For the purposes of the tax, an aircraft is any device that can fly more than 24 inches above the ground when operated by 1 or more people. This includes inoperable aircraft, as well as aircraft kits. Parachutes, hang gliders, and the like are not considered aircraft.
If you move your aircraft outside of Virginia within 60 days of purchasing it, you do not owe aircraft sales and use tax.
For a current list of exemptions to aircraft sales and use tax, please see Va. Code § 58.1-1505.
People and businesses who purchase aircraft in Virginia owe the tax. Also, anyone who stores their aircraft in Virginia for more than 90 days in a calendar year owes the tax.
Commercial aircraft dealers, licensed by the Department of Aviation (DOAV), can choose to be taxed on the gross receipts from leasing, chartering or other uses of their aircraft, rather than pay the tax on each individual plane they purchase. To make this election, you must notify Virginia Tax in writing before registering for the tax.
Individual Purchasers
Individuals who purchase an aircraft are not required to register for aircraft sales and use tax with Virginia Tax. See How to file and pay, below, for information about filing your aircraft sales and use tax return.
Commercial Dealers
Commercial aircraft dealers who choose to be taxed on gross receipts from leasing, chartering and other uses are required to register with Virginia Tax.
Commercial dealers who do not make this election should follow the same procedure as individual purchasers to file and pay the tax on each aircraft they buy.
Individual Purchasers
File Form AST-3, Aircraft Sales and Use Tax Return, before licensing your aircraft with DOAV. We will let DOAV know that you’ve paid the tax, so they can issue your license.
Please visit the DOAV website for information about licensing your aircraft.
Dealer Returns
File Form AST-2, Dealer's Aircraft Sales and Use Tax Return, monthly. Returns and payments are due on or before the 20th day of the month following the month in which the transactions occurred.
For more information refer to Va. Code §§ 58.1-1500 through 1510.
The maximum watercraft tax for any transaction is $2,000.
Not included in the definition of “watercraft” (for the purpose of this tax):
Individuals who purchase watercraft are responsible for the watercraft sales and use tax.
Watercraft dealers are exempt from this tax on vessels purchased for resale (unless you elect to collect it on behalf of your customers,) or on vessels purchased for charter, lease or other compensatory use. Instead, dealers are responsible for the tax on the gross receipts from operating these vessels for charter, etc.
All transactions subject to the watercraft sales and use tax are exempt from the retail sales and use tax. Seaplanes are subject to the aircraft sales and use tax.
For an updated list of exemptions to the watercraft tax, please refer to Va. Code § 58.1-1404.
Individual Purchasers
Individuals who purchase a watercraft are not required to register for watercraft sales and use tax with Virginia Tax. See "How to file and pay," below, for information about filing your watercraft sales and use tax return.
Please visit the DWR website for information about registering your watercraft.
Watercraft Dealers
Dealers are required to register with Virginia Tax.
Individual Purchasers
File the Form WCT-3A, Individual Watercraft Tax Worksheet before titling your watercraft with DWR. You are required to be title your watercraft before you can operate it in Virginia. Pay the tax to either Virginia Tax or DWR. If you purchase the watercraft from a dealer authorized by agreement to collect the tax, it may be paid to the dealer.
Dealer Returns
File Form WCT-2, Dealer's Monthly Return of Watercraft Sales and Use Tax monthly. Returns and payments are due on or before the 20th day of the month following the month in which the transactions occurred. The return will show gross receipts from compensatory use of watercraft. The return may also include gross receipts from sales if authorized by agreement with Virginia Tax to collect watercraft tax on behalf of your customers.
For additional information please refer to Va. Code §§58.1-1400 through 58.1-1410.