Bill of Sale Requirements in Virginia
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A bill of sale is not required when purchasing and selling a car in Virginia. However, you can benefit from having a bill of sale, especially when you are required to show proof of purchase price. Keep reading to learn more about Virginia bills of sale.
VA Bill of Sale
When titling and registering your motor vehicle in Virginia, you must show proof of its purchase price. Though it is not required, in some scenarios you may use a generic bill of sale to fulfill this purpose. One reason is so the Department of Motor Vehicles (DMV) can calculate the 4.15% sales and use tax you will owe. If you cannot prove the price, and you owe taxes, you will be taxed according to the official NADA trade-in value.
When you buy your vehicle from an individual, you'll need some sort of proof of the purchase price when you transfer the title to your name. This can either be written on the title, a Vehicle Price Certification (Bill of Sale) (Form SUT 1), or a generic bill of sale.
Bill of Sale Specifics in Virginia
Proof of the purchase price may include a buyer's order, a bill of sale, or the sale price that the seller declares on the certificate of title. This is required if your vehicle was purchased from a private seller and the vehicle is 5 years old or older. You can use a handwritten statement as a bill of sale, as long as the seller and buyer both sign it. The DMV will also accept a Vehicle Price Certification (Bill of Sale) (Form SUT 1), signed by you and the seller.
If you use a handwritten or generic bill of sale, include the following information:
- Final sales price.
- Names and signatures for both the buyer and seller.
- Contact information for both the buyer and seller.
- Full vehicle description.
- Vehicle identification number (VIN)
- Date of the sale.
Generic Bill of Sale
To assist you in finding a form, we provide a free, printable bill of sale form.
Vehicle Price Certification
Certify the purchase price of a recent model year vehicle when applying for a Virginia title with the Department of Motor Vehicles.
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