New State Law Requires Certain Sellers / Facilitators to Register with VA Tax Starting in July

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Businesses Can Register with Virginia Tax Online or By Mailing in Form

Starting July 1, 2019, remote sellers and marketplace facilitators who sell or facilitate sales to customers in Virginia and meet certain requirements must register with Virginia Tax for the collection of sales and use tax.

This is due to a new state law enacted by the Virginia General Assembly during the 2019 session. The new requirements affect:

Remote sellers that receive more than $100,000 in annual gross revenue from sales in the commonwealth or engage in at least 200 annual sales transactions in Virginia; and
Marketplace facilitators that facilitate or conduct sales in the commonwealth totaling more than $100,000 in annual gross revenue or 200 or more sales transactions.

You can register your business with Virginia Tax two ways. For online registration, log on to the Register a Business in Virginia section of the Virginia Tax website. For paper registration, download the Business Registration Form (R-1) to mail in or fax. If this law change affects you, you must identify whether you are a marketplace facilitator.

If your business is already registered, but you now also qualify as a marketplace facilitator, you must update your records by July 1, 2019, to reflect the change. If you are a previously unregistered business, and now qualify as a remote seller or a marketplace facilitator in Virginia, you have 30 days from the qualification date to register. If you qualify as a remote seller or marketplace facilitator in Virginia as of July 1, 2019, you must register to begin collecting the tax on transactions occurring on or after July 1, 2019.

If you need assistance registering your business or have questions, call Virginia Tax at 804.367.8037. For additional information, visit the Virginia Tax website.