First decide on a business structure VA as a Sole Proprietor, LLC/Corp, or Partnership.

Selling/Leasing or if wanting to buy or sell VA merchandise, food, equipment wholesale requires a Seller's Permit.

All VA Businesses Using a DBA doing business as name need a DBA Fictitious Business Name

Hiring VA Workers Requires a Federal EIN and a State Tax Number EIN

Starting Jan. 1, 2020, a number of new state and local tax laws go into effect in Virginia.

Some of the changes include:

• Reduced Sales and Use Tax on Essential Personal Hygiene Products: Effective Jan. 1, 2020, the Sales Tax (get Seller's Permit) rate in Virginia on essential personal hygiene products will be reduced to 2.5%. This includes products such as:    
  
  
  
  • Disposable diapers (regardless of age of user);
  
  
  • Disposable incontinence pads;
  
  
  • Disposable bed sheets; and
  
  
  • Feminine hygiene products like sanitary napkins and towels and tampons.
  
  

There is an additional 0.7 percent state tax imposed in the localities that make up Northern Virginia and Hampton Roads, making the rate in these areas 6 percent (5 percent state tax and 1 percent local tax).

The Virginia Retail Sales and Use Act establishes a tax on the sale, lease or rental of tangible personal property or the use or consumption of tangible personal property in Virginia, as well as taxable services in Virginia.

A seller is subject to the Sales Tax (get Seller's Permit) imposed on gross receipts from retail sales. "Retail sales" means sales made for any purpose other than for resale.

The tax may also apply to the furnishing of transient accommodations and the lease or rental of personal property. Code of Virginia § 58.1-603.

The seller is responsible for collecting the tax from the customer on each taxable sale. The tax must be separately stated and added to the sales price or charge.

The general Sales Tax (get Seller's Permit) rate for Virginia is 5.3 percent (4.3 percent state tax and 1 percent local tax).

There is an additional 0.7 percent state tax imposed in the localities that make up Northern Virginia and Hampton Roads, making the rate in these areas 6 percent (5 percent state tax and 1 percent local tax). In-state dealers - Generally, in-state dealers (individuals or businesses) are those making Virginia sales while having one or more physical locations in Virginia.

Businesses subject to the Virginia Retail Sales Tax (get Seller's Permit) must submit a monthly return to the Department, Form ST-9, by the 20th of the month after the sales occurred.

A return must be filed for each period, even if there are no sales to report. Based on your tax liability, the Department may change your filing frequency from monthly to quarterly. If your filing frequency is changed, you will be notified prior to the effective date.