This blog was last updated on November 19, 2025
Understanding sales tax in Virginia is essential for any business operating in or selling into the state. Virginia state sales tax is governed by clearly defined statutes and filing requirements, making it important for sellers to stay compliant with Virginia sales tax law and ongoing administrative guidance.
Virginia Sales Tax Rate
Virginia imposes a statewide sales and use tax rate of 4.3%. Localities may also levy a local option tax in addition to the state rate. Localities may also levy additional local option taxes on top of the state rate, creating combined rates that vary by jurisdiction. Businesses should ensure accurate Virginia sales tax calculation at the point of sale to avoid under- or over-collection.
What’s Taxable in Virginia?
Under Virginia sales tax rules, sales and use tax applies to tangible personal property and certain enumerated services. Sellers must collect and remit tax when selling taxable goods or services to Virginia customers.
Examples of taxable items include:
- Clothing
- Certain prewritten computer software
- Personal hygiene products (reduced rate)
- Food for home consumption (reduced rate)
- Rentals of tangible personal property
Sales Tax Nexus in Virginia
A seller is liable to collect and remit Virginia sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Virginia: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Virginia.
Virginia: Economic Nexus
Virginia enforces economic nexus for remote sellers. If your business has:
- Over $100,000 in sales, or more than 200 transactions in Virginia; you may be required to register for and collect sales tax.
- Learn more on the Virginia Tax Remote Sellers, Marketplace Facilitators, and Economic Nexus page.
Virginia Sales Tax Exemptions
Certain sales in Virginia are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
- Most services (unless Virginia statutes specify otherwise)
- Residential heating fuels
- Certain nonprescription drugs
- Select agricultural items
- Qualifying newspaper and magazines
Entity or Use Based Exemptions
Additionally, Virginia exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches
- Retailers selling for resale
- Agriculture processors
- Industrial production
- Government
How to Claim Sales Tax Exemption in Virginia
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST-12 Commonwealth of Virginia Sales and Use Tax Certificate of Exemption.
Additional guidance on acceptable exemption formats can be found here.
Virginia Filing and Remittance Requirements
Businesses must file returns and remit tax according to their assigned Virginia sales tax due dates, which are generally monthly but may vary based on sales volume and filing history.
Virginia offers multiple online methods for filing and remitting sales and use tax:
- Virginia Tax Business online services account
- Eforms
- Web Upload
- ACH Credit
All options may be found here: Remitting sales and use tax
Frequently Asked Questions
Does Virginia have sales tax holidays?
Yes, Virginia does offer sales tax holidays.
Are there any special point of sale fees in Virginia?
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Virginia imposes the following point of sale fees:
- Prepaid wireless fees
- Tire fee
- Local bag fees
Does Virginia apply sales tax to shipping charges?
Generally, shipping charges are exempt in Virginia if the charges are separately stated.
For sourcing sales tax, is Virginia origin or destination based?
Virginia is an origin-based state.
How to Register for a Virginia Sales Tax License?
Virginia businesses or individuals selling tangible personal property or certain services to Virginia consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here.
Further information from the Virginia Department of Taxation may be found here.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
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