State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Virginia (VA)

VA Sales Tax - Name of Tax and General Application:

Virginia imposes a tax on the business of selling tangible personal property at retail. This tax is known as a "sales tax". In addition a tax is imposed on use, consumption or storage of tangible personal property in the state. This tax is known as a "use tax" and only applies where sales tax has not been paid.

VA Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Virginia imposes nexus on an out-of-state vendor who regularly or systematically solicits sales using advertising that is broadcast from within the state, advertises in newspapers or periodicals publicized in Virginia, or advertises by direct mail that is regular or seasonal.

VA Local Tax - Do Localities Impose Tax?

Yes, Virginia imposes local sales tax.

VA Resale Certificate Renewal Agreements:

Sales for resale are not taxable and are excluded from the taxable definition of "retail sale." An exemption certificate is required.

VA Resale Certificate Renewal Periods

Certificates are valid as long as the business remains in operation or until revoked.

VA Statute of Limitations

Three years from the date taxes were due. Six years if no return was filed or if a fraudulent return was filed.