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. Importantly, for purposes of determining whether a marketplace facilitator meets this threshold, both direct sales made by the facilitator (sales of its own inventory) and retail sales it facilitates for third-party sellers are aggregated. This aggregation of sales is required under Va. Code § 58.1-612.1(G).

Clarification for Marketplace Sellers: By contrast, when calculating whether a marketplace seller itself is required to register and collect sales tax in Virginia, only direct sales made by the seller to Virginia customers (not sales made through a registered facilitator) count toward the seller’s own $100,000/200-transaction threshold. Sales facilitated and taxed by marketplace facilitators are excluded from the seller’s calculation, as stated in Va. Code § 58.1-612.1(H). See the 'Economic-nexus threshold for remote sellers' section above for details about the seller-specific rule.

A marketplace facilitator is deemed a dealer and must collect tax on all transactions it facilitates once it meets either threshold. Marketplace sellers may not collect sales tax on transactions made through a marketplace facilitator's marketplace; that obligation rests solely with the facilitator. These requirements became effective July 1, 2019.

Source: Va. Code § 58.1-612.1(G), (H)

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

Direct answer: Virginia applies different local sales tax sourcing rules depending on whether the seller is an in-state (Virginia-based) dealer or a remote/out-of-state dealer. For in-state dealers, local tax is sourced to the place of business where the order is first taken (origin-based sourcing). For remote or out-of-state sellers (including marketplace facilitators and remote sellers meeting economic nexus), local tax is sourced to the location where the product is delivered to the customer (destination-based sourcing).

Why: The governing regulation, 23 VAC 10-210-2070, states that for in-state dealers (those with a place of business in Virginia who receive or accept orders in Virginia for taxable sales), the "situs of the sale for local sales tax purposes shall be the place of business of the dealer from which the sale is made or the place of business that first takes the order." For remote or out-of-state dealers who do not have a place of business in Virginia and are required to collect because of economic nexus or marketplace facilitator rules, the local tax is imposed based on the delivery location within Virginia. Guideline 20-43, effective July 1, 2019, reaffirms that marketplace facilitators are subject to the same destination-based sourcing as remote sellers if they lack a Virginia place of business for the transaction.

Source support:

• Authority source: 23 VAC 10-210-2070 explicitly establishes the rules for situs of sale and sourcing for both in-state and out-of-state sales.
• Supporting source: Ruling of the Tax Commissioner, PD 18-3 (March 13, 2018) confirms the rule with examples. For example, PD 18-3 details a scenario where an in-state dealer with multiple locations sources sales to the first location taking the order, and a remote seller sources to the destination locality.
• Guideline 20-43 (effective July 1, 2019) details destination sourcing application for remote sellers and marketplaces, affirming that marketplace facilitators are treated like remote sellers for sourcing purposes.

Source: 23 VAC 10-210-2070 Source: Virginia Ruling of the Tax Commissioner, PD 18-3 (2018) Source: Guideline 20-43 (2019)

Caution / review status: Not yet human confirmed. Practitioners should rely on the cited regulation for authoritative sourcing. The distinction between origin and destination applies per dealer status as defined above.

Direct answer: The general statute of limitations for the Virginia Department of Taxation to assess additional sales and use tax is three years from the due date of the return or the date the return was filed, whichever is later. However, this period is extended to six years in cases involving a false or fraudulent return with intent to evade tax, or where no return has been filed, or when a dealer fails to apply for registration as required.

Why: Virginia Code § 58.1-634 establishes these assessment limitations. By default, the period is three years. If the Department of Taxation finds that a dealer has filed a "false or fraudulent return with the intent to evade the tax," has not filed a return, or has failed to register as a dealer, the assessment period is extended to six years for those periods. There is no unlimited assessment period—the maximum lookback is six years in these circumstances. This rule also covers failures to register as a "dealer" as defined under Va. Code § 58.1-612.

The Department has confirmed in administrative guidance that when a dealer never files a return, the Department may assess tax up to six years after the due date for the period that should have been reported. The same six-year period applies when both fraudulent returns and non-filing are present.

