If you sell, lease, distribute, or rent tangible personal property to customers in Virginia, or otherwise meet the definition of a “dealer,” and have “sufficient activity” in Virginia, you have nexus as defined in Virgina Code Section 58.1-612, and must register to collect and pay sales tax in Virginia.
For additional information on registering, filing and paying Virginia Retail Sales and Use Tax, please visit the Virginia Tax website.
In-State Dealers
Generally individuals and businesses making sales with, or at, one or more physical locations in Virginia (like an office, warehouse, fulfillment center, or similar place of business) must register to collect sales tax as an in-state dealer.
Out-of-State Dealers
Generally individuals and businesses located outside of Virginia, but with sufficient physical or economic presence to establish nexus in Virginia must register to collect sales tax as an out-of-state dealer. Starting July 1, 2019, this includes remote sellers or online retailers that make more than $100,000 in annual Virginia gross sales or 200 or more transactions to Virginia customers.
Marketplace Facilitators / Remote Sellers
Marketplace facilitators and remote sellers that have economic nexus in Virginia (i.e. more than $100,000 in annual Virginia gross sales or 200 or more transactions to Virginia customers) must register to collect and pay sales tax starting July 1, 2019. Generally, businesses without a physical location in Virginia that meet the economic nexus threshold should register as an out-of-state dealer, and businesses with a physical location should register as an in-state dealer. Marketplace facilitators must indicate that they are a marketplace facilitator when registering.
