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Virginia Businesses Get Ready for Sales Tax Holiday

  • Jul 26, 2012 | Will Frei

Businesses in Virginia need to prepare their cash registers for the August 3-5 sales tax holiday. During this time, certain school supplies and clothing items will be exempt from the 5% Virginia state sales tax. 

To qualify for the exemption, eligible school supplies must cost  $20 or less per item, and eligible clothing items must cost $100 or less per item.

Items Eligible for Sales Tax Exemption

The sales tax holiday exempts the following items (see complete list of eligible and non-eligible items):

  • School supplies including binders, book bags, calculators, legal pads, pencils and textbooks.
  • Clothing and footwear including aprons, bibs, boots, hats and caps, jeans, lingerie, pajamas, sandals and sneakers.
Items Not Eligible for Sales Tax Exemption 

However, certain items do not qualify for the exemption. These items include the following "computer school supplies:"

  • Computer storage media; diskettes; compact disks
  • Handheld electronic schedulers
  • Personal digital assistants
  • Printers for computers
  • Printer supplies for computers; printer paper, printer ink

In addition, clothing accessories, protective equipment and sporting equipment items do not qualify for the exemption.

"Virginia law does not generally permit retailers to advertise that they will absorb all or any part of the sales or use tax, or that they will relieve the purchaser, consumer, or lessee of the payment of all or any portion of the tax." However, "...dealers may advertise that they will absorb the tax on any or all non-qualifying items during the applicable sales tax holiday period for clothing and school supplies...." Dealers "...may not advertise that absorption will take place prior to or following the sales tax holiday period...."

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.