State Sales Tax Rates

State Sales Tax Rates Virginia State Sales Tax 2014

Virginia Sales Tax 2014
Virginia State Sales Tax for 2014 Maximum Municipal Sales Tax

4.00%

1.00%

What is the Virginia Sales Tax?

The Virginia state sales tax is 4%, with a maximum possible sales tax (including local and municipal sales taxes) of 5%.

Local governments in Virginia are allowed to add a local sales tax of up to 1 percent on top of the VA state sales tax for all qualifying sales in their jurisdiction - so the actual sales tax paid on any purchase in Virginia can be up to 5% depending on location.

In addition to a 1% local option sales tax, Virginia sllows county governments to charge up to 4% "Food and Beverage Tax" on prepared meals served within their boundaries, while cities can charge up to 6.5%. Groceries are subject to a reduced 1.5% state tax (plus up to 1% in local sales taxes). Virginia also collects a use tax following the same percentage guidelines as the sales tax on all purchases made out of state or from mail-order catalogs exceeding $100 per year. Customers are expected to complete and submit a CU-7 Consumer Use Tax form to the Virginia Department of Revenue between January 1 and May 1 with payment for any use taxes owed during the previous year.

What sales are exempt from the Virginia Sales Tax?

Virginia Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Virginia completely exempts prescription drugs, and non-prescription drugs from the Virginia state sales tax.

Virginia sets a special sales tax rate for unprepared food and groceries (at 2.5%). Like many other states, Virginia levies a special sales tax on prepared food from restaraunts or other locations. The Virginia restaraunt sales tax is 5%.

Generally, the Virginia sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Virginia sales tax if they provide the seller with a Virginia Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Virginia), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Virginia handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Virginia sales tax information on Tax-Rates.org
http://www.tax-rates.org/Virginia/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html