If you purchased merchandise from retailers without paying sales tax you must pay the sales tax directly to the Department. When retail sellers do not collect sales tax, it becomes the purchaser’s responsibility to pay the sales tax (i.e., consumer’s use tax). Report any sales tax amount you owe on your return. If you do not owe sales tax, mark the corresponding oval on your form.
In general, the Virginia sales and use tax applies to all purchases, leases, or rentals of tangible personal property. Regardless of the source of the purchase, if you were not charged sales tax and your purchases are shipped or brought into Virginia, you are required to pay the use tax. This includes purchases made through websites, shopping networks, mail order catalogs*, and any out-of-state retailers. Taxable items include, but are not limited to, food, furniture, carpets, clothing, linens, appliances, computers, books, CDs, DVDs, artwork, antiques and jewelry. Separately stated shipping and delivery charges are not taxable, but “handling” and any combined “shipping and handling” charges are taxable. Nonprescription drugs and proprietary medicines purchased for the cure, mitigation, treatment, or prevention of disease in human beings are exempt from the tax.
*If total mail order catalog purchases are under $100, you do not need to report the tax for those purchases.
The general sales tax rate for Virginia is 5.3% (4.3% state tax and 1 % local tax).
•Northern Virginia and Hampton Roads regions - There is an additional 0.7% state tax imposed in the localities that make up Northern Virginia and Hampton Roads, making the rate in these areas 6% (5% state tax and 1% local tax).
•Historic Triangle Region - There is an additional 1.0% state tax imposed in the localities that make up Historic Triangle. These localities are within the Hampton Roads Region, making the rate in these areas 7% (6% state tax and 1% local tax).
•Sales of eligible food items are subject to a reduced sales tax rate of 2.5% (1.5% state tax and 1% local tax).
7% General Rate--Apply the 7% rate to items delivered to locations in Historic Triangle regions:
Historic Triangle Region
•James City County •York County •Williamsburg City
6% General Rate
Apply the 6% rate to items delivered to locations in the Hampton Roads and Northern Virginia regions:
Hampton Roads Region
•Chesapeake City •Franklin City •Hampton City •Newport News City •Norfolk City
•Poquoson City •Portsmouth City •Suffolk City •Virginia Beach City •Isle of Wight County •Southampton County
Northern Virginia Region
•Alexandria City •Fairfax City •Falls Church City •Manassas City •Manassas Park City
•Arlington County •Fairfax County •Loudoun County •Prince William County
5.3% General Rate
Apply in all other Virginia cities and counties.
2.5% Food For Home Consumption Tax Rate
The 2.5% rate applies in all Virginia cities and counties.
You can use the table below to estimate the tax you owe for purchases under $1,000. For purchases of $1,000 or more use the worksheet at the end of this section.
Visit www.tax.virginia.gov for more information. Enter the amount of Consumer Use Tax you owe on Form 760, or file Form CU-7.