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Avalara Help Center

Set Up Virginia Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax

Add Virginia to the places where you collect tax. This tells AvaTax to calculate tax on Virginia transactions. See the Virginia Tax website for details about nexus, registration, and taxes in Virginia.

Before you add Virginia, there are two things you need to do:

Virginia has both sales and sellers use taxPick the right tax type based on the way your business is registered and the tax return you need to file.

When you select the tax type for Virginia:

  • Set the tax type to Sales or Sellers Use Tax if you're registered to collect sellers use taxes on sales shipped from out-of-state (form VA ST-8).
  • Set the tax type to Sales Tax Only if you only collect sales tax on sales from within the state and are registered to collect sales taxes (form VA ST-9). Be aware that taxes on any out-of-state sales are collected at the destination rate and reported as sales taxes if this option is selected.

"Sourcing" determines the location where a sale is taxed. Virginia is an origin-sourced state.

Add Your Company Locations

Virginia doesn't require location reporting on the returns. Add any physical locations you have in Virginia to enhance your company setup and track sales by location.

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

Virginia has different forms for different tax types.

  • Select form VA ST-9 if you're registered to file in-state Retail Sales and Use Taxes
    • The registration ID for this form begins with a "10" and includes your nine-digit FEIN and a three-digit suffix. Example: 10-123456789F-001
    • Per form ST-9A Worksheet, the dealer discount is available if the average monthly sales tax liability does not exceed 20,000.00.
      If your sales tax liability is greater than 20,000.00, the discount will not be applied to your return.
      For further questions on discounts, please contact Virginia Department of Revenue.
  • Select form VA ST-8 if you're registered to file out-of-state Dealer's Use Tax
    • The registration ID for this form begins with a "12" and includes your nine-digit FEIN and a three-digit suffix. Example: 12-123456789F-001
  • Select form VA ST-7 if you're registered to report Consumers Use Tax
    • The registration ID for this form begins with a "14" and includes your nine-digit FEIN and a three-digit suffix. Example: 14-123456789F-001
    • Avalara doesn't file this return on your behalf if you owe $0.00 in consumer use tax for the filing period, because the VA Department of Taxation doesn't require you to file a VA ST-7 return for any filing periods in which you don't owe tax.

Virginia offers a vendor discount for timely filing, but businesses whose average monthly sales tax liability exceeds $20,000 are not eligible for this discount. You must select if you're eligible for the vendor discount when you add the ST-9 or ST-8 return forms in Avalara, so make sure to confirm with the Virginia Department of Revenue if you're not sure. 

Some taxpayers are required to pay an annual accelerated payment. If you're required to submit an accelerated payment, the State of Virginia sends you a notice telling you how much to pay.

  • In general, accelerated payments are required from taxpayers who make more than $10 million in taxable sales and/or purchases in the previous fiscal year. If you meet this threshold, you're required to make a payment equal to 90% of your retail sales and use tax liability for June of the previous year.
  • Accelerated taxes are paid in June of each year
  • If you paid an accelerated tax amount, enter the amounts of the payments you made on the Approve returns page prior to approving the June return
  • If you'd like Avalara to make the payment on your behalf, schedule the VA Prepay form and add the prepayment amount provided by the state to the May liability to be paid in June
  • See the Virginia Tax website or contact Virginia Tax at 804-367-8037 for more info about prepayments

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