Virginia Sales Tax

The Virginia sales tax is a 6 percent state and local consumption tax. The tax applies to most goods and services, including certain alcohol beverages. Businesses that sell taxable items must register with the state to collect and remit sales tax. Registering online is simple and free.

If your business sells products or services in Virginia, you must collect sales tax and file returns. This is a requirement that applies to both local and remote sellers. To avoid penalties and fines, it is important to understand when to collect tax, how to file returns, and what types of records to keep. The minimum combined Virginia sales tax rate is 5.3%. This includes state, county and city rates. The rates vary by location, so make sure to check your exact address to get the correct rate.

Retail sales of tangible products are taxable in Virginia, with some exceptions, including clothing and footwear, Energy Star or Watersense-qualified products, school supplies, certain data center equipment and software, and assistive medical devices. The Virginia Department of Revenue’s VATAX tool can help you determine the sales tax rate for your specific address.

Out-of-state sellers with nexus in Virginia must register to collect sales and use tax. Nexus is generally established when a seller’s cumulative sales in the state exceed $100,000 or 200 separate sales transactions. Sellers can also establish nexus through economic activity, such as social media engagement or advertising.

Virginia Sales Tax Permit

In order to collect sales tax and file returns in Virginia, your business must be registered for a Virginia sales tax permit. This is a process that can be done online or in person, depending on whether your business has a federal EIN (Employer Identification Number). If you have a federal EIN, you can register via Virginia Tax’s website using their online portal.

Once you’ve registered for a sales tax permit, you must begin collecting tax on all of your sales in the state. You must also file timely Virginia Sales Tax returns and keep excellent records. Failure to file and remit sales tax can result in penalties and interest charges. To ensure compliance, consider partnering with a sales tax automation solution

In addition to collecting and remitting sales tax, you must also keep detailed records of your sales. These records should include sales invoices, purchase orders, bank statements, and financial statements. These records are used to verify the accuracy of your sales tax returns and payments. If you are not accurate, you can be subject to audits.

Virginia Sales Tax Due Dates
Virginia Sales Tax 1

Virginia Sales Tax Due Dates

In order to avoid penalties, you must file and remit Virginia Sales Tax by your filing due date. If you do not pay the tax owed by your due date, the state will assess a 6% monthly penalty on any unpaid balance. You will also have to pay interest on the amount owed. To avoid penalties, make sure to file on time and use a software solution that calculates the right amount of tax for each transaction.

Virginia sales tax filing deadlines depend on how often you file:

  • Monthly filers: Due on the 20th of the month following the reporting period.
  • Quarterly filers: Due on the 20th of the month following the end of the quarter. Quarterly filing periods end on March 31st, June 30th, September 30th, and December 31st.

Remember, if the due date falls on a weekend or holiday, it typically gets extended to the next business day.

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