How to File Sales Tax in Virginia

If you’re selling digital services and products to customers in Virginia, then you might be liable for Virginia’s sales tax. We’ve compiled over 10 years of experience in tax compliance to create this comprehensive guide, which covers how to file sales tax returns online and stay compliant with the state's regulations.

We’ve scoured the Virginia Department of Taxation website to provide you with all the necessary information about sales tax for businesses in one convenient place.

How to file sales tax returns in Virginia

Sales and taxes should be reported and filed using US dollars. If you’ve made any transactions in Virginia in a different currency, be sure to convert those to USD using official currency exchange rates.

When to file and pay

The timing for filing your return depends on your average monthly sales volume, and the Virginia Department of Taxation will assign you a filing frequency (monthly or quarterly) after you register for a Virginia sales tax permit. State governments generally ask larger businesses to file more frequently.

Virginia sales tax returns and payments must be remitted at the same time; both have the same due date. The Virginia Department of Taxation requires all sales tax filing to be completed by the 20th day of the month following the assigned filing period. Due dates falling on a weekend or holiday are adjusted to the following business day.

VA sales tax filing deadlines

Monthly Filers:

Reports are due on the 20th of the month following the reporting month. For example, the April sales tax report is due May 20.

Quarterly Filers:

Reports are due on the 20th of the month following the reporting period.

• April 20, for first quarter ending March 31
• July 20, for second quarter ending June 30
• October 20, for third quarter ending September 30
• January 20, for fourth quarter ending December 31

Important note: Zero returns

Even if you didn’t make any sales in Virginia during your reporting period, you must still file a "zero return." This follows the exact same process as a normal return, just with no tax liability to report. Failure to submit a zero return can result in penalties and interest charges.

How to prepare your Virginia sales tax return

Before you start working on your sales tax return, you'll need to collect all the sales information for your tax period. The Virginia Tax online system will guide you, but generally, you'll need the following details:

Sales transactions

Every business needs to know how much it sold—both in gross sales and in taxable sales—and to whom the business sold it. You are also required to collect and pay sales tax for any personal property sold to residents of Virginia, with certain exceptions (e.g., if the buyer has a resale certificate or the item isn't considered taxable).

In addition to your gross Virginia sales (total sales revenue from buyers in Virginia, regardless of taxability), filing a sales tax return requires the following information:

• Taxable sales by type: Different types of products are subject to different tax rules and amounts.
• Non-taxable sales by type: Examples include sales to resellers, non-taxable labor, and certain non-taxable foods.
• Deductions: This might include items such as delivery charges.
• Total collected sales tax: The total amount of sales tax you collected from customers during the filing period.

If a business has employees, an office, or a warehouse located in Virginia and is selling taxable goods and/or services, it must collect sales taxes, file returns, and pay the appropriate amount to the state.

Local sales tax rates

In addition to the state sales tax, Virginia also has local sales tax rates that vary by city and county. You must collect the correct combined state and local rate for each sale based on the buyer's location. This can make preparing a Virginia sales tax return complex.

How to complete and file a Virginia sales tax return

The final step is to file and remit tax. The Virginia Department of Taxation requires online filing. You can access and complete Form ST-9 online. If electronic filing causes your business an undue hardship, you can submit an Electronic Filing Waiver Request. All waivers must be renewed annually.

You may file directly with Virginia Tax by visiting their site and entering your transaction data manually. This is a free service, but preparing Virginia sales tax returns can be time-consuming — especially for larger sellers.

How to pay

Tax payments must be in US dollars and can be made directly at the time of filing. Once you’ve completed the return, you’ll remit the total calculated sales taxes.

Payment options typically include:

• Electronic Funds Transfer (EFT)
• Credit card (may incur a processing fee)
• Check
• Money order

Timely filing discount in Virginia

Virginia Tax offers a discount for businesses with a sales tax liability of less than $20,000. The discount applies only to state taxes, not on local or regional taxes.

For more information, see section eight of worksheet ST-9 of the Virginia retail sales and use tax return.

Late filing penalties and interest

Hopefully, you won't need to worry about this section because you're filing and remitting Virginia sales tax on time. However, in the real world, mistakes happen.

If you miss a sales tax filing deadline, file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.

If you miss a Virginia sales tax filing deadline due to unavoidable circumstances like weather or an accident, you might be eligible for an extension from the Virginia Department of Taxation. Be prepared to provide evidence to support your request. Furthermore, if you are considering buying a business, it's crucial to contact Virginia Tax beforehand to check its sales and use tax standing. You will be responsible for any existing tax debts after the purchase is complete.

Getting third-party help with sales tax filing

While you can file directly with Virginia Tax, manual filing can be difficult, especially for larger businesses with many transactions across different localities. Outsourcing to experts like accountants, bookkeepers, or sales tax automation companies is common. They understand Virginia sales tax law and can help you navigate its complexities.

Quaderno offers a service to simplify your sales tax compliance. Besides generating detailed tax reports with all necessary data, Quaderno can handle the filing process for you. By connecting to your sales data, Quaderno manages the submission of your sales tax returns to Virginia Tax, ensuring timely and accurate filing. This saves time and provides peace of mind.

For further reading that will help you stay compliant and successful as a remote seller, check out our Business Guide to Sales Tax in Virginia. Quaderno can help simplify the sales tax returns process by generating tax reports that provide all the necessary data to accurately fill out your forms.

Sales tax filing in other states

• Arizona Sales Tax Filing Guide
• California Sales Tax Filing Guide
• Colorado Sales Tax Filing Guide
• Florida Sales Tax Filing Guide
• Georgia Sales Tax Filing Guide
• Illinois Sales Tax Filing Guide
• Massachusetts Sales Tax Filing Guide
• New Jersey Sales Tax Filing Guide
• New York Sales Tax Filing Guide
• North Carolina Sales Tax Filing Guide
• Pennsylvania Sales Tax Filing Guide
• Texas Sales Tax Filing Guide
• Washington Sales Tax Filing Guide