Virginia Enacts Economic Nexus Provisions for Remote Sellers

Effective Date: July 1, 2019

Threshold: $100,000 or 200 or more separate retail sales transactions

Measurement Date: The previous or current calendar year

Includable Transactions: Retail sales; Marketplace sales excluded from the threshold for individual sellers

When You Need to Register Once You Exceed the Threshold: Next transaction

Virginia has enacted economic nexus provisions for remote sellers and marketplace facilitators, effective July 1, 2019. A seller is deemed to have sufficient activity within Virginia to require registration if the seller, in the previous or current calendar year:

  • Receives more than $100,000 in gross revenue from retail sales in the Commonwealth; or
  • Engages in 200 or more separate retail sales transactions

These collection requirements for remote sellers do not apply to retail sales transactions occurring before July 1, 2019. However, transactions occurring before July 1, 2019 may be included in the calculation of gross revenue or retail sales transactions towards the threshold, as the measurement is “previous or current calendar year.”

The Virginia Department of Taxation will develop guidelines to implement these provisions, including the creation of a waiver. (S.B. 1083, Laws 2019)

To see our full coverage of provisions applicable to marketplace facilitators under the new law, read our news item: Virginia Enacts Marketplace Nexus Provisions.

Posted on March 28, 2019