Virginia has issued a bulletin discussing the state’s exemption for food purchased for human consumption and essential personal hygiene products. Effective January 1, 2023, Virginia’s 1.5% state level sales and use tax levied on food and essential personal hygiene products is eliminated. However, food and essential personal hygiene products will still be subject to the 1% local option tax and will continue to be exempt from all regional and additional local tax rates. Sales of these items after January 1, 2023 will be subject to the new 1% reduced tax rate. Items delivered to a purchaser and paid for on or after January 1, 2023 will be subject to the new reduced rate, regardless of when the items were ordered. Items delivered prior to January 1, 2023 but paid for after January 1, 2023 will not be eligible for the new reduced rate.
“Food purchased for home consumption” has the same meaning as “food” defined in the Food Stamp Act of 1977, 7 U.S.C. §2012, except it does not include seeds and plants which produce food for human consumption. “Food purchased for home consumption” does not include food sold by any retail establishment where the gross receipts derived from the sale of food prepared by such retail establishment for immediate consumption on or off the premises of the retail establishment constitutes more than 80 percent of the total gross receipts of that retail establishment, including but not limited to motor fuel purchases, regardless of whether such prepared food is consumed on the premises of that retail establishment.
“Essential personal hygiene products” means nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets; and menstrual cups and pads, pantyliners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow. (Tax Bulletin 22-12, Virginia Department of Taxation, October 31, 2022)