What Are the Virginia Sales Tax Nexus Requirements?

Joshua Rubin
October 30, 2020

The Virginia sales tax nexus requirements changed in 2019, following the South Dakota v. Wayfair, Inc. decision. The Commonwealth passed its own legislation to specify how remote sellers or marketplace facilitators have economic nexus, but it essentially opted to replicate the specifications outlined in the Wayfair decision – as did many other states. Even so, we have highlighted some of the larger points of the Virginia sales tax nexus changes.

Enforcement date:
July 1, 2019.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous or current calendar year.

Included transactions/sales:
Retail sales of tangible personal property delivered into the state.

When You Need to Register Once You Exceed the Threshold:
July 1.

Summary: The Virginia Department of Taxation requires remote sellers and marketplace facilitators that meet the new economic nexus standards to register with Virginia Tax starting July 1, 2019. Businesses can be a “remote seller,” a “marketplace seller,” a “marketplace facilitator,” or any mix of the three classifications, the department states. 

Even though Virginia adopted the same requirements as South Dakota in the wake of the Supreme Court case, businesses that operate in Virginia should still ensure that they are fully up-do-date and compliant with all sales tax nexus law.

Virginia Sales Tax Resources: Contact one of our team members to learn more about how the Virginia nexus requirements could impact you. Additionally, see how other states were impacted by looking at our interactive sales tax nexus map.

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