Overview of Permit Requirements
Do you need a sales tax permit in Virginia to sell online? Any Virginia business that sells, leases, rents, or distributes tangible personal property needs to register with the state to collect retail sales and use tax. Virginia law requires this for both in-state and out-of-state dealers. You must obtain a sales tax certificate if you:
- Are engaged in a Virginia business
- Intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail
Additional Licensing Information
The only state-level permit or license in Virginia is the sales tax certificate, also known as a seller’s permit. Depending on your business, other licenses and permits may also be necessary. Virginia does not require a statewide business license. However, it does have licensing or certification requirements for certain professions and occupations.
To legally sell products online, nearly all states require a Seller’s Permit. You will likely need some form of business license or permit to sell on Etsy in Virginia, depending on the type of product you are selling and the regulations in your specific locality.
Registration Process
To register for a sales tax certificate, log into your business online services account or fill out the retail sales and use section on Form R-1. You’ll receive your 15-digit sales tax account number and your Sales Tax Certificate of Registration. Be sure to save both.
Acquiring a Seller’s Permit
Yes, Virginia requires most businesses to obtain a sales tax permit in order to legally collect and remit sales tax, including online sellers. To get a Virginia seller permit, you must register with the Virginia Department of Taxation. The application can be started online. Once approved, you will receive your sales tax permit certificate within 5-7 business days. The permit is valid for 5 years and must be displayed at your business location(s).
Other licenses or permits may also be required depending on your business activities. The sales tax permit covers both retail and wholesale transactions.
Exemptions and Recommendations
You may not need a permit if selling only through marketplaces that handle sales tax collection and remittance. However, permitting is still recommended to legally operate in Virginia. The process to get a sales tax permit involves gathering business information, applying online or by paper form, then displaying your permit certificate once approved. Be sure to file your sales tax returns even for periods with no sales.
In summary, a seller’s permit provides authorization for collecting, charging, and remitting sales tax in Virginia, ensuring compliance with state tax laws.