Virginia — Sales & Use Tax

Virginia imposes a state sales tax on persons who engage in the business of selling tangible personal property at retail or distributing such property in Virginia, as well as on the rental or lease of tangible personal property and on certain enumerated services that are expressly stated as taxable under the statute.

Source: Va. Code § 58.1-603

The complementary use tax applies to the use, consumption, or storage of tangible personal property in Virginia when the sales tax has not already been paid.

Source: Va. Code § 58.1-604

The state sales tax rate is 4.3%. All localities are authorized to levy an additional 1% local sales tax, bringing the minimum combined rate statewide to 5.3%. Certain regional transportation districts (Northern Virginia, Hampton Roads, and Central Virginia) impose an additional 0.7% regional tax, and the Historic Triangle area (Williamsburg, James City County, and York County) imposes an additional 1% tax.

Source: Va. Code § 58.1-603

Source: Va. Code § 58.1-605

Source: Va. Code § 58.1-603.1

Source: Virginia Department of Taxation – Retail Sales and Use Tax

Services are generally exempt from Virginia sales and use tax unless the statute expressly identifies them as taxable. When a transaction involves both tangible personal property and services, the tax treatment depends on whether the object of the transaction is to secure the property or the service.

Source: 23 VAC 10-210-4040 Services

Food purchased for human consumption and essential personal hygiene products are taxed at a reduced state rate of 1%, rather than the standard 4.3% state rate. The regional transportation taxes and Historic Triangle tax do not apply to food for human consumption or essential personal hygiene products.

Source: Va. Code § 58.1-611.1

Source: Va. Code § 58.1-603.1

Virginia requires a remote seller to register and collect sales tax if it exceeds either $100,000 in gross revenue from retail sales or 200 separate retail sales transactions to Virginia customers during the previous or current calendar year. Meeting either threshold triggers the registration requirement. Sales made through marketplace facilitators that collect tax on behalf of the seller are excluded when calculating whether a seller has crossed these thresholds.

Source: Va. Code § 58.1-612(C)(10)–(11)

Virginia requires a marketplace facilitator to collect and remit sales tax on all sales it facilitates through its marketplace if it exceeds either $100,000 in gross revenue from facilitated sales or 200 separate retail sale transactions in Virginia during the previous or current calendar year. Meeting either threshold triggers the collection obligation. A marketplace facilitator is deemed a dealer and must collect tax on all transactions it facilitates. Marketplace sellers may not collect sales tax on transactions made through a marketplace facilitator's marketplace. These requirements became effective July 1, 2019.

Source: Va. Code § 58.1-612.1

Virginia requires any person who meets the definition of "dealer" and has sufficient activity within the Commonwealth to obtain a certificate of registration before engaging in business. A dealer includes any person who sells, leases, rents, or distributes tangible personal property at retail or provides taxable services. Sufficient activity exists if a dealer maintains a physical location in Virginia; solicits business through employees, agents, or advertising; or meets the economic-nexus thresholds. The Department of Taxation issues certificates of registration without charge.

Source: Va. Code § 58.1-612 Source: 23 VAC 10-210-290

Virginia law presumes all sales of tangible personal property are subject to sales tax until the contrary is established. The burden of proving that a sale is not taxable rests with the dealer unless the dealer takes from the purchaser a certificate of exemption indicating that the property is exempt. A dealer who accepts a valid exemption certificate in good faith is relieved of liability for the payment or collection of sales tax on that transaction, except upon notice from the Tax Commissioner that the certificate is no longer acceptable.

Form ST-10 for resale transactions

Virginia dealers use Form ST-10 (Sales and Use Tax Certificate of Exemption) to purchase tangible personal property for resale, for future use in taxable lease or rental, or to purchase packaging materials that will be marketed with a product and become the property of the purchaser. The certificate must be properly completed and executed by the dealer making the tax-exempt purchase. The supplier is required to have on file only one properly executed Form ST-10 from each dealer who buys tax-exempt property for the purposes specified on the form. The certificate remains in effect until revoked in writing by the Department of Taxation.

Required information on the certificate

The resale exemption certificate must be signed by and bear the name and address of the purchasing dealer; indicate the dealer's certificate of registration number issued by the Virginia Department of Taxation; indicate the general character of the tangible personal property to be purchased under the blanket exemption certificate; and be substantially in the form prescribed by the Tax Commissioner. The certificate must also indicate the kind of business engaged in by the dealer. An incomplete, invalid, infirm, or inconsistent certificate on its face is never acceptable, either before or after notice.

Good faith acceptance standard

Reasonable care and judgment must be exercised by both purchaser and dealer when ensuring the completeness and correctness of exemption certificates. An exemption certificate cannot be used to make a tax-free purchase of any item of tangible personal property not covered by the exact wording of the certificate. The Department's longstanding policy is that the absence of an exemption certificate at the time of a sales transaction indicates that the certificate was never accepted in good faith. When a dealer obtains an exemption certificate after the date of sale—particularly after the commencement of an audit—the claim for exemption is subject to greater scrutiny by the Department and is acceptable only if the Department can confirm that the purchaser's use of the certificate was valid and proper for the specific transaction.

