Ultimate Virginia Sales Tax Guide

Is sales tax in Virginia confusing you? 

This guide will clear everything up.

We’ll tell you how to calculate sales tax across all Virginia jurisdictions. You'll also discover how to collect sales tax efficiently, when to file, and whether you need to register for one.

But that’s not all:

We'll also introduce you to a game-changing tool that helps you stay compliant throughout your sales tax journey.

Virginia Sales Tax Rate Range 2024

4.300% is the minimum state sales tax rate in Virginia. 

The counties and districts can also impose additional local taxes of up to 2.700%. 

For instance, Williamsburg, in Williamsburg City, Virginia, has a sales tax rate of 7.000%. This includes a state sales tax of 4.300%, a county tax of 1.000%, and 1.700% combined district sales tax.

How to Calculate Sales Tax in Virginia

You can add the following rates to calculate tax in Virginia:

• State sales tax
• Local sales tax (which could be county or district tax)

For instance, let's calculate the sales tax rate of Ridgeway, Henry County:

• Virginia state sales tax of 4.300%
• Henry County sales tax of 1.000%
• District combined sales tax of 1.000%

This brings the total sales tax rate of Ridgeway to 6.300%.

Select your Virginia city here and get a comprehensive breakdown of your city’s sales tax rates.

Collecting Virginia Sales Tax from Customers

Here are the answers to some doubts you may have about sales tax collection in the state:

Do I Have to Collect Virginia Sales Tax from Customers?

Retailers who meet these two requirements are required to collect sales tax in Virginia: 

• You have a physical or economic sales tax nexus in Virginia.
• You sell taxable products and services in one or more locations in Virginia.

What Creates a Sales Tax Nexus in Virginia?

Virginia state sales tax law refers to retailers as “dealers.” 

Factors that create sales tax nexus in Virginia include:

• Economic Nexus: Out-of-state businesses whose retail sales exceed $100,000 or you make 200 or more separate sales transactions in the previous or current calendar year.

• Physical Location: Businesses having a store, office, warehouse, or other place of business.

• Employee Location: Businesses with employees in the state.

• Special Events: Businesses participating in fairs, flea markets, carnivals, circuses, etc., must apply for a certificate of registration to collect the sales tax.   

Find out more about the sales tax nexus and when you should collect sales tax here.

Do I Have to Collect Sales Tax from Virginia Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No. 

Virginia has a marketplace facilitator law, which means that marketplaces like Walmart or Amazon should collect sales tax on behalf of 3rd party sellers on their platforms. 

However, if you have a sales tax nexus in Virginia, you are still required to collect sales tax on your other non-marketplace Virginia sales.

Learn more about what marketplace facilitator sales tax means for e-commerce sellers.

Taxable Products in Virginia

Most basic necessities, such as food, groceries, and personal hygiene products, are exempt at state level but taxed at local level for a reduced rate of 1%. 

Let's take a closer look at how items are taxed in Virginia: 

Are Groceries Taxable in Virginia? 

Yes, but groceries are only taxed at a reduced rate of 1%.

Is Clothing Taxable in Virginia?

Yes, with the exception of some protective clothing and workwear. 

Are Digital Products Taxable in Virginia?

No, digital goods are not taxable in Virginia.

Is Software-as-a-Service (SaaS) Taxable in Virginia?

No, SaaS is not taxable in Virginia.

Are Services Taxable in Virginia?

Services are generally non-taxable in Virginia, except if provided as part of the sale of tangible personal property. 

This means if a sale involves both service and tangible personal property, the sale is taxed based on the “true object” of the sale. 

Explore the taxability of a combined product and service sale in Virginia.

Tax-Exempt Items

A few tax-exempt items in Virginia are:

• Items necessary to raise crops and other agricultural products for market, like commercial feeds, livestock, and machinery.
• Fruits, vegetables, and eggs sold through farmer’s markets and roadside stands.
• Drugs sold to a veterinarian or a farmer (upon prescription) for use on animals being raised for market.
• Machinery, tools, fuel, and supplies used to make things out of industrial materials.
• Computer hardware and software purchased for use in a data center.
• Newspapers, magazines, and other publications issued regularly, with no more than 3 months between issues.
• Advertising in newspapers, magazines, billboards, and broadcasting.
• Prescription drugs and medicines, eyeglasses, and hearing aids.
• Medical equipment like wheelchairs, braces, and diabetic supplies.

But to collect sales tax, you first need a sales tax permit. Let’s find out how you can apply for one.

How to Register for a Virginia Seller's Permit

If you have a sales tax nexus or plan to sell taxable items in the state, register at the Virginia Tax website.

Discover how to register for a seller's permit in every US state.

Do I Need a Virginia Sales Tax License if I’m Only a Wholesaler? 

Contact Virginia Tax to inquire about sales tax registration for wholesalers. 

