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Virginia: Out-of-State Dealers and Sales Tax


 Virginia walks the remote sales tax tightrope.

Beginning September 1, 2013, Virginia will require certain out-of-state dealers to collect sales and use taxes on sales made into Virginia. The online retailer Amazon is one such dealer. This change reflects Virginia Senate Bill 597, signed by the governor and enrolled as Chapter 590 in April 2012.


Under the amended law, the definition of dealer includes, but is not limited to, any person who:

  • Manufactures or produces tangible personal property for sale at retail, use, consumption, distribution or storage;
  • Imports or causes to be imported into Virginia tangible personal property from any state or foreign country, for sale at retail, use, consumption, distribution or storage;
  • Sells at retail, or who offers for sale at retail, use, consumption, distribution or storage in Virginia, tangible personal property, and who cannot prove that sales or use tax has already been paid.

Under the amended law, a dealer is "deemed to have sufficient activity within the Commonwealth to require registration" if "any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location within the Commonwealth that facilitates the delivery of tangible personal property sold by the dealer to its customers."

The law includes a rebuttal presumption.

Like Virginia, many other states are not waiting for federal lawmakers to enact the nexus to include online affiliates.

The Virginia Department of Taxation explains the new requirements on out-of-state dealers in an information bulletin dated August 23, 2013. Read Chapter 590 in full here.

How is your business preparing for sales tax changes?

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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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.