A Virginia bill of sale form or other acceptable proof of purchase is a requirement to title vehicles with the Department of Motor Vehicles (DMV) in the state. However, a vehicle bill of sale simplifies the motor vehicle buying or selling process, since it contains a wealth of information easily downloaded online. A bill of sale can be used when calculating sales and use taxes (SUT) on automobiles purchased within the previous year. To get started, residents can get a comprehensive VA bill of sale package online. Learn more about using a Virginia bill of sale contract during the car buying or selling process to get started.
When to Use a Bill of Sale Form in Virginia
A Virginia bill of sale is one of the acceptable forms of proof of purchase for satisfying requirements for titling a vehicle in the state. Bill of sale contracts or proof of a vehicle’s purchase price are needed when titling vehicles older than five years of age and when obtaining a title for a vehicle purchased within the previous 12 months. However, VA bill of sale forms or proof of a vehicle’s purchase price are not a requirement when titling vehicles purchased more than 12 months prior.
Additionally, a motorcycle bill of sale or a standard vehicle bill of sale is not a requirement when titling new vehicles or motorcycles under five years of age. Rather than submitting a VA bill of sale agreement when titling a new vehicle in the state, car buyers must submit proof of the vehicle’s purchase price in the form of a Manufacturer’s Certificate of Origin (MCO) or Statement of Origin (MSO), in addition to an Application for Certificate of Title and Registration. However, drivers must submit a standard bill of sale document, buyer’s order or handwritten statement when titling newly-acquired vehicles five years of age or older. To obtain a bill of sale online, motorists can get a full bill of sale package here.
In addition to submitting a Virginia bill of sale contract or other proof of purchase price, customers must submit the following documents when titling a new or used vehicle with the DMV:
- Title and registration application
- Proof of address, such as a payroll check stub or mortgage statement
- An out-of- state vehicle registration card or title, if applicable
Additionally, a bill of sale for car purchases is often needed when calculating Motor Vehicle Sales and Use Tax on an automobile. However, bill of sale contracts are only needed to calculate use tax on vehicles older than five years of age, while an Affidavit for Procurement of Title is a requirement to calculate SUT on cars newer than five years of age. Since a used car bill of sale displays the purchase price of a vehicle, a Virginia bill of sale document or an Affidavit for Procurement of Title is needed to calculate use tax based on the car’s gross sales price, unless car owners are exempt from paying SUT. Unless exempt from paying SUT, motorists can get a comprehensive bill of sale packet online here. If exempt from paying SUT, then motorists must submit proof of their exemption status or a Purchaser’s Statement of Tax Exemption when titling the vehicle
Virginia Bills of Sale Requirements
Although official bill of sale forms are not a requirement to title a car in Virginia, any document displaying the purchase price of an automobile must include specific information about it, as well as the signatures of both the buyer and seller. For example, standard Virginia bill of sale agreements must include the following information:
- The date and signatures of the vehicle’s buyer and seller
- The purchase price of the vehicle and the date of the sale
- The vehicle’s make, model, year, color and body type
- The vehicle identification number (VIN)
If motorists do not use a Virginia bill of sale form when titling a used vehicle acquired within the past 12 months, then they must submit a buyer’s order or handwritten statement or the seller must declare the vehicle’s sale price on the title certificate. If drivers wish to submit a DMV bill of sale or retain a bill of sales document for their records, then they may get a bill of sale package here.
Virginia Bill of Sale Agreement Benefits
While a used car bill of sale is not the only document that drivers may use to prove a vehicle’s purchase price in Virginia, it is the most comprehensive. A Virginia DMV bill of sales form can help to simplify the car buying or selling process, even if the DMV does not require it. Additionally, bill of sale documents help protect the vehicle’s buyer and seller after the sale of the automobile. As such, a vehicle bill of sale form protects car buyers or sellers in the event of a legal issue, as a bill of sale shows the final sale price of the vehicle, the date of the transaction and the signatures of both parties involved. A VA bill of sale contract does not serve as proof of vehicle ownership, but it does show that a transaction occurred, in addition to the names of the vehicle’s previous and current owner. For this reason, it is a good idea to complete a bill of sale template regardless of whether the state requires it or not. Motorists can get a complete package for a bill of sale online here.