Hi zndc,
You only have to charge sales tax to customers located in Virginia (if
that is the only state where your business has a presence).
VIRGINIA DEPARTMENT OF TAXATION
Is a dealer from another state required to collect the tax on sales to
customers in Virginia?
"An out-of-state seller must register with the department and collect
the tax on sales to Virginia customer if the seller has sufficient
nexus, or contact, with Virginia. If the seller does not have nexus
with Virginia, there is no requirement to collect the tax or register
for a use tax account."
http://www.tax.virginia.gov/site.cfm?alias=BusinessFAQ2#sales
Likewise, business in Virginia are not required to collect tax from
out-of-state customers if they have no business presence in their
states (or countries).
Online Services for Businesses:
http://www.tax.virginia.gov/site.cfm?alias=BusinessOnlineServices
Leases and Rentals
Does sales tax apply to equipment rentals?
"The sales tax generally applies to the lease or rental of any
tangible property. However, if you rent equipment with an operator,
the tax will not apply."
http://www.tax.virginia.gov/site.cfm?alias=BusinessFAQ2#sales
Register a new business:
Retail Sales and Use Tax
http://www.tax.virginia.gov/site.cfm?alias=BusinessOnlineServices
Virginia Department of Taxation:
http://www.tax.virginia.gov/site.cfm?alias=busforms
Once your business is registered, you will be able to file the sales tax online.
VATAX / VEC Online is available to all businesses registered with the
Virginia Department of Taxation or the Virginia Employment Commission.
You must have a valid Virginia state tax ID number or VEC account
number.
https://www.business.tax.virginia.gov/BusinessLogin.jhtml
You can contact the Department of Taxation with questions concerning
your specific situation.
Business Phone Numbers
Customer Service (Corporate,Sales and Use, Employer withholding,
litter tax) 804-367-8037
http://www.tax.virginia.gov/site.cfm?alias=Contacts#Businesses
Additional Links of Interest:
"The obligation to pay sales tax is determined by the location of the
buyer, not the seller. If a business does not have a physical presence
in a particular state, such as a store or warehouse, it is not
required to collect sales tax for sales from customers in that state."
http://www.nolo.com/lawcenter/ency/article.cfm/ObjectID/87F6DD43-E6F2-4DFE-BCDB8E2E85DFF80B/catID/806B7BA0-4CDF-4221-9230A3135E2DF07A
Q: Do I have to charge sales tax on orders placed on my Web site? What
if I have international customers?
A: "Online companies with a physical presence, or nexus, in a state
are required to collect and report taxes on sales made to customers
living within that same state. For example, if your online business is
based in California, you must collect and report sales tax derived
from fellow Californians making purchases on your site."
http://www.entrepreneur.com/article/0,4621,307444,00.html
I hope this helps. If you have any questions, please post a
clarification request *before* closing/rating my answer and I'll be
happy to reply.
Thank you,
hummer
Google Search Terms Used:
virginia sales tax |
Clarification of Answer by
hummer-ga
on
18 Feb 2005 08:48 PST
Hi zndc,
Most everything can be found on the Virginia Department of Taxation
website but you can always give them a call at 804-367-8037 if you
have any questions. I cut and pasted relevant sections of text in my
answer, but it is important to click on the links posted to read all
details.
- "If so, how much and for which charges?"
Virginia Retail Sales and Use Tax:
5% (4% state and 1% local)
http://www.tax.virginia.gov/web_pdfs/SalesTax_Rate_Increase_Guidelines.pdf
Sales Tax Tables:
http://www.tax.virginia.gov/web_pdfs/busForms/st_table_5percent.pdf
- "Who/where do we need to pay the taxes to"
This package contains the following:
. ST-9 Virginia Retail Sales And Use Tax Return
. ST-9A Virginia Retail Sales And Use Tax Work Sheet
. ST-9B Schedule Of Local Taxes
Complete the Form ST-9 below, detach it and mail it with your payment to:
Virginia Department of Taxation
P.O. Box 26626
Richmond, VA 23261-6626
http://www.tax.virginia.gov/web_pdfs/busForms/ST9_W_0904.pdf
or file it online:
VATAX / VEC Online is available to all businesses registered with the
Virginia Department of Taxation or the Virginia Employment Commission.
You must have a valid Virginia state tax ID number or VEC account
number.
https://www.business.tax.virginia.gov/BusinessLogin.jhtml
- "and how often?"
"Businesses subject to sales tax must submit a monthly report to the
department. The business should submit their monthly sales tax report
on form ST-9 by the 20th of the following month whether or not you
have had taxable sales for the month. We send a booklet containing
Form ST-9 to all Virginia registered businesses collecting sales tax."
http://www.tax.virginia.gov/site.cfm?alias=SalesUseTax#Retail
Filing and Payment
Where can I get sales and use tax returns?
"Once you register for an account, you will receive preprinted forms.
If you need blank forms, you can download sales and use tax returns
from this website, or call our Forms Unit at (804) 440-2541. For quick
and easy paperless filing, you can sign up for VATAX Online for
Business, our free online filing service. "
When are my returns and payments due?
"Monthly returns are due by the 20th day of the following month.
Quarterly returns are due by the 20th day of the month following the
close of each calendar quarter. You must file a timely return, even if
there is no tax due. "
How often do I need to file?
"All newly registered accounts are placed on a monthly filing status
for their first year of reporting. After that time, the department
will automatically change the status to quarterly if the average
monthly liability is less than $100."
http://www.tax.virginia.gov/site.cfm?alias=BusinessFAQ2#sales
- "Do we charge the VA residents taxes for the everything -
- rental - yes
Leases and Rentals
Does sales tax apply to equipment rentals?
"The sales tax generally applies to the lease or rental of any tangible property."
http://www.tax.virginia.gov/site.cfm?alias=BusinessFAQ2#sales
Of the gross proceeds derived from the lease or rental of tangible
personal property, where the lease or rental of such property is an
established business, or part of an established business, or the same
is incidental or germane to such business.
http://www.policylibrary.tax.virginia.gov/OTP/Policy.nsf
- shipping -
"Purchase price" or cost price applies to the measure subject to use
tax and has the same meaning as sales price."
"Sales price" applies to the measure subject to sales tax and means
the total amount of consideration, including cash, credit, property,
and services, for which personal property or services are sold,
leased, or rented, valued in money, whether received in money or
otherwise, without any deduction for the following:
4. Delivery charges;
http://leg1.state.va.us/cgi-bin/legp504.exe?041+ful+HB788
For example:
Rental + shipping + tax
- minutes -
After searching around for quite awhile, I don't believe you would
include minutes in with the Sales Price. However, give the Virginia
Department of Taxation a call just to confirm that.
Rental + shipping + tax + minutes
When you call the Virginia Department of Taxation, ask to make sure
that they don't differentiate between "shipping" and "shipping and
handling" in regards to the "sales price".
For example:
Rental + tax + shipping + minutes
or
Rental + shipping and handling + tax + minutes
Hopefully I've been able to help you sort through the sales tax maze a
bit. There are so many variables that it really is best for you to
give the Virginia Department of Taxation a call and explain exactly
what you do.
Regards,
hummer
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