Retail Sales and Use Tax Rate Increases

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

Similarly, the Vending Machine Sales Tax rate will increase to 7 percent in the localities that make up the Northern Virginia and Hampton Roads regions, and 6.3 percent throughout the rest of Virginia.

These rate increases are the result of the state sales tax increasing 0.3 percent statewide, with an additional 0.7 percent increase in Northern Virginia and Hampton Roads. Local sales tax remains 1 percent statewide.

Rates Effective July 1, 2013:

Retail Sales and Use Tax

State Tax

Local Tax

Total State & Local Tax

Northern Virginia

5%

1%

6%

Hampton Roads

5%

1%

6%

Elsewhere throughout Virginia

4.3%

1%

5.3%

Vending Machine Sales Tax

State Tax

Local Tax

Total State & Local Tax

Northern Virginia

6%

1%

7%

Hampton Roads

6%

1%

7%

Elsewhere throughout Virginia

5.3%

1%

6.3%

 

Dealers will begin collecting the tax at the new rate beginning July 1, 2013, with the first reporting and payment occurring on the July 2013 return, due on August 20, 2013 (for quarterly filers, with the return for the quarter ending September 2013, due October 21, 2013).

Source: Virginia Department of Taxation
http://www.tax.virginia.gov/site.cfm?alias=changesandupdates#RetailSalesUse


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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