Virginia Sales Tax: Registration, ST-4, Rates by Locality (5.3% to 7%) and the 20th Due Date
Virginia Sales Tax: Registration, ST-4, Rates by Locality (5.3% to 7%) and the 20th Due Date
If your business sells, leases or rents taxable tangible personal property in Virginia, or sells accommodations or certain taxable services, you must register as a dealer under Va. Code 58.1-612. You collect sales tax at the rate for the locality where the sale is made or the goods are received, and you file a return every month or every quarter, even in periods when you made no sales. Monthly returns are due on the 20th of the month after the reporting period.
This guide is informational content, not legal or tax advice. Rates, locality lines and procedures can change. Confirm current details with Virginia Tax, and consult a qualified CPA or attorney if your situation is complicated, such as multi-state sales, a marketplace business or a question about exemptions.
Who needs a Virginia sales tax account
Registration depends on what you sell, not on how your business is organized. A sole proprietorship, LLC, corporation or partnership that makes taxable sales in Virginia needs a dealer registration before it begins collecting tax. The same applies to a business that leases or rents taxable tangible property or sells accommodations. If you are not sure whether an item or service is taxable, check Virginia Tax before your first sale, not after.
How to register with Virginia Tax
Registration is completed online through Virginia Tax. Have the following ready before you start:
- The legal name of the business and its addresses
- The entity type and your FEIN
- The business start date
- Contact information and responsible party information, including the responsible party's Social Security number
- A NAICS code that describes your business activity
Registration returns a 15-digit sales tax account number and the Sales Tax Certificate of Registration, Form ST-4. The ST-4 must be displayed prominently at the registered location where customers can see it. If you need a replacement, you can print one from your online account or request one from Virginia Tax Customer Service at 804.367.8037.
The first two digits of your account number show the account type. In-state accounts begin with 10. Remote seller accounts begin with 12. Paper Form R-1 is only for cases where online registration is blocked, so plan on registering online.
Virginia sales tax rate by locality
Virginia does not have one sales tax rate. The rate depends on the locality where the sale is made or the goods are received. The table below reflects the rate groupings published by Virginia Tax.
| Rate | Localities |
|---|---|
| 7% | James City County, Williamsburg and York County (the Historic Triangle) |
| 6.3% | Charlotte County, Danville, Gloucester County, Halifax County, Henry County, Northampton County, Patrick County and Pittsylvania County |
| 6% | Central Virginia: Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent, Powhatan and Richmond city. Hampton Roads: Chesapeake, Franklin city, Hampton, Isle of Wight, Newport News, Norfolk, Poquoson, Portsmouth, Southampton, Suffolk and Virginia Beach. Northern Virginia: Alexandria, Arlington, Fairfax city, Fairfax County, Falls Church, Loudoun, Manassas, Manassas Park and Prince William. |
| 5.3% | All other localities (4.3% state rate plus 1% local rate) |
Two common mistakes show up here. First, do not charge 5.3% just because your business is in a smaller town if the sale is delivered into a 6% or 7% locality. Second, do not apply the 1% food rate to everything you sell. Food and personal hygiene items are taxed at 1% statewide, while most other taxable goods use the locality rate.
Motor vehicles, aircraft and watercraft are taxed at different rates. The DMV handles motor vehicle transactions. Use the rate and locality code lookup on Virginia Tax to confirm the rate for a specific address before you finalize a quote, invoice or point-of-sale setup, rather than relying on an old chart.
Virginia sales tax due date and filing
Virginia Tax assigns your filing frequency, either monthly or quarterly, based on your tax liability. Returns must be filed electronically through a Virginia Tax Online Services account, using eForms or Web Upload. A waiver request is available for filers who cannot file electronically. Amended returns are also submitted through eForms.
| Filing frequency | Due date |
|---|---|
| Monthly | The 20th day of the month after the reporting period |
| Quarterly | April 20, July 20, October 20 and January 20 |
A return is due even when you had no sales. For example, a monthly filer with no taxable sales in March still files a return for March by April 20. A late zero return still draws the $10 minimum penalty.
