Virginia Code

Va. Code Ann. § 58.1-609.5 (2026)

Service exemptions

✓ current as of May 2026

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The tax imposed by this chapter or pursuant to the authority granted in § 58.1-605 or 58.1-606 shall not apply to the following:

1. Professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made; services rendered by repairmen for which a separate charge is made; and services not involving an exchange of tangible personal property which provide access to or use of the Internet and any other related electronic communication service, including software, data, content and other information services delivered electronically via the Internet.

2. An amount separately charged for labor or services rendered in installing, applying, remodeling, or repairing property sold or rented.

3. Transportation charges separately stated.

4. Separately stated charges for alterations to apparel, clothing and garments.

5. Charges for gift wrapping services performed by a nonprofit organization.

6. An amount separately charged for labor or services rendered in connection with the modification of prewritten programs as defined in § 58.1-602.

7. Custom programs as defined in § 58.1-602.

8. An amount separately charged for labor rendered in connection with diagnostic work for automotive repair and emergency roadside service for motor vehicles, as defined by § 46.2-100, regardless of whether there is a sale of a repair or replacement part or a shop supply charge.

9. The sale or charges for any room or rooms, lodgings, or accommodations furnished to transients for more than 90 continuous days by any hotel, motel, inn, tourist camp, tourist cabin, camping grounds, club, or any other place in which rooms, lodging, space or accommodations are regularly furnished to transients for a consideration.

10. Beginning January 1, 1996, maintenance contracts, the terms of which provide for both repair or replacement parts and repair labor, shall be subject to tax upon one-half of the total charge for such contracts only. Persons providing maintenance pursuant to such a contract may purchase repair or replacement parts under a resale certificate of exemption. Warranty plans issued by an insurance company, which constitute insurance transactions, are subject to the provisions of subdivision 1 above.

1993, c. 310; 1994, c. 595; 1998, c. 481; 2004, c. 607; 2006, c. 474; 2013, c. 90; 2023, c. 35.

Notes of Decisions

Cited in 2 cases, 2005–2006 · leading case: LZM, INC. v. Virginia Dept. of Taxation, 606 S.E.2d 797 (Va. 2005).

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LZM, INC. v. Virginia Dept. of Taxation, 606 S.E.2d 797 (Va. 2005). · cites it 4× “Code § 58.1-609.5. In the case at bar, LZM agrees that the gross proceeds of its lease fees for portable toilets are subject to sales tax, but maintains that fees received for toilet pumping services are charges for distinct services and are therefore not subject to tax.”

Intersections, Inc. v. Virginia Dep't of Taxation, 72 Va. Cir. 234 (Fairfax Cir. Ct. 2006). · cites it 5× “” Va. Code § 58.1-609.5(1) (2001). Transactions involving both tangible property and services are taxed in toto as either an exempt service or as taxable property according to whether the service or property is the “true object” of the transaction.”

— Va. Code Ann. § 58.1-609.5(1) — 1 case

Intersections, Inc. v. Virginia Dep't of Taxation, 72 Va. Cir. 234 (Fairfax Cir. Ct. 2006). “” Va. Code § 58.1-609.5(1) (2001). Transactions involving both tangible property and services are taxed in toto as either an exempt service or as taxable property according to whether the service or property is the “true object” of the transaction.”

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