West Virginia Sales Tax Guide
Chapter 3: Getting registered to collect West Virginia sales tax
The first step toward proper management of West Virginia sales tax involves getting registered with the West Virginia State Tax Department. We get a lot of questions regarding this and recognize it may be the most difficult hurdle for small businesses to overcome. Registering to collect sales tax in West Virginia means you've acknowledged your legal responsibility to collect and consequently file and remit sales tax to the state.When do I need to register to collect sales tax in West Virginia?
There are two ways to think about this question. The first involves a topic called "nexus". Nexus, in the tax world refers to a company's connection to a state. While this connection is typically that of a physical nature (warehouse in the West Virginia, inventory in West Virginia, etc.), nexus is not limited to a physical presence. There are many nexus triggers we won't delve into here and, more importantly, nexus is often determined by a combination of events rather than a single event.
If it is determined you have nexus in West Virginia, the West Virginia State Tax Department has the legal right to require you to collect, file, and pay sales tax.
If you've determined you have nexus in West Virginia, the second question involves a topic we call "materiality". In short, you'll want to ask yourself whether the amount of sales tax you are required to collect and remit to the West Virginia State Tax Department is enough to put you at an unacceptable level of penalty and interest risk. As everyone's level of risk tolerance is different, this is a question that can only be answered by you, the business owner.
Prior to selling taxable goods or offering taxable services in West Virginia, a business that has established nexus within the state is required to register for an Business Registration.What triggers nexus in West Virginia?
Nexus is a complex topic that, depending on your situation, may require the in-depth knowledge of a qualified tax professional. That being said, there are a few common business events and situations that are known to trigger nexus in West Virginia. The most common include the following:
- Opening an office in West Virginia
- Storing inventory in a warehouse in West Virginia
- Having remote employees located in West Virginia
Businesses may register for an West Virginia Business Registration online by visiting the West Virginia State Tax Department and following the instructions provided.
It is also possible to get registered for a Business Registration by completing and mailing in a Business Registration (BUS-APP), but this approach is not recommended. Form based registration is being phased out in favor of online registration. It’s fast, free, and more reliable than mailing in a completed paper form.What information is required to register for a West Virginia Business Registration ?
When applying for a West Virginia Business Registration, there are a number of pieces of information that may be required. These include, but are likely not limited to:
- Business name
- Business entity type
- Description of business activities
- Date business activities began or will begin
- Business address and mailing address
- Business contact information
- The North American Industry Classification System (NAICS) code that best matches your business
- Federal Employer Identification Number (FEIN)
- Your name, Social Security Number (SSN), driver license number, personal address, and personal contact information of owner/sole proprietor
- List of business officers, partners, managing members, and/or trustees
- Employment information (date of hire, number of employees, payroll amounts, payroll agent’s PTIN, if applicable)
The cost to register for a West Virginia Business Registration is currently $30.Do I need a Federal EIN in order to register in West Virginia?
The West Virginia State Tax Department requires businesses requesting a new Business Registration to supply a valid Federal EIN number during the initial registration process. You can apply for an EIN number online by visiting the IRS website.Which West Virginia governement agencies do I need to register with in order to get a new Business Registration?
We recommend you contact the West Virginia State Tax Department to verify which government agencies you will be required to register with. Potential agencies include the following:
- West Virginia Department of Revenue
- West Virginia State Employment Agency
- West Virginia State Department of Labor
- West Virginia Local Tax Jurisdictions
Yes! West Virginia Business Registration registration is unique to the state of a business. The West Virginia State Tax Department requires all registered businesses to have current business owner name and contact information on file.