Virginia joins crowd in demanding sales tax collection
Virginia sales tax collection
Virginia has become the latest state to start requiring large online retailers to begin sales tax collection from Virginia residents. This new law went into effect as of September 1st, 2013. The Virginia state sales tax of 5.3% now applies to out-of-state sellers that maintain a distribution center, warehouse, fulfillment center, office, or similar location in Virginia that facilitates the delivery of tangible personal property.
Amazon for example now needs to collect sales taxes from Virginia residents because it has two large distribution centers in the state. This law does have an exemption for retailers that have less than $1 million a year in revenue.
Lucinda Rowlands has been the general manager at Zip2Tax since 2010. She has extensively researched sales and use tax regulations in order to help small businesses navigate complicated tax rules.