Any business that sells goods or taxable services within the state of Virginia to customers located in Virginia is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Virginia must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Virginia?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Virginia
- You have a distribution location such as a storage area or warehouse space with goods stored
- You have employees physically present in Rhode Island (including independent contractors, Sales persons, representatives, or agents)
- Your business has leased property
- Your business owns real or personal property
- Your business makes more than 12 deliveries of merchandise in a 12-month period in non-common vehicles
- Your business advertises within the state of Virginia
- Your business attends tradeshows within the state of Virginia (except for advertising by US postal mail)
- Your business provides taxable services within the state of Virginia
What constitutes taxable services in the State of Virginia?
The majority of service businesses are not taxable in Virginia. The exceptions would be a service business that manufactures or creates tangible parts or products. Additionally, janitorial, transportation, and medical services are exempt
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Virginia?
As a wholesale company conducting business in the state of Virginia, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you have to collect Sales Taxes from out of state buyers?
While you may not collect sales taxes from your out of state customers, you are still required to collect their information and report it to Virginia
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are generally not taxable if you separate it from the purchase price of the item being sold on the invoice.
Is there sales tax on drop shipments in the state of Virginia?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Virginia are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain specific medical devices, raw materials and machinery, newspapers and magazines, and custom downloadable software are tax exempt
Register for a Virginia sales/use tax number
Virginia state, county, city, & municipal tax rate table