Sales Tax Permit, Sales Tax Filing & Reporting
Applying for a sales permit can be a complex task to accomplish, but a sales permit is essential to ensure your sales tax filing and reporting is completed efficiently and in compliance with regulatory agencies. In the state of Virginia, it is important to first understand if you are required to obtain a sales permit for sales tax filing and reporting.
In order to check if your business requires a sales permit you must determine if you have exceeded a “sales tax nexus.” A sales tax nexus is simply a legal term that means your sales have reached a point that requires sales tax collection responsibilities. For most, if not all, a sales permit will be required before any major growth or expanded operations can occur, calling on the need to have a professional accountant, like JS Morlu, working alongside you to ensure accurate applications and timely filings.
How Do I Get a Sales Tax Permit or Seller’s Permit in Virginia?
According to the state of Virginia, any business entity which sells, leases, rents, distributes, or otherwise meets the definition of a “dealer” of tangible personal property to customers in Virginia must collect and pay sales tax. In order to acquire a seller’s permit in Virginia, business owners or managers must first register the business with the state of Virginia.
To register your business, you must have a handful of items prepared to provide the state of Virginia with key information about your business. Requirements for business registration include your Federal Employer Identification Number (FEIN), business’s primary user account information, general business information, entity type, the business’s North American Industry Classification System (NAICS) code, the type of tax you need to register for, primary contact information, and the responsible party’s information.
Registration can be performed online or by mail, but the state of Virginia stands by the benefits and efficiency of online registration. Not only is your information put into the system of Virginia, but you are immediately registered to start doing business in Virginia if you register online. Both the NAICS code and the FEIN can be found online through the IRS or the state of Virginia.
If you wish to register through the mail, a representative of the business must fill out a Business Registration Form R-1. The form can be found on the state of Virginia website or by using this link. The state of Virginia also has a webpage with a list of requirements and a brief description of how to attain the information. Business licensing requirements may differ from business to business based on your level of activity and location. JS Morlu’s team of experts can help you register online or by mail.
Once your business is registered, either online or through the mail, your business can legally begin operating in the state of Virginia and you will receive information including your Virginia Tax account number for each tax type, sales tax certificate of registration, and other documents to help you determine what returns to file and when.
How Much is a Seller’s Permit in Virginia?
Registering and receiving a seller’s permit in Virginia comes at no charge. Other business fees may apply, so contact the Virginia Department of Taxation to find out what charges may be required for your business. Common fees businesses see relate to filing sales and use tax returns. This can add up depending on your level of sales and when nexus thresholds are reached. To prevent overpaying, contacting JS Morlu is in your best interest.
Does Virginia Have a Resale Certificate?
Virginia does in fact have a resale certificate available for resellers in the state. In order to apply for a resale certificate inventory must be purchased with the intent to be resold or used as packaging for items intended for sale. Acquiring a Virginia resale certificate allows businesses to purchase items tax free as long as the previously mentioned requirements are met.
Resellers should fill out the Virginia form ST-10 and present the completed form to the retailer that they wish to make their tax free purchase of tangible personal property from. This form requires the information of the supplier the goods are being bought from, information of the reseller and its intent for redistribution, as well as the time of product being purchased. The form also notes that cigarettes are not eligible for resale tax exemption. Following all the required criteria can be overwhelming if you aren’t well versed in resale certificates, which is why JS Morlu is here to help.
The idea behind a reseller being exempt from paying sales tax on a purchase of goods is to avoid the double taxation of a product. Although resellers do not pay the sales tax on their purchase, the customers who purchase the goods will be charged a sales tax on the goods. The purpose of the certification is to verify the reason sales tax was not collected when a retailer purchases goods from a supplier. It is also important to note that the exemption of sales tax on items intended for retail does not apply to inventory needed for the daily operations such as pens, paper, or other office supplies. If you believe you are eligible for sales tax-exempt purchases, reach out to JS Morlu today to figure out the next steps.
How Do I Get a Sales Tax Certificate in Virginia?