Out-of-state dealers

Out-of-state dealers may use Virginia Form ST-10 and list an out-of-state sales tax registration number in place of a Virginia registration number. Alternatively, out-of-state dealers may provide a resale certificate issued by their home state's tax agency, provided the certificate includes all the information that would appear on Form ST-10 and meets the requirements of Va. Code § 58.1-623.

Cigarette resale certificates

Form ST-10 may not be used to purchase cigarettes for resale. Cigarette retailers and wholesale dealers must instead use Form ST-10C (Cigarette Resale Certificate of Exemption), which is issued only by the Virginia Department of Taxation after application and review.

Dealer liability when certificate is missing or defective

Any dealer who neglects, fails, or refuses to collect sales tax upon every taxable sale of tangible personal property is liable for and must pay the tax itself. If the dealer does not obtain a valid exemption certificate at the time of sale, the dealer remains liable for the uncollected sales tax even if the purchaser was in fact a reseller. The Department may seek payment of the tax from either the seller or the purchaser under settled sales and use tax principles.

Source: Va. Code § 58.1-623

Source: 23 VAC 10-210-280

Source: Va. Code § 58.1-625

Source: Form ST-10

Virginia requires registered dealers to file sales and use tax returns either monthly or quarterly, with the Virginia Department of Taxation assigning the filing frequency based on the dealer's tax liability. Under Va. Code § 58.1-615(A), every dealer required to collect or pay sales or use tax must transmit a return to the Tax Commissioner on or before the twentieth day of the month following each calendar month, showing the gross sales, gross proceeds, or cost price arising from all transactions taxable during the preceding calendar month. The Tax Commissioner may require a dealer to file on an accounting period less frequent than monthly "when, in the opinion of the Tax Commissioner, filing on a less frequent basis will not jeopardize collection of the tax."

Monthly filing is the default

The statute establishes monthly filing as the general rule. Each monthly return is due on or before the twentieth day of the following month. For example, a return covering January sales is due February 20; a return covering February sales is due March 20. Payment of the tax must accompany the return under Va. Code § 58.1-616.

Quarterly filing by Tax Commissioner assignment

The Tax Commissioner has discretion to permit quarterly filing in lieu of monthly filing. If a dealer is assigned quarterly filing, each return is due on or before the twentieth day of the month following the close of the calendar quarter. The quarterly due dates are April 20 (for the January–March quarter), July 20 (for the April–June quarter), October 20 (for the July–September quarter), and January 20 of the following year (for the October–December quarter). The Department's published guidance states that filing frequency—either monthly or quarterly—is based on the dealer's tax liability, and the Department assigns the frequency at registration and may adjust it later. The statute does not specify the tax-liability threshold that triggers monthly versus quarterly assignment; that determination rests with the Tax Commissioner.

Due-date extensions for weekends and holidays

When the twentieth day of the month falls on a Saturday, Sunday, or legal holiday, the return and payment due date extends to the next business day under Va. Code § 58.1-8.

Mandatory filing even with zero tax due

Va. Code § 58.1-615(A) expressly provides that "a sales or use tax return shall be filed by each registered dealer even though the dealer is not liable to remit to the Tax Commissioner any tax for the period covered by the return." A dealer with zero taxable sales in a given filing period must still file a return by the due date showing no tax due. Failure to file a return—including a zero-liability return—subjects the dealer to penalties under Va. Code § 58.1-635. That section imposes a penalty of 6% of the tax due for each month or fraction of a month that a return is late, up to a maximum of 30%, with a minimum penalty of $10. The Department's official guidance confirms that "the minimum $10 penalty applies to late returns even if there is no tax owed."

Electronic filing requirement

The Department's published guidance states that "sales tax must be filed electronically" and directs dealers to file using the Department's online systems (eForms, Business Online Services, or Web Upload). Va. Code § 58.1-615(D) requires dealers filing consolidated returns and remitting by electronic funds transfer to file electronically using a medium prescribed by the Tax Commissioner, and grants the Tax Commissioner authority to waive this requirement if it creates an unreasonable burden on the dealer. The Department applies an electronic-filing requirement more broadly than the statute's express mandate for consolidated filers, and the Department's guidance indicates that dealers unable to file electronically may request a waiver.

Form ST-1 (effective April 2025)

The Department's guidance states that starting with the April 2025 filing period, all sales tax filers use Form ST-1, which replaced the prior Forms ST-9 (monthly general dealer return), ST-8 (quarterly general dealer return), ST-7 (occasional dealer return), and ST-6 (direct pay permit holder return). The change to Form ST-1 consolidated multiple return types but did not alter the underlying statutory due-date or filing-frequency rules.

Source: Va. Code § 58.1-615

Source: Va. Code § 58.1-616

Source: Va. Code § 58.1-8

Source: Va. Code § 58.1-635

Source: Virginia Department of Taxation – Retail Sales and Use Tax