Retail Sales and Use Tax | Virginia Tax

In general, all sales, leases, and rentals of real personal place in or for use in Virginia, equally well as accommodations and certain taxable services, are subject to Virginia sales and use tax, unless an exemption or exception is established .

Sales Tax Rates

To look up a rate for a specific address, or in a specific city or county in Virginia, use our sales tax rate lookup. 
The sales tax rate for most locations in Virginia is 5.3%. several areas have an extra regional or local tax as outlined below. In all of Virginia, food for home consumption ( e.g. grocery items ) and  certain essential personal hygiene items are taxed at a deoxidize rate of 2.5 % .

General Sales Tax Rate In these locations
  • James City County
  • Williamsburg
  • York County
  • Charlotte County
  • Gloucester County
  • Halifax County
  • Henry County
  • Northampton County
  • Patrick County
  • Central Virginia 
    Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent, Powhatan, and Richmond City
  • Hampton Roads 
    Chesapeake, Franklin, Hampton, Isle of Wight, Newport News, Norfolk, Poquoson, Portsmouth, Southampton, Suffolk, and Virginia Beach
  • Northern Virginia 
    Alexandria, Arlington, Fairfax City, Fairfax County, Falls Church, Loudoun, Manassas, Manassas Park, and Prince William
5.3% Everywhere else
Food & Personal Hygiene Items  
2.5% Statewide

Beginning July 1, 2022, the general sales tax pace will increase to 6.3 % in Danville.

Sales of aircraft, watercraft, and motive vehicles are taxed at different rates than those listed above. For more information about the centrifugal vehicle sales tax, visit the Department of Motor Vehicles .

Do you need to register to collect sales tax?

If you sell, lease, distribute, or lease palpable personal place to customers in Virginia, or otherwise meet the definition of a “ trader, ” and have “ sufficient action ” in Virginia, you have nexus as defined in Va. Code § 58.1-612, and must register to collect and pay sales tax in Virginia .

  • In-state dealers: generally individuals and businesses making sales with, or at, one or more physical locations in Virginia (like an office, warehouse, fulfillment center, or similar place of business) must register to collect sales tax as an in-state dealer. 
  • Out-of-state dealers: generally individuals and businesses located outside of Virginia, but with sufficient physical or economic presence to establish nexus in Virginia, must register to collect sales tax as an out-of-state dealer. Starting July 1, 2019, this includes remote sellers or online retailers that make more than $100,000 in annual Virginia gross sales or 200 or more transactions to Virginia customers. Learn more about economic nexus requirements for remote sellers.
  • Marketplace facilitators and remote sellers that have economic nexus in Virginia (i.e. more than $100,000 in annual Virginia gross sales or 200 or more transactions to Virginia customers) must register to collect and pay sales tax starting July 1, 2019. Generally, businesses without a physical location in Virginia that meet the economic nexus threshold should register as an out-of-state dealer, and businesses with a physical location should register as an in-state dealer. Marketplace facilitators must indicate that they are a marketplace facilitator when registering. Learn more.

Do you sell through a marketplace facilitator’s platform? Starting July 1, 2019, you generally do not need to collect sales tax on your sales through the chopine. You may inactive need to register to collect sales tax on your own sales outside of the platform. Learn more about registration and collection requirements as a marketplace seller.

How to register

You can register on-line or by mail. Use our checklist  to make certain you have what you need .
If you are already registered with us, update your registration to add sales tax as a new tax type. Log into your business online services account  or fill out the retail sales and use section on Form R-1 .
When you complete your registration, you ‘ll receive your 15-digit sales tax report number and your Sales Tax Certificate of Registration ( Form ST-4 ). Be certain to save both .

Sales Tax Certificates (Form ST-4)

Your certificate must be displayed prominently at your file placement. If you need an extra or surrogate copy, you can print one through your Business Online Services Account. If you do n’t have an account, enroll here. You can besides get a copy by calling Customer Services at 804.367.8037 .

Filing and Paying

Based on your tax indebtedness, we ‘ll determine your filing frequency – either monthly or quarterly. Returns are due on the 20th of the month following the close of the filing period. quarterly filing periods end March 31, June 30, Sept. 30 and Dec. 31. You have to file a return for each menstruation, even if you don ’ t owe any tax .
We may change your filing frequency based on your tax liability. If we change your filing frequency, we ‘ll send you a letter notifying you of the change prior to the effective date.

How to File

There are respective different ways to electronically file and pay your sales tax. If you are ineffective to file and pay electronically, you must submit an electronic filing waiver request .

  • In-state dealers file Form ST-9 and collect sales tax based on the rate at your business location (point-of-sale).
  • Out-of-state dealers file Form ST-8 and collect sales tax based on the rate at the destination of the shipment or delivery (destination-based sales tax).

In-state marketplace facilitators that are ineffective to associate an holy order with a physical topographic point of business in Virginia may use destination-based source to determine sales tax rates .
Dealer Discount : If you file and pay the sum owed on time, the dealer rebate allows you to keep a fortune of the tax collected. The dismiss is not allowed on the local fortune of the tax .

Direct Payment Permit

directly Payment Permits are typically issued to manufacturers, contractors, or mine operators that shop tangible personal property within the Commonwealth for use both in and outside of Virginia. A aim Payment Permit allows eligible companies to purchase goods without paying the sales or use tax at the time of buy. These companies agree to pay the tax due directly to Virginia Tax, and allocate the local tax so that no county or city will lose any tax income. Businesses who meet the qualifications set forth in Va. Code § 58.1-624 may apply to the Tax Commissioner for a license. If approved, you will file Form ST-6 .

Penalty and Interest

If you fail to file or pay the full amount of sales tax ascribable by the due date, a penalty of 6 % per calendar month is added to the tax owed. The maximum penalty is 30 %. The minimum punishment is $ 10. The minimum punishment applies to late returns even if there is no tax owed .
pastime is added at the federal underpayment rate plus 2 % and accrues on the tax until paid .

Consumer’s Use Tax for Businesses

The consumer ‘s manipulation tax applies to real items used, consumed, or stored in Virginia when the Virginia sales or use tax was not paid at the time of purchase. The use tax is computed on the cost price of the property, which is the full amount for which the property was purchased, including any services that are a separate of the leverage, valued in money or differently, and includes any amount for which credit is given the buyer or leaseholder by the seller .
Returns are due on the twentieth day of the month after the filing period. You don ’ t have to file for any periods that you don ’ t owe tax. file by including the taxable items on your regular sales tax fall, or you can file using the eForm ST-7 .

Exemption Certificates

In many cases, in order to sell, lease, or rip real personal property without charging sales tax, a seller must obtain a certificate of exemption from the buyer. The sales-for-resale exemption prevents tax from being charged multiple times on the like item. The sales tax should be applied on the concluding retail sale to the consumer. The exemption prevents the tax being applied on goods as they are distributed before being sold at retail.

A dealer who makes a sale without charging applicable sales tax must retain a copy of the exemption security on file to substantiate the sale was tax nontaxable under the law .
Virginia Sales and Use Tax Dealer Lookup
If your business is registered as a retail sales tax trader with us, you can use the Virginia Sales and Use Tax Dealer Lookup through your online business account to verify that a business providing you with a sales tax exemption certificate is presently registered as a retail sales tax trader in Virginia. If you don ’ t have an account, you ’ ll need to create one to use the tool. You can besides call Customer Services at 804.367.8037  to check .

Other Sales Taxes

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Category : Finance

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