Virginia – Sale Tax Rate Changes and Form Updates

SALT Report 2454 – The Virginia Department of Revenue issued a notice regarding recent changes to Virginia tax law. The notice states that due to the passage of House Bill 2313 the sales tax rate will increase statewide and in specific localities. Because of this, the State has updated several sales and use tax forms as well as the factors used to determine the dealer’s discount.

Effective July 1, 2013, the Retail Sales and Use Tax rate for most purchases will increase to 5.3% statewide. In addition to the statewide increase, there is a 0.7% increase in the localities in the Northern Virginia and Hampton Roads regions. However, the tax rate for purchases of food for home consumption remains unchanged.

Affected Forms and Filers

The recent changes will affect most Virginia Retail Sales and Use Tax filers, and will result in revisions to the following forms:

  • Form ST-9 Retail Sales and Use Tax Return
  • Form ST-9 CO Retail Sales and Use Tax Return for Consolidated Filers
  • Form ST-8 Out-of-State Dealer’s Use Tax Return
  • Form ST-7 Consumer’s Use Tax Return
  • Form ST-6 Direct Pay Permit Sales and Use Tax Return
  • Form ST-50 Temporary Sales Tax Certificate/Return
  • Form VM-2 Vending Machine Dealer’s Sales Tax Return
  • Form PF-1 Public Facilities Sales Tax Return

Dealer’s Discount

Along with the rate changes, the factors for calculating the Dealer’s Discount for timely filing and payment of taxes have been adjusted. For monthly filers, the new factors will be used on the July 2013 return. For quarterly filers, the new factors will be used on the return for the quarter ending September 30, 2013.

For Further Information

Virginia Tax Commission – Notice

Notice to Affected Dealers