Virginia Retail Sales and Use TaxEffective June 1, 2017, a change in Virginia Retail Sales and Use Tax Law requires any dealer owning inventory for sale located in Virginia to register for collection of the Retail Sales and Use Tax. House Bill 2058 and Senate Bill 962 (2017 Acts of Assembly, Chapters 51 and 808) provide that the ownership by a dealer of tangible personal property for sale located in Virginia is sufficient activity to require the dealer to register for the collection of the Retail Sales and Use Tax.

Previously, Virginia law did not specifically say that ownership of inventory in Virginia was sufficient contact with the Commonwealth to result in the need for a dealer with no other connection to Virginia to register with the Department of Taxation as a Retail Sales and Use Tax dealer.

The change in registration requirements will not affect the following:

  • In-state dealers
  • Out-of-state dealers who are already registered for the collection of Retail Sales and Use Tax
  • Out-of-state dealers who have no sales to Virginia customers

Tax Bulletin 17-3 provides guidance to taxpayers regarding the new law. The full text of the Tax Bulletin will also be available in the Laws, Rules, and Decisions section of the Department’s website.

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