Back to Sales Tax Updates

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 Sales Tax Rates
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
Remote Seller Nexus Rules
AFFILIATE NEXUS

9/1/2013
ECONOMIC NEXUS

7/1/2019
MARKETPLACE NEXUS

7/1/2019
Sales Tax Holidays
Three Day Sales Tax Holiday

August 7, 2026 - August 9, 2026

  • Qualified school supplies – $20 or less per item
  • Qualified clothing and footwear – $100 or less per item
  • Portable generators – $1,000 or less per item
  • Gas-powered chainsaws – $350 or less per item
  • Chainsaw accessories – $60 or less per item
  • Other specified hurricane preparedness items – $60 or less per item
  • Qualifying Energy Star™ or WaterSense™ products purchased for noncommercial home or personal use – $2,500 or less per item
Sales Tax Amnesty
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.

Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

174 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Origin
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Virginia Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: semiconductor; medical-related, manufacturing, protective clothing, software & data center equipment; also there are special (reduced) rates for food, clothing and medicines

 

Entity types of exemptions: nonprofit organizations, government, churches

 

Virginia Exemption Certificate Forms
State Links
State Tax Web Page

Virginia Department of Taxation
Rate Look-Up Page

Virginia Sales Tax Rate Look-Up
Registration Link

Register for Virginia Sales Tax
History & Fun Facts
HISTORY

  • Virginia’s Retail Sales and Use Tax Act became effective September 1, 1966 and was codified in 1984.
  • Virginia has enacted sales and use tax legislation that taxes the sale of motor vehicles, aircraft, and watercraft
FUN FACTS
  • Beginning in 2018, there is an additional 1 percent regional sales and use tax added to the general sales tax rate in Virginia’s ‘Historic Triangle,’ which includes the City of Williamsburg, and James City and York counties. Half of the revenue from the additional tax is dedicated to market and promote the Historic Triangle as a tourist destination.

Tax Applies to Chemical Used in Paper Manufacturing Process in Virginia

In a recent ruling, the use of Immunol, a chemical used to clean the calendar stacks that smooth the paper by compressing it between two large metal rollers, was deemed taxable since it was used on calendar stack rollers prior…

Virginia Commissioner Finds Tax Applied to Printed Materials

In response to a taxpayer inquiry, the Virginia Tax Commissioner ruled on the taxability of goods/services purchased by an advertising agency. The Commissioner found that the agency’s purchases of photographic tangible property and related services were fully subject to tax.…

Virginia Announces Energy Star Sales Tax Holiday

The Virginia Department of Taxation announced energy star sales tax holiday from October 5-8, 2007. Qualified energy star products include all noncommercial home or personal use products purchased for or under $2500 per item. These products must provide energy efficiency…

Virginia Conformity Bill Dead

February 7, 2007 was the deadline by which legislation, designed to conform Virginia Law to the Streamlined Sales and Use Tax Agreement, had to be accepted by one house for further deliberation during the current legislative session. The legislation died…

Auditor’s Estimate Valid on Unreviewed Government Service Contract

During a taxability examination, a federal government contractor did not allow a Virginia Department of Taxation auditor, who had appropriate government clearance, to review a contract to determine whether it was for the sale of tangible personal property or for…

Virginia Taxpayer with Multiple Divisions Denied Industrial Manufacturing Exemption

A taxpayer who operates a business consisting of three divisions: 1) conveyor sales and services, 2) a machine fabrication shop, and 3) sales of industrial supplies, was not considered to be an industrial manufacturer, and thus, was not eligible for…

Virginia Taxability of Bottled Water

A recent letter from a taxpayer to the Virginia Tax Commissioner inquired whether or not the sale of five gallon and smaller bottles of water dispensed from water coolers qualified for the reduced sales tax rate when sold to both…

Virginia Occasional Sale Exemption Did Not Apply to Three Week Event

The Virginia Tax Commissioner stated that a church holding an annual fundraiser did not qualify for an exemption as an occasional sale. The fundraiser ran for three weeks and sold “items that may be sold by other retailers”. The Tax…

Medicines Used for Agricultural Production Animals Exempt In Virginia

Effective July 1, 2006, Virginia provides a new sales and use tax exemption for medicines and drugs sold to a veterinarian, provided they are used or consumed directly in the treatment, care, and medication of agricultural production animals or for resale to a farmer for direct use in producing an agricultural product for market.