Source support: Authority Source: Va. Code § 58.1-634 sets the three-year general period and six-year period for fraud, failure to file, or failure to register. Supporting Source: Virginia Tax Ruling 87-9 interprets and affirms the application of the six-year period regarding unfiled returns.

Source: Va. Code § 58.1-634 Source: Virginia Tax Ruling 87-9 (May 7, 1987)

Caution / review status: Not yet human confirmed. Always check the statute in force for the tax period at issue, as assessment periods may be amended.

Virginia allows certain qualifying purchasers to apply for a direct payment permit, which enables them to self-assess and remit use tax directly to the Department of Taxation rather than pay sales tax to vendors at the time of purchase.

Eligibility and Statutory Authority Under Va. Code § 58.1-624, the Tax Commissioner may issue a direct payment permit to a manufacturer, mine operator, public service corporation, or any person who stores tangible personal property in Virginia for use both inside and outside the Commonwealth, particularly when the ultimate use is not determinable at the time of purchase. The statute specifies that permits are issued only upon application to and approval by the Tax Commissioner. There is no standardized application form published as of 2026-06-16; applicants must contact the Department of Taxation to initiate the process. Source: Va. Code § 58.1-624

Permit Use, Dealer Relief, and Reporting Obligations Once a direct payment permit is granted, the holder may purchase covered items without payment of sales tax to the dealer. Permit holders must provide a copy of their permit to vendors to relieve vendors of the obligation to collect and remit tax on those sales. The permit holder is then responsible for filing returns and reporting all taxable use, consumption, or storage of property in Virginia. Returns must be filed monthly and tax remitted by the 20th of each month, covering the prior month’s activity. The statute requires that local tax allocation be handled so that no locality loses revenue, but does not establish procedural details; practitioners should coordinate with the Department for specifics. Source: Va. Code § 58.1-624

Permit Duration and Limitations A direct payment permit remains valid until surrendered by the taxpayer or cancelled by the Tax Commissioner. The statute does not provide further details on this process. Not all businesses qualify; Department Rulings 96-274 and 15-106 explain that contractors and certain service businesses using property to improve real property do NOT qualify for permits. Only the entities listed in the statute are eligible. Source: Virginia Tax Ruling 96-274 (1996) Source: Virginia Tax Ruling 15-106 (2015)

Current Filing Methods and Guidance Permit holders must use the most current return forms and filing methods published by the Department of Taxation. As forms and filing procedures may change, practitioners should consult the Department’s website for the latest reporting requirements and deadlines. Source: Virginia Department of Taxation – Sales and Use Tax Forms & Filing

Source: Va. Code § 58.1-624 Source: Virginia Tax Ruling 96-274 (1996) Source: Virginia Tax Ruling 15-106 (2015) Source: Virginia Department of Taxation – Sales and Use Tax Forms & Filing

In Virginia, transportation or delivery charges are exempt from retail sales and use tax only if they are separately stated on the invoice or bill to the customer. Handling charges are always taxable, and any combined shipping and handling charge renders the entire amount taxable.

Legal Framework:

• Virginia Code § 58.1-609.5(3) creates an exemption for “transportation charges separately stated.” These must be for delivery from the seller to the purchaser after the sale of tangible personal property has occurred.
• The implementing regulation, 23 VAC 10-210-6000(B), clarifies that “transportation or delivery charges” refer only to bona fide delivery (such as postage or transportation by common carrier), and do NOT include handling charges. If transportation is not separately stated or is combined with handling or other services, the total is taxable.
• Tax Department Ruling 99-289 explains that using the phrase “shipping and handling,” even for charges that represent transportation, disqualifies the exemption and subjects the full amount to tax. Ruling 00-173 further states that to be exempt, a separately stated shipping charge must reflect the actual cost to the seller; if it is marked up, it is fully taxable.

