Virginia Sales Tax Demystified
Ok, so, Virginia is a bit funky when it comes to Sales Tax.
First, a few notables:
- There is not a traditional State Sales Tax in Virginia. They have a Motor Vehicle Tax and a NON-Motor Vehicle Tax
- There is a minimum tax of $75 on Motor Vehicles
- There is a Tire Recycling Fee of $.50 per new tire sold
- In some parts of the state there is a Gross Receipts Tax (GRT). This is a tax that the State imposes upon the dealers. The dealers CAN pass it onto their customers to recoup those taxes if they wish. There are 3 different GRT rates. They are:
- Retail Units: .2% (currently)
- Wholesale Units: .8% (currently)
- Labor .35% (currently)
- In Washington DC, DOC Fees are NOT taxable (EXCEPT when calculating the GRT)
- DOC Fees on the sale of Mopeds are NOT taxable because the State does not consider them to be Motor Vehicles
- Freight/Shipping/Delivery charges are NOT taxable
- Labor is NOT taxable
- *IF there is Labor on a job and there is a GRT in play then there WILL be GRT calculated on said labor
- Any Customer Rebates from the manufacturers reduces the taxable amount
- NO Trade-In Credit is given!
And now to list what makes up the taxable amounts:
- Jobs:
- Shop Materials
- Parts
- Labor IF there is a GRT in play
- Major Unit Sales:
- Price
- Accessories
- Dealer DOC Fee (Motor Vehicles ONLY) (Mopeds are NOT considered Motor Vehicles)
- Extended Service Contract
- Pre-Paid Maintenance Policy
- Tire & Wheel/Roadside Hazard Protection Policy
- LoJack/GPS Unit/Alarm System
- Battery Tender
- Chemicals (Interior Protection, Paint Protection, Undercoating)
- MINUS Customer Rebates
Well I hope this helps to answer any questions regarding calculating Sales Tax in the State of Virginia.