Virginia Sales & Use Tax — Form ST-9 Monthly Return

Determine whether the business has physical or economic nexus in Virginia (effective July 1, 2019 for economic nexus). Physical nexus includes any office, warehouse, inventory (including Amazon FBA), employees, or delivery vehicles in-state. Economic nexus is triggered by either $100,000 in gross Virginia sales OR 200 transactions into Virginia in the current or prior calendar year (Va. Code §58.1-612(C)). If the business sells through a marketplace facilitator (Amazon, Etsy, etc.) that meets nexus thresholds, the facilitator collects and the seller is relieved of that obligation. If nexus exists and the seller is not yet registered, registration must be completed through Virginia Tax Online Services before the first taxable sale.

Assign the correct rate to each transaction. Virginia has three rate tiers: 5.3% (standard statewide), 6.0% (Northern Virginia — Arlington, Fairfax, Loudoun, Prince William counties and associated cities; and Central Virginia/Richmond metro), and 7.0% (Hampton Roads — Chesapeake, Hampton, Newport News, Norfolk, Virginia Beach, and surrounding localities). For shipped goods, Virginia uses destination-based sourcing — the buyer's delivery address governs the rate. For over-the-counter pick-up sales, the seller's location rate applies. Grocery food (not prepared food) is taxed at a reduced 1% (local portion only) effective January 1, 2023 per HB 90/SB 451. SaaS is taxable at the full applicable rate per Virginia Tax Ruling PD 19-55.

Audit exemption certificates on file for any sales claimed as exempt. Virginia requires valid certificates to include the purchaser's name and address, Virginia sales tax registration number (for resale claims), nature of exemption, description of property, signature, and date. Key certificate forms: ST-10 (general resale/exempt org), ST-10A (manufacturing), ST-11 (government), ST-12 (industrial manufacturing), ST-13 (contractor), ST-13A (government contractor). Certificates must be retained for 3 years from the last sale under each certificate. If certificates are missing or deficient, the seller remains liable for the tax.

Prepare the monthly Form ST-9 (Retail Sales and Use Tax Return) covering all taxable sales in the period. All Virginia registrants file monthly — there are no quarterly or annual options. The return captures gross sales, deductions (exempt sales, resale, etc.), taxable sales by rate tier, and total tax due. The dealer's discount (1.6% of tax on the first $62,500 of taxable sales, capped at approximately $53/month) is deducted if the return is filed and paid on time. If the business made purchases on which Virginia sales tax was not collected and those items are used in Virginia, consumer use tax is also reported on the ST-9 (or separately on Form ST-7). Electronic filing is required for all registrants via Virginia Tax Online Services.

Submit Form ST-9 electronically through Virginia Tax Online Services and remit payment by the 20th of the month following the return period (e.g., January return due February 20). Virginia does not require mid-month prepayments for large filers. Late filing or payment triggers a penalty of 6% of tax due per month up to 30%, plus interest at the federal underpayment rate plus 2% (Va. Code §58.1-635). Retain filed returns, payment confirmations, all sales records, and exemption certificates for a minimum of 3 years (the standard Virginia audit look-back period). Document the dealer's discount calculation and any amended returns filed.