Retail Sales and Use Tax Rate Increases

Posted on 04.22.13

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

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.