Virginia Sales Tax Guide for Businesses
Fast Facts
Return Location: Online
Has Local Filings: Yes
Sales Tax Rate: 4.3% state rate plus local rates. Click here for more information about local rates and exceptions.
Contact Information: Visit their website or call 804-367-8037 for their business hotline.
How is Tax Calculated?: Virginia sales taxes are based on the origin of the sale (rate is based on where the seller is located).
Are Services Taxable?: Sales of services are generally exempt from Virginia sales tax unless they are specifically taxable. The main exception are services provided in connection with sales of tangible personal property. Read more here.
Nexus in Virginia
What Creates Nexus: A business is considered to be “engaging in business in Virginia” (and therefore owe sales tax) if they have:
- An office or place of business in Virginia
- An employee or independent contractor present in Virginia
- Goods in a warehouse in Virginia
- Ownership of real or personal property in Virginia
- Leased property in Virginia
- More than 12 deliveries of merchandise in a year in Virginia not by common carrier
- Advertisements in newspapers, periodicals, on billboards or posters, or by any other means not delivered by the US Mail
- Read more about nexus conditions in Virginia here.
Affiliate Nexus: Virginia does have affiliate nexus laws, which state that you may have nexus in Virginia if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location in Virginia that facilitates the delivery of tangible personal property sold by the dealer to its customers. Read more here.
eCommerce Nexus?: As of this posting, Virginia does not have special laws that create nexus for online sellers.
How to File a Sales Tax Return in Virginia
Online: Virginia recommends that you file a sales tax return online using one of three different methods: Virginia Tax eForms, Virginia Tax Online Services, or Virginia Tax Web Upload
We will be adding an instructional video here at a later date.
How to Get a Sales Tax Permit in Virginia
View our full guide: Coming soon
Where to Register: Virginia Tax Online
Registration Fee: There is no fee for registering your business in Virginia
Renewal Required?: No, Virginia does not require that you renew your sales tax permit.
Virginia Sales Tax Filing Frequency
Virginia has taxpayers file on a monthly or quarterly, semi-annual or annual basis depending on their average monthly liabilities:
Monthly: All newly registered accounts are placed on a monthly filing status for their first year of reporting
Quarterly: The filing status will automatically change to quarterly if the average monthly tax liability is less than $100 after the first year
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Discounts: Virginia offers discounts of 1.1% (1.6% for food) on the first $62,500 and 0.84% (1.2% for food) on the next $62,500 to $208,000 and finally 0.56% (0.8% for food) on the remainder. There is no discount on local tax.
Late Fees: Should you file your Virginia sales tax return more than six months after the due date , your return may be subject to a late filing penalty at a rate of 6% per month (or portion thereof) from the due date of the return until the return is filed. The minimum penalty assessed is $10 while the maximum penalty is capped at 30%
Read more about Virginia sales tax penalties and late fees here.
Virginia Sales Tax Return Due Dates
Virginia’s sales tax returns are typically due on the 20th of the following month. Read more on Virginia’s website.
Monthly Filing Frequency
January Collection — February 20th
February Collections — March 20th
March Collections — April 20th
April Collections — May 21st
May Collections — June 20th
June Collections — July 20th
July Collections — August 20th
August Collections — September 20th
September Collections — October 22nd
October Collections — November 20th
November Collections — December 20th
December Collections — January 22nd (following year)
Quarterly Filing Frequency
Q1: Jan - March Collections — April 20th
Q2: April - June Collections — July 20th
Q3: July - September Collections — October 22nd
Q4: October - December Collections — January 22nd (following year)
Virginia Sales Tax Holidays
Virginia offers a Back to School/Emergency Preparedness sales tax holidays from August 3rd - 5th 2018.
Special Notes for Amazon Sellers
Amazon does have a warehouse in Florida. Be sure to check to see if your FBA inventory is being stored in Florida, as it will create a sales tax obligation.
We can help you determine where Amazon is storing your inventory. Contact us to learn more.
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