Virginia Law Requiring Tax Collection By Online Retailers Takes Effect Sept. 1
By Marc Heller
A Virginia law that requires certain online retailers to collect Virginia sales and use taxes takes effect Sept. 1.
The law affects remote retailers with distribution centers, offices or other types of physical presence in the state, according to an August 23 notice published by the Virginia Department of Taxation. A physical presence could also be achieved by making regular deliveries in the state, the department said.
Lawmakers in Virginia passed the legislation (S.B. 597) in 2012, seeking to enforce sales tax collection by Amazon.com and other remote sellers who sell products to Virginia residents but at the time did not collect sales tax.
The law was set to take effect on either Sept. 1, 2013, or when Congress enacted legislation authorizing states to require online retailers based in other states to collect sales tax on their behalf.
Congress has not enacted the Marketplace Fairness Act (S. 743, H.R. 684), although the Senate did pass S. 743 in May (88 DTR G-3, 5/7/13).
Virginia’s Tax Bulletin 13-11 is available at http://www.policylibrary.tax.virginia.gov/OTP/Policy.nsf.