A sales tax certificate, also known as a seller’s permit, sales tax permit, state tax license, sales tax number, or sales tax registration, is a requirement for any business looking to sell a product or service in a given state. In order to move forward in any fashion with operations in the state of Virginia, a business must first register itself to the state. Business owners can apply via mail or online to register their business in the state of Virginia and receive a seller’s permit.
Online registration for a sales tax certificate in Virginia is the most efficient method of registration. Not only will you be eligible for operation immediately, but you are quickly provided with the necessary information regarding the next steps of your business, including additional reporting and when to file. Online registration can also be utilized when updating business information including registering an existing business, adding a new location, or changing key personal information. The team at JS Morlu can assist you with the entire process.
Sales tax certificates are necessary when buying wholesale products for retail in order to avoid sales tax on inventory. Resellers must present their sales tax certificate to the wholesaler or supplier they intend to purchase inventory from to ensure not only that no sales tax will be enforced on the purchase as well as to verify to the state of Virginia why there was no sales tax on the transaction.
Business owners should note that they do not need to renew their registration. If your business’s information changes overtime, however, you must be report the change to the Virginia Department of Taxation. Changes which would require an update in a business’s registration would include a new or added location, mailing address, change in ownership, or any other relevant information recorded in the registration process that changes.
Do I Need a Seller’s Permit to Sell Online in Virginia?
Online seller’s shipping products to customers in the state of Virginia are required to collect and report sales tax. Regardless of the location of a business’s home-base, if any, online sellers must acquire a seller’s permit to ship and sell products in the state of Virginia. Not only will online seller’s need a permit to sell online, but they will also be required to obtain a sales tax certificate.
In order for your online business to qualify for the benefits of a reseller’s license the business must be registered for operation in Virginia. Registering for operation in Virginia will not only allow your business permit to sell online but also allow businesses to obtain a reseller’s license. Reseller’s licenses gives businesses the ability to purchase inventory from suppliers or wholesalers without paying sales tax on the product. This benefit only applies to products intended to be resold in Virginia.
Do I Need a Business License to Sell Online in Virginia?
If your online business has a physical location in Virginia, you will need to acquire a business license. Getting a business license for your online business is the first step in establishing it as a legitimate and legal business entity. Your local jurisdiction will determine what kind of business licensing is required for your online business.
Although an online business does not require a business license for each individual state it operates in, online businesses still must attain a sales tax certificate. Each state may have differing sales tax laws and regulations, meaning every state your business delivers products to, whether it is an online business or a brick-and-mortar store, you must acquire a sales tax certificate for that state.
If you are just looking to make some money on the side selling on platforms such as Etsy or Amazon, you will not be required to get a business license in Virginia. Additionally, eBay does not require its sellers to obtain a business license as long as they do not operate out of a physical location.
To switch from a hobby to a growing and thriving online business you will likely want to apply for a business license. Business licenses are key to establishing your business as legitimate, as well as paying the right amount of taxes to the state of Virginia. Not only will acquiring a business license for your online business establish legitimacy, but it will also open doors for your business to receive a reseller’s permit.
How Can JS Morlu Help?
All of this information can become overwhelming quickly, which is why JS Morlu is here to help. Our team here at JS Morlu has helped numerous clients apply for and obtain business licenses, sales tax certificates, and sales permits. Having a trusted expert, like JS Morlu, ensures everything entered in the registration process is complete and accurate. Among the list of services we offer include:
- Sales tax registration
- Sales tax filings
- Seller’s permit registration
- Reseller’s permit registration
- Business license application
- Sales tax certificate registration
As your business expands and enters new markets, it will be critical to stay on top of which states you are required to register and pay sales tax in. JS Morlu has the tools needed to properly track every aspect, ensuring full compliance.
Getting started with a trusted expert, like JS Morlu, has never been easier. Whether you are a new small business or growing enterprise, we can help you stay on the right track with our accurate and timely sales tax services. Reach out today to see how we can help you gain control over the sales tax requirements in your business.