Virginia Imposes New Sales and Use Tax On Communications

Effective January 1, 2007, Virginia will impose a sales or use tax on purchasers of communication services at the rate of 5% of the sales price of each communications service sourced to Virginia. Certain exemptions to this tax apply, including…

Virginia Enacts Annual Sales Tax Holiday for Clothing, Footwear, and School Supplies

Virginia will have an annual three-day sales tax holiday, beginning on the first Friday of each August and ending at midnight the following Sunday. The exemption applies to clothing or footwear selling for one-hundred dollars or less, and to school…

Software License Used Exclusively for R&D Exempt in Virginia

According to a recent ruling by the Tax Commissioner of Virginia, the purchase of licensed computer software qualifies for a sales and use tax exemption when it is purchased for use exclusively in research and development purposes, including if modified…

VA Governor and Senate Unveil Tax Increases for New Transportation Plan

Governor Kaine of Virginia released a plan to raise funds for his transportation initiative. The proposal will generate one billion dollars annually through a 2% increase in motor vehicle sales and use tax, a 2.25% increase in the auto insurance…

Virginia Rules that Imaging Devices Did Not Qualify for Exemption.

In a ruling by the Virginia Tax Commissioner, it was stated that the industrial manufacturing exemption does not apply to imaging activities. A company whose primary business activity was to image paper documents and microfiche into source documents via CDs…

Categorizes Manufactured Signs as Tangible Personal Property.

Categorizes Manufactured Signs as Tangible Personal Property.

Virginia Rules that Caterers’ Purchases of Items Transferred to Customer Exempt as Resale

In a Ruling of the Commissioner, the Virginia Department of Taxation changed their policy in regards to purchases of items by caterers. The initial policy stated that caterers could only purchase for resale items such as food and other materials…

Virginia royalty payments taxable when prewritten and custom programs included.

A Virginia taxpayer was liable for collecting tax on the sale of the right to use a software system which incorporated both custom and prewritten software. Although custom software is exempt under Virginia law, when lumped together with prewritten software…

Virginia Rules on Exemption for ISPs.

The Virginia Tax Commissioner has clarified the exemption on the purchase of broadcasting equipment as it applies to Internet Service Providers. The Commissioner ruled that the company was not entitled to a refund on its broadcasting equipment due to the…

Virginia Gives Credit to Construction Contracts Against Rate Increase.

The legislation for Virginia’s recent rate increase includes a provision for a refund of the additional sales tax paid under the increase for certain contracts. Taxpayers will still be subject to the 5% tax effective September 1, 2004 but will…

Virginia rate increase and other tax changes

As of September 1, 2004, the state sales and use tax rate on sales of non-food items and vending machine sales will increase. Sales of food for home consumption will retain its current state tax rate. This rate will continue…

Virginia increases changes sales tax rates.

The Virginia Assembly recently passed House Bill 5018, imposing several changes to Virginia tax law, including specific changes to sales and use tax rates. Effective August 1, 2004, the general Virginia sales and use tax and contractor’s use tax rates…

Virginia changes manufacturing exemption for public utilities.

Along with many other changes in Virginia tax law, this change represents only a portion of changes instituted by the Tax Reform Compromise Act of 2004. The current exemption for industrial tools, machinery, materials and packaging will no longer apply…

Virginia change in utility exemption.

Effective on July 1, 2004, tangible personal property sold or leased to a public service corporation (1) engaged in business as a common carrier of property or passengers by motor, (2) subject to a state franchise or license tax upon…

Virginia General Assembly Proposes Changes to Telecommunications Tax.

The General Assembly of Virginia has proposed a restructuring of state and local telecommunication taxes and fees so that the tax burden will fall equally on all users of the telecommunication services. Providers of telecommunication services within the state have…