If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Virginia, the first step is visiting the tax department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Virginia?
In general, all sales, leases, and rentals of tangible personal property in or for use in Virginia, as well as accommodations and certain taxable services, are subject to sales tax, unless an exemption is established. Groceries and certain hygiene items are subject to a reduced sales tax rate of 2.5%.
Virginia Sales Tax Rate
The sales tax rate in Virginia is 5.3%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Virginia Sales Tax
In Virginia, acquire a seller’s permit by following the tax department’s detailed instructions for registration:
- Register for an account on the Virginia tax department website.
- Fill out the sales tax registration form.
- There is no fee to apply. You will receive your 15-digit sales tax account number and your sales tax certificate after you fill out the form.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Virginia, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.