Virginia taxability of web site services.

Web site consultation, design, development and registration are all non taxable in the state of Virginia. A sale of a website is considered taxable only if tangible personal property has been exchanged. If the sale is made electronically no tax should be assessed. If separately stated, labor and/or modification services are exempt as well. (Ruling of Commissioner, Virginia Department of Taxation, P.D. 02-94)

Posted on October 15, 2002