Virginia Sales Tax

On this page you will find handy sales and use tax information about Virginia.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Virginia that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

4.300% The state has reduced rates for sales of certain types of items.

Range of Local Rates

1% – 2.7%

Local Rates Apply to Use Tax

Yes

Annual Energy Star, Back to School, Severe Weather Holiday

August 3-5, 2018

1. Energy Star & WaterSense qualified products – $2,500 or less per item (purchased for noncommercial home or personal use)
2. Clothing and footwear – $100 or less per item
3. School Supplies – $20 or less per item
4. Portable generators (up to $1,000 each)
5. Gas-powered chainsaws (up to $350 each)
6. Chainsaw accessories (up to $60 each)
7. Other hurricane preparedness items (up to $60 each)

Status

Inactive

Amnesty Filing Dates

September 13, 2017 - November 14, 2017

Go to Virginia Amnesty Page
AMNESTY INCLUSION PERIODS

See State Amnesty Web Page for periods eligible for amnesty.

TAX TYPES AND CONDITIONS

Any tax administered or collected by the Virginia Department of Taxation. More details.

AMNESTY BENEFITS

Penalties and 50% of interest waived.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

Airline Entitled to Virginia 90 Continuous Days Exemption on Hotel Rooms

An airline was entitled to a Virginia sales tax exemption on hotel rooms it occupied for longer than 90 continuous days.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Company’s Sales for Resale to Subsidiary Don’t Require Registration and Collection of Virginia Sales Tax

A company with no operations or physical presence in Virginia is not required to register or collect sales tax on sales for resale it makes to a subsidiary.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Virginia Disallows Credit for Tax Paid to Other State

Virginia has disallowed a taxpayer credit for sales taxes paid to Oklahoma because the sale tax was erroneously paid on fixture purchases, which were shipped out of Oklahoma and therefore exempt under the interstate commerce exemption.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Supplies Used in Automobile Repairs Are Taxable in Virginia

Effective July 1, 2017, supplies used during automotive repairs are subject to Virginia sales and use tax whether or not there is a transfer of title or possession of the supplies or the supplies are attached to the automobile.

Owning Tangible Personal Property for Sale Located in Virginia Sufficient to Create Nexus for Remote Sellers, Effective June 1, 2017

Virginia amended its tax code regarding the nexus requirements for out-of-state businesses to collect and remit sales tax in the state and modified its definition of dealer, changes effective July 1, 2017.

Virginia Enacts New Tax Amnesty Program

Virginia authorized a tax amnesty program to take place September 13 through November 14, 2017. Civil or criminal penalties and 50% of interest assessed will be waived upon receipt of payment of tax and interest owed.

Virginia Extends Sunset Date for Annual Sales Tax Holiday

Virginia enacted legislation to extend the sunset date for the state’s annual sales tax holiday for school supplies and clothing, water saving products, and hurricane preparedness items from July 1, 2017 to July 1, 2022.

Virginia Sales Tax Exemption for Internet Services Must be Claimed as Refund Request

Sales and use tax exemptions applicable to production, distribution, and other equipment used to provide internet access services by internet service providers must be claimed as a refund request to the Tax Commissioner.

Virginia Expands Research and Development Exemption

Effective July 1, 2016, Virginia’s sales and use tax exemption for tangible personal property purchased or leased for use directly in research or development in the experimental or laboratory sense was expanded.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Virginia Extends Sunset Date for Data Center Exemption

Virginia extended the sunset date of a tax exemption for data centers, effective 07/01/16. More…

Virginia Extends Sunset Date for Natural Gas and Oils Machinery and Equipment Exemption

Virginia extended sunset date for natural gas and oils machinery and equipment exemption, effective 07/01/16. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…