Virginia Tax Nexus

Businesses with nexus in Virginia are required to register with the Virginia Department of Taxation and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in Virginia when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Virginia nexus for out-of-state sellers

Affiliate nexus 

If you have ties to businesses in Virginia, including affiliates, you could have nexus under Virginia law (§ 58.1-612). An out-of-state vendor is presumed to have nexus 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.

In addition, an out-of-state retailer is considered to have nexus if the retailer engages in numerous activities, including but not limited to any of the following:

  • Soliciting business in Virginia on a continuous, regular, seasonal, or systematic basis by means of advertising that is broadcast or relayed from a transmitter within Virginia or distributed from a location within Virginia
  • Soliciting business in Virginia by mail, if the solicitations are continuous, regular, seasonal, or systematic and if the dealer benefits from any banking, financing, debt collection, or marketing activities occurring in Virginia or benefits from the location in Virginia of authorized installation, servicing, or repair facilities
  • Being owned or controlled by the same interests which own or control a business located within Virginia

An out-of-state vendor is also presumed to have nexus if any commonly controlled person maintains a distribution center, warehouse, fulfillment center, office, or similar location within Virginia that facilitates the delivery of tangible personal property sold by the dealer to its customers.

See SB 597, Chapter 590, 2012; and Code of Virginia § 58.1-613. Dealers’ certificates of registration.