Notice: Virginia Sales Tax Increase
Effective October 1, 2020 the Commonwealth of Virginia is levying a new sales and use tax of .7% for the counties of Charles City, Chesterfield, Goochland, Hanover (including Ashland), Henrico, New Kent, and Powhatan, along with the City of Richmond. The total sales and use tax in these areas will soon be 6%. This includes the 4.3% statewide tax, the 1% local tax, and the new .7% regional tax. If you are currently collecting and remitting sales and use tax to the Virginia Department of Taxation on product sales, you will now be required to collect 6% on taxable sales generated in the above mentioned 8 localities. There is no increase in tax for food purchased for home consumption and essential personal hygiene products.
Additional information can be found in Tax Bulletin 20-8 on the Commonwealth of Virginia’s Retail Sales and Use Tax page.