Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I collect sales tax from customers in different states without violating tax laws in Virginia? What are the requirements?

To collect sales tax from customers in different states without violating tax laws in Virginia, you must comply with the tax laws of each state. In Virginia, a supplier may elect to collect tax on out-of-state removals by completing an election form provided by the Commissioner [1.1]. An out-of-state supplier who is not required to be licensed under this chapter may elect to obtain a license and become a permissive supplier [1.2].

Requirements to collect sales tax on out-of-state removals

To collect sales tax on out-of-state removals, a supplier must comply with the following requirements [1.1][1.2]:

  • Collect the tax due the Commonwealth on the fuel
  • Waive any defense that the Commonwealth lacks jurisdiction to require the supplier to collect the tax due the Commonwealth on the fuel under this chapter
  • Report and pay the tax due on the fuel in the same manner as if the removal had occurred at a terminal located in Virginia
  • Keep records of the removal of the fuel and submit to audits concerning the fuel as if the removal had occurred at a terminal located in Virginia
  • Report sales by the supplier to a person who is not licensed in the state where the removal occurred if the destination state is Virginia

A dealer is required to collect sales tax from all persons that are dealers, as defined in Virginia law, and that have sufficient contact with the Commonwealth to qualify under certain criteria [2.1].

Conclusion

To collect sales tax from customers in different states without violating tax laws in Virginia, you must comply with the tax laws of each state. In Virginia, a supplier may elect to collect tax on out-of-state removals by completing an election form provided by the Commissioner. An out-of-state supplier who is not required to be licensed under this chapter may elect to obtain a license and become a permissive supplier. To collect sales tax on out-of-state removals, a supplier must comply with the requirements listed above. A dealer is required to collect sales tax from all persons that are dealers, as defined in Virginia law, and that have sufficient contact with the Commonwealth to qualify under certain criteria.

Source(s):
Jurisdiction

Virginia