virginia Tax Bulletin 17-4 announced a new Department-issued resale certificate for retailers buying cigarettes that already bore Virginia revenue stamps.

Beginning January 1, 2018, those resale purchases required Form ST-10 C, Cigarette Resale Exemption Certificate. Unlike the ordinary Form ST-10, the new certificate was issued by the Department and was unique to each retailer.

During the transition through December 31, 2017, cigarette wholesalers could accept either Form ST-10 or Form ST-10 C. The Department planned to identify qualifying retailers for an expedited process and mail their certificates by October 1, 2017. A retailer that did not receive one by that date was directed to complete the Department's application.

Common questions

Could a retailer download and complete its own ST-10 C? No. The bulletin said the Department would issue a unique certificate to each retailer.

What applied before January 1, 2018? Wholesalers could accept either the existing ST-10 resale certificate or the new ST-10 C.

Are these still the current application instructions? The bulletin reports a 2017 transition for 2018; current procedures must be confirmed separately.

Citations and references

  • House Bill 1913 and Senate Bill 1390
  • 2017 Acts of Assembly, Chapters 112 and 453

Subject

DEPARTMENT-ISSUED EXEMPTION CERTIFICATES REQUIRED BEGINNING JANUARY 1, 2018

Source

Original ruling text

TAX BULLETIN 17-4

Virginia Department of Taxation

May 15, 2017

IMPORTANT INFORMATION REGARDING

NEW SALES TAX EXEMPTION CERTIFICATE REQUIRED FOR PURCHASE OF STAMPED CIGARETTES FOR RESALE

DEPARTMENT-ISSUED EXEMPTION CERTIFICATES REQUIRED BEGINNING JANUARY 1, 2018

House Bill 1913 and Senate Bill 1390 (2017 Acts of Assembly , Chapters 112 and 453) require the use of a newly created Department-issued exemption certificate to purchase cigarettes bearing Virginia revenue stamps for resale exempt from the Retail Sales and Use Tax beginning January 1, 2018 . Until that date, wholesale sellers of cigarettes should continue to accept either the existing Form ST-10 Resale Exemption Certificate or the new Form ST-10 C Cigarette Resale Exemption Certificate.

The new law requires the Department of Taxation (“Department”) to set up an application process whereby retailers must apply to the Department for the new exemption certificate. Unlike the existing Form ST-10 Resale Exemption Certificate that may be downloaded from the Department’s website, the new Form ST-10 C Cigarette Resale Exemption Certificate will be issued by the Department and will be unique to each retailer. Taxpayers who meet certain criteria will go through an expedited process with no application fee, waiting period, or background investigation. The Department is in the process of developing guidelines regarding the new application process and the new exemption certificate.

The Department will identify those retailers who qualify for the expedited process and who do not need to apply for the new exemption certificate. Those retailers who qualify for the expedited process will be mailed the new exemption certificate no later than October 1, 2017. If a retailer does not receive the Department-issued exemption certificate by October 1, the retailer should complete the application for a Department-issued exemption certificate, which will be available on the Department’s website, www.tax.virginia.gov , by October 1, 2017.

The Department has established a website where all updates and information about this new exemption certificate process will be posted: www.tax.virginia.gov/guidelines-cigarette-resale-exemption-certificate .

If you have any questions regarding this Tax Bulletin, please contact the Department at (804) 367-8037.

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