As an e-commerce seller, you will need to collect sales tax in West Virginia if you have:
(1) gross sales exceeding $100,000 or 200 or more separate transactions for the immediately preceding or current calendar year (economic nexus), or
(2) physical presence in West Virginia (physical nexus).
The West Virginia tax is denominated a “consumers sales and service tax.” Thus, like Arizona, Hawaii, and South Dakota, the tax not only applies to sales of tangible personal property, unless specifically excepted, it applies to all services, unless specifically exempted.
Below, we will highlight some of the basic provisions of West Virginia sales tax law.
What is the tax rate range for West Virginia?
State: West Virginia’s general sales tax rate is 6%.
Local: West Virginia localities impose their own sales tax at rates ranging from 0% to 1%. Municipal Sales and Use Tax
Do you have physical or economic nexus in West Virginia?
Physical nexus. Certain business activities create physical nexus in West Virginia. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to West Virginia. Examples of business activities that can create physical nexus in West Virginia include:
- Having or using an office, distribution house, sales house, warehouse, or other place of business in the state,
- Having or using an agent (by whatever name called) in the state, or
- Being related to or part of a unitary business, with another business;
- That, pursuant to an agreement with or in cooperation with the related retailer, maintains an office, distribution house, sales house, warehouse or other place of business in West Virginia;
- That performs services in West Virginia in connection with tangible personal property or services sold by the retailer;
- That, by any agent, representative, or employee, performs services in West Virginia in connection with tangible personal property or services sold by the retailer; or
- That directly, or through an agent, representative or employee located in West Virginia, solicits business in the state for the retailer.
- Economic nexus. Remote sellers and marketplace facilitators that have gross sales of tangible personal property and/or services for delivery in West Virginia exceeding $100,000 or 200 or more separate transactions for the immediately preceding or current calendar year must collect and remit West Virginia sales and use tax on taxable sales. Additional information:
- The annual gross sales amount and number of separate transactions include both taxable and nontaxable sales of services delivered into West Virginia.
- Remote sellers include gross sales made on its behalf by a marketplace facilitator in determining if the thresholds are met.
- Marketplace facilitators include gross sales made on its own behalf or on behalf of one or more marketplace sellers in determining if the thresholds are met.
- If either threshold is met, the seller must begin to collect West Virginia sales and use taxes on sales made after the date either of these thresholds is met.
- A remote seller or marketplace facilitator that does not qualify for the small-seller exception but only makes nontaxable sales in West Virginia is not required to register to collect West Virginia sales or use tax.
Remote Sellers and Marketplace Facilitators
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Clothing (except during the sales tax holiday)
- Services, unless an exemption applies
- Leases and rentals of tangible personal property
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Food (except soft drinks and prepared food)
- Digital goods
- Prescription drugs
- Certain personal and professional services
TSD-300 Sales and Use Tax Exemptions
Are there any sales tax holidays?
Yes. West Virginia’s sales tax holiday takes place on the first Friday in August through the following Monday. During the holiday, the following are exempt as long as these items ae not purchased for use in a trade or business:
- Certain clothing with a purchase price of $125 or less
- Certain school supplies with a purchase price of $50 or less
- Certain school instruction material with a purchase price of $20 or less
- Certain laptop and tablet computers with a purchase price of $500 or less; and
- Certain sports equipment with a purchase price of $150 or less.
Sales Tax Holiday Questions and Answers
Is West Virginia a member of the SST (Streamlined Sales Tax)?
Currently, West Virginia is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in West Virginia?
You can register online at:
Streamlined Sales Tax Registration System