Practical Steps for Sellers:

• Itemize shipping/delivery and handling separately on invoices; never combine them.
• Stated shipping/delivery must represent the actual charge paid by the seller to the carrier or third-party shipper.
• If a combined “shipping and handling” charge appears—or shipping is marked up—the full charge must be included in the taxable base.

Consumer Use Tax Context:

• Official Form CU-7 and its instructions confirm that separately stated shipping charges are excluded from the consumer use tax base, while combined “shipping and handling” charges are subject to tax.

Source: Va. Code § 58.1-609.5(3) Source: 23 VAC 10-210-6000(B) Source: Virginia Ruling of the Tax Commissioner 99-289 Source: Virginia Ruling of the Tax Commissioner 00-173 Source: Virginia Form CU-7 and Instructions

Caution / review status: Not yet human confirmed.

Virginia recognizes drop shipment arrangements in which an out-of-state retailer (the purchaser) instructs a Virginia-based seller (drop shipper) to deliver goods directly to a Virginia customer. For the Virginia seller to treat the sale as a nontaxable sale for resale, the drop shipper must obtain and retain a valid exemption certificate from the out-of-state retailer.

Acceptance of Out-of-State Resale Certificates: Virginia will accept an out-of-state resale certificate instead of the Virginia Form ST-10 if that certificate substantially complies with Virginia’s requirements. Ruling of the Tax Commissioner No. 92-94 (1992) expressly states: “You may accept a resale certificate from an out-of-state dealer, provided it contains all the information required by Virginia regulation and statute.” The critical requirement is that the certificate must, in substance, provide the seller with documentation that the sale to the out-of-state retailer is for resale, and include the core statutory elements.

Required Certificate Elements under Va. Code § 58.1-623: Per the statute, the exemption certificate (whether Virginia ST-10 or a home-state equivalent) must include:

• The name and address of the purchaser;
• The purchaser's certificate of registration (in any state);
• A description of the kind of property being purchased;
• A statement that the tangible personal property is being purchased for resale;
• The signature of the purchaser, with date and the title or capacity of the signer.

Good faith acceptance of a properly completed certificate relieves the Virginia drop shipper of liability to collect sales tax from the out-of-state retailer. However, if the certificate is incomplete, inconsistent on its face, or not accepted in good faith, the Virginia seller may be held liable.

Regulatory Context for Drop Shipments: Regulation 23VAC10-210-780 explains the mechanics for exempting certain sales in interstate or foreign commerce: goods sold for resale and delivered to out-of-state purchasers for delivery within Virginia are exempt so long as the documentation requirements of Va. Code § 58.1-623 are satisfied. Although the regulation is not drop-shipment-specific, the Department and Ruling 92-94 apply it to drop shipment transactions.

Consumer Obligation: If the out-of-state retailer does not have nexus and is not required to collect and remit Virginia tax, the Virginia customer receiving the goods owes use tax on the transaction. The burden shifts to the consumer only where there is no tax collection requirement imposed on the out-of-state seller.

Source: Virginia Ruling of the Tax Commissioner 92-94 (1992) Source: Va. Code § 58.1-623 Source: 23VAC10-210-780

Caution/review status: Not yet human confirmed. Taxpayers relying on out-of-state certificates must ensure full compliance with the detailed requirements of Va. Code § 58.1-623; the Department may scrutinize certificates on audit and deny exemption if documentation is lacking or defective.

Virginia maintains an annual three-day sales and use tax holiday, spanning from 12:01 a.m. on the first Friday in August through 11:59 p.m. on the following Sunday. During this period, specified categories of goods are exempt from sales and use tax if they meet explicit eligibility criteria and price limits set by statute and official guidance.

Applicable Dates and Effective Period The holiday is established by Va. Code § 58.1-639.1 and is currently authorized through July 1, 2030, due to legislative extension effective July 1, 2025 (2024 Acts of Assembly, Ch. 628 & 663). The holiday occurs annually: 12:01 a.m. first Friday in August through 11:59 p.m. the following Sunday.