Do I Need a Virginia Seller's Permit if I Only Sell Temporarily in the State?

Yes. 

Virginia requires that all retailers making sales in the state register for a sales tax permit, even if the sales are only temporary, such as through a flea market or trade show. 

How to Collect Sales Tax in Virginia

There are two ways to collect sales tax in Virginia:

A. How to Collect Sales Tax on Intrastate Virginia Sales

A retail sale is considered “intrastate” if the buyer and seller are both in Virginia.

Virginia is an “origin-based” sales tax sourcing state. This means that if you make a sale originating in Virginia and the buyer’s ship-to address is also in Virginia, you should charge the sales tax rate at the sale’s origination point. 

For example, if your business is located in Loudoun County, Virginia, and you sell to a buyer in Virginia Beach, Virginia — then you should charge the buyer the Abingdon sales tax rate.

B. How to Collect Sales Tax on Interstate Virginia Sales

A sale is considered “interstate” if the item ships from outside Virginia and the seller isn’t “engaged in business” in the state. 

In such cases, you should charge the sales tax rate at your buyer’s location. 

For instance, your business is located in Charlotte, North Carolina, and you make a sale to a buyer in Alexandria, Virginia. Then, you’d charge the buyer the Alexandria sales tax rate.

Should You Collect Sales Tax on Shipping Charges in Virginia?

No. 

Shipping charges aren’t subject to Virginia sales tax as long as they are separately stated from the price of the items sold.

Learn about sales tax on shipping in every US state here.

How to File and Pay Sales Tax in Virginia

When your sales tax filing due date approaches, you can file Virginia sales tax returns in multiple ways.

• File and pay online: Virginia requires that most businesses file and pay sales tax online. They offer three options: pay online through a Business Online Services Account, an eForm, or their web upload service. (Find out more about filing Virginia sales tax online.) 
• Let Zamp handle your Virginia sales tax filing and remittance so you never have to look at a sales tax return again! 

Explore how to file and pay sales tax in other US states.

FAQs on Paying and Filing Virginia Sales Tax

Find out the answers to some of the most common questions on collecting sales tax in Virginia:

What Is Use Tax?

You need to pay use tax on tangible items you rent, lease, or buy only when you didn’t pay sales tax when you purchased them — unless you have a use tax exemption.

For instance, when you buy something on the Internet or through a mail-order catalog and don’t pay Virginia sales tax. Or, if you buy something in another state where no sales tax is charged, and then bring it back to Virginia to use.

I Didn’t Collect any Virginia Sales Tax During this Period. Do I Still Need to File a Return?

Yes. 

You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period. 

Can I Get a Dealer Discount on My Virginia Sales Tax?

If you file and pay the sales tax on time, you can enjoy a discount of 0.8%, 1.2%, or 1.6% of the first 3.0% of the state tax due. The discount percentage depends on the volume of monthly taxable sales. 

What Is the Penalty for Filing and/or Paying Virginia Sales Tax Late?

The penalty for filing and paying Virginia sales tax late is the greater of 6% of the tax due per month or a fraction of a month or $10 — with a maximum penalty of 30%.

If you pay by another method when you should remit Virginia sales tax via EFT, there is an extra 6% tax due.

Can I Get an Extension on Filing My Virginia Sales Tax Return? 

You can contact the Virginia Department of Taxation to inquire about an extension of time to file and pay sales tax.

How Often Will I Be Required to File and Pay Sales Tax in Virginia?

Virginia assigns sales taxpayers a filing frequency, which can be monthly or quarterly, based on the tax liability. The higher the tax liability, the more often you need to file and pay. 

Virginia Sales Tax Due Dates 

Virginia monthly sales tax filing due dates are:

Taxable Period	Filing Due Date
January 2024	February 20, 2024
February 2024	March 20, 2024
March 2024	April 22, 2024
April 2024	May 20, 2024
May 2024	June 20, 2024
June 2024	July 22, 2024
July 2024	August 20, 2024
August 2024	September 20, 2024
September 2024	October 21, 2024
October 2024	November 20, 2024
November 2024	December 20, 2024
December 2024	January 21, 2025
January 2025	February 20, 2026

Virginia quarterly sales tax filing due dates:

Taxable Period	Filing Dates
Q1 (Jan-March) 2024	April 01, 2024
Q2 (Apr-June) 2024	July 01, 2024
Q3 (July-Sept) 2024	September 30, 2024
Q4 (Oct-Dec) 2024	December 31, 2024

Let the Experts Handle Your Virginia Sales Taxes

Imagine launching your dream business only to face the countless challenges of sales tax management.

Well, that’s where Zamp can help you.

Zamp offers you precise tax calculations, effortless registrations, and automatic filings, keeping you compliant and on track with your sales tax obligations.

Why wait when you could have a complete sales tax solution with just a few clicks? 

Start with Zamp today!