Vermont Utility Sales Tax Exemption
Virginia provides a sales and use tax exemption on electricity, natural gas, and certain fuels that are used directly in manufacturing, processing, refining, or research and development activities. The exemption applies only to utilities that are an immediate and essential part of production.
Utility Study Requirement
To qualify, businesses must:
- Determine and document which portion of utility usage is directly tied to production.
- Maintain records, engineering studies, or allocation percentages to substantiate exempt versus non-exempt usage.
- Maintain documentation for the Virginia Department of Taxation in the event of an audit.
Filing Requirements
To claim the exemption, businesses must provide the utility supplier with a completed Virginia Sales and Use Tax Exemption Certificate for Manufacturing and Processing (Form ST-11A). If sales tax has already been paid on qualifying utility usage, businesses may file a refund claim directly with the Virginia Department of Taxation. Refunds are generally available for up to three years from the date of payment. Businesses should keep utility bills, exemption certificates, and supporting documentation when filing refund requests.