Late filing and late payment penalties
Late filing or late payment carries a penalty of 6% per month, with a maximum penalty of 30%. The minimum penalty is $10, and it applies even if no tax is owed. Interest is charged at the federal underpayment rate plus 2%. Penalties and interest add up quickly, so set a filing reminder for the 15th of each month or for the quarterly dates listed above.
Use tax on purchases
If you buy items without paying Virginia sales tax and then use them in Virginia, you owe use tax on those items. Report use tax on the same return as your sales tax. This matters most for business purchases of equipment, supplies or other taxable items that were bought from out-of-state vendors that did not charge Virginia tax.
Direct payment permits under Va. Code 58.1-624 exist for manufacturers, contractors and mine operators that store property in Virginia for use both inside and outside the state. Ask Virginia Tax about eligibility before you assume a permit applies to your business.
Remote sellers and marketplace sales
An out-of-state seller becomes an out-of-state dealer required to collect Virginia tax when it has more than $100,000 in annual Virginia gross sales or 200 or more transactions with Virginia customers. Remote sellers register for an account that begins with 12, as noted above.
Sales made through a marketplace facilitator generally do not require the seller to collect Virginia tax on those sales. Sales the seller makes outside the platform may still require collection. If you sell through both a marketplace and your own website, track the two channels separately so your return reflects only the sales you are responsible for.
Exemptions, resale certificates and the sales tax holiday
Sales for resale are not taxed, but you must document them. Use Form ST-10, the resale certificate, to show that a buyer is purchasing for resale. Keep the completed certificate in your records. Other exemptions also require documentation, so confirm the requirements on Virginia Tax before you apply an exemption to a sale.
Virginia has an annual sales tax holiday in August. Check Virginia Tax for the current year's dates and covered items each year, because the holiday dates are not the same from one year to the next. Local meals and admissions taxes are set by each locality, so check the city or county where you operate for those rates and filing rules.
Your first-sale checklist
- Confirm that your sales are taxable, including tangible goods, leases, rentals and accommodations.
- Gather your legal name, addresses, entity type, FEIN, start date, responsible party information and NAICS code.
- Register online with Virginia Tax and save your 15-digit account number and Form ST-4.
- Post the ST-4 prominently at each registered location.
- Look up the rate for every location where you sell or deliver goods.
- Set your filing calendar for the 20th of each month or the quarterly due dates.
- File on time every period, including periods with zero sales.
- Track use tax on untaxed purchases that you use in Virginia.
The local business license is a separate requirement
Sales tax registration does not give you a general business license. Virginia has no general statewide business license, and the State Corporation Commission forms entities but does not issue business licenses. The local business license is the Business, Professional and Occupational License (BPOL) tax under Va. Code 58.1-3700 et seq. Each city or county administers its own BPOL, usually through the Commissioner of the Revenue.
Not every locality levies a general BPOL tax. Va. Code 58.1-3704 allows a locality to levy none, and some counties, including Stafford, Rockingham, Bedford County, Washington County, Montgomery County, Louisa and Fluvanna, do not have a general county license. Towns can also displace the county tax. Do not assume a license is required or not required for your business, and check with your locality's Commissioner of the Revenue. Some regulated trades and professions also need a license from a state board, such as DPOR, the Department of Health Professions, VDACS or ABC.
Where to confirm details
- Virginia Tax: https://www.tax.virginia.gov/ (registration, filing, rate and locality code lookup, and holiday dates)
- Virginia Tax sales and use tax information: https://www.tax.virginia.gov/sales-and-use-tax
- State Corporation Commission, Clerk's Office: https://www.scc.virginia.gov/businesses/
Reminder: this guide is informational only and is not legal or tax advice. For decisions with significant money at stake, work with a qualified CPA or attorney licensed in Virginia.