Covered Items and Price Limits

• School supplies: $20 or less per item
• Clothing and footwear: $100 or less per item
• Energy Star™ & WaterSense™ items for noncommercial, personal use: $2,500 or less per item
• Hurricane & emergency preparedness items:
• Portable generators: $1,000 or less
• Gas-powered chainsaws: $350 or less; chainsaw accessories: $60 or less
• Other qualifying emergency supplies such as batteries, flashlights, first aid kits, bottled water, smoke detectors, fire extinguishers, and more, each with a $60 or less price cap (full, current list per Va. Code § 58.1-639.1 and Department guidance)

This list is cumulative: each category is narrowly construed, and only items meeting the prescribed criteria are eligible. Non-qualifying items, or those above the price thresholds, are taxable even if purchased concurrently.

Dealer Obligations and Procedures

• Dealers must not collect sales/use tax on eligible items during the window.
• Separately stated shipping/handling charges may be excluded from the sale price; combined shipping-and-handling makes the total taxable.
• Dealers must retain documentation for exempt transactions and report total exempt holiday sales within regular returns (there is no separate or special return).
• Exchanges, returns, rain checks, and layaway sales are subject to specific rules described in Dept. of Taxation guidance and Tax Commissioner rulings (e.g., purchases paid for during the holiday are exempt even if delivered later; post-holiday exchanges/returns may require tax adjustments).
• Dealers may not advertise absorbing the tax on nonqualifying items and must adhere strictly to statute and published guidance.

Primary Authority and Recent Guidance Source: Va. Code § 58.1-639.1 Source: Virginia Tax – 2026 Sales Tax Holiday Guidance Source: Virginia Tax Commissioner Ruling 15-149

Caution / Review Status: Not yet human confirmed. Section is current as of 2026-06-17; statute in force through July 1, 2030, with categories and price limits as described above. Practitioners should consult Department guidance each year for specific eligible-item lists.

General Statute of Limitations Virginia law provides a general three-year statute of limitations for the Department of Taxation to assess additional sales or use tax against a dealer. The period is calculated from the later of (1) the due date of the return or (2) the actual date the return was filed. This limitation applies to all dealers who have properly filed returns as required by law. Source: Va. Code § 58.1-634

Exceptions – Fraud, Evasion, and Failure to File If a dealer files a false or fraudulent return with the intent to evade tax, fails to file a return, or fails to register as a dealer when required, the statute of limitations extends to six years from the later of the return due date or filing date. There is no unlimited or perpetual assessment period—Virginia law sets the maximum lookback at six years even for these circumstances. These exceptions are specifically enumerated; simple understatements without fraud do not trigger the extension. Source: Va. Code § 58.1-634

Waivers and Consent for Assessment Period Extension Virginia law authorizes a dealer and the Department of Taxation to agree, in writing, to extend the statute of limitations for assessment for a specified period. This is typically executed via a written waiver or agreement signed by both the dealer and the Department. When such a waiver is executed, assessment may be made at any time prior to the end of the agreed extended period. Source: Va. Code § 58.1-634(B)

Voluntary Disclosure Agreements (VDA) – Impact on Lookback Virginia does not set a statutory VDA lookback in the sales tax statute but generally limits the assessment period as part of the VDA terms. The standard practice, as acknowledged by the Department in public guidance, is to limit assessments under a VDA to three or four prior years, provided the taxpayer was not previously registered or contacted. These terms must be negotiated during the VDA process. Statute of limitations protections begin after registration and full compliance. Source: Virginia Department of Taxation – Voluntary Disclosure Program

Summary Table of Assessment Periods

• Normal returns (filed): 3 years
• Fraud, evasion, no return, or non-registration: 6 years
• Written consent (waiver): Agreed extended period
• Voluntary disclosure: As set by VDA terms; generally 3–4 years

Source: Va. Code § 58.1-634 Source: Virginia Department of Taxation – Voluntary Disclosure Program

Caution / Review Status: Not yet human confirmed. All statutory interpretations should be verified for the relevant periods at issue. Voluntary disclosure outcomes are subject to Departmental negotiation and written agreement.