Virginia Sales Tax Filing Update July 2019
What's changing in Virginia?
- Amazon began this collection on July 1, 2019.
- Etsy began this collection on July 1, 2019.
- eBay began this collection on July 1, 2019.
- Walmart began this collection on July 1, 2019.
- You can view the state's guidance document here.
How does this affect me?
If you sell through a Marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Virginia for sales on and after July 1, 2019 on your TaxJar Dashboard and on your Virginia Transactions page.
- If you have never set up a filing frequency for Virginia in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.)
- If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Virginia listed as a state where you have an upcoming monthly return due in those emails.
Do I need to register for a sales tax license in this state?
If all of your sales in Virginia are conducted through a marketplace facilitator’s platform, you generally do not need to register to collect Virginia sales tax.
If you also make sales to Virginia customers outside of a marketplace facilitator’s platform, like through your own website, and you meet the $100,000 or 200 transaction threshold for remote sellers, you will need to register to collect sales tax on your direct sales.
I have already registered for a license in Virginia but all of my sales are Marketplace-only sales. Should I cancel my existing registration?
Yes. For both out-of-state businesses and in-state businesses, if you sell exclusively through a marketplace facilitator, after July 1 your facilitator will take care of the tax for you, and you can no longer collect tax on those sales yourself.
- File your May and June returns as usual, then log into your online services account or file Form R-3 marking yourself as no longer liable for sales tax.
Do I need to collect taxes on my Virginia sales on other platforms? And, do I need to file a return?
If you sell through a marketplace facilitator and another venue, like your own website, and your direct sales to Virginia customers total more than $100,000 per year, or 200 or more transactions per year, then yes, you would need to collect taxes on other platforms and file a sales tax return.
- After July 1, you will be liable for Virginia sales tax only on your direct sales
I still need to file returns in Virginia. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
When you file your Virginia return, you'll include your Marketplace sales as a deduction.
- You'll also record any exemptions labeled "Other Exempt (Marketplace)" on the report as "Local Exempt Sales."
How does this affect my TaxJar Report for Virginia?
- Please note, as discussed above, Virginia includes Marketplace sales at each jurisdiction level.
- Therefore, our Report display that Marketplace sales are collected on a jurisdictional level by including them as a local deduction on each row. If you hover the amount in the Deduction column, you'll see "Other Exempt (Marketplace)" to denote the Marketplace sales.