West Virginia Sales Tax Rates

Total Range for 2024

6%–7%

West Virginia department of revenue logo

Why do you need to collect sales tax in West Virginia?

If you’re selling goods and services in West Virginia then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.

Two types of nexus exist:

  1. Physical Nexus: Having a physical presence, like an office, warehouse, or employees in West Virginia, triggers this type. If you do, you likely need to collect sales tax.
  2. Economic Nexus: This kicks in when your sales within West Virginia exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.

In West Virginia, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.

Is what you’re selling taxable in West Virginia?

Now that you understand the basics of West Virginia’s sales tax and nexus thresholds, let’s delve into whether your specific products or services are taxable.

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How to register for sales tax in West Virginia

The best way to register for a sales tax permit in West Virginia is to do it online through the West Virginia State Tax Department website. Here’s a breakdown of the process:

Online Registration:

  1. Visit the West Virginia State Tax Department website: https://tax.wv.gov/Business/SalesAndUseTax/Pages/SalesAndUseTax.aspx.
  2. Click on the link for “Business Registration” or “Sales and Use Tax.”
  3. Look for the option to register for a “Combined Sales and Use Tax Certificate.”
  4. Follow the online instructions to complete the application. You will need to provide information about your business.

After Submitting Your Application:

  • Once you submit your application, you’ll create a username and password for the online tax system.
  • It typically takes 7-10 business days to process your application and receive your Combined Sales and Use Tax Certificate.

How to collect sales tax in West Virginia

Collecting the Sales Tax:

  1. Add the Sales Tax to the Sales Price: During checkout, add the appropriate sales tax rate (based on the customer’s location) to the sales price of your goods or services.
  2. Clearly Show the Breakdown: On your invoice or receipt, clearly show the breakdown of the sales price, the amount of sales tax collected, and the combined total price.
Example:
  • You sell a hat for $15 to a customer in Huntington, WV with a 6.5% combined rate.
  • Sales tax: $15 (price) x 6.5% = $0.98
  • Final price: $15 + $0.98 = $15.98

FAQs

Do you have a physical nexus in West Virginia?

A physical nexus in West Virginia, for sales tax purposes, means you have enough of a physical presence in the state to be required to collect and remit sales tax. Here’s how to determine if you have a physical nexus:

  • You have a physical location in the state, such as a retail store, warehouse, or office.
  • You have employees or independent contractors who regularly solicit sales or perform services in West Virginia. This could include salespeople, delivery drivers, or installers.
  • You own or lease tangible personal property (inventory) located in West Virginia. This applies even if you use a fulfillment service like Amazon FBA.
  • You have a substantial presence at trade shows or conventions held in West Virginia.
Do you have an economic nexus in West Virginia?

You generally have economic nexus in West Virginia if your business exceeds EITHER of the following thresholds in the current or previous calendar year:

  • $100,000 or more in gross sales of goods and/or services delivered into West Virginia.
  • OR 200 or more separate transactions delivered into West Virginia.
What is use tax in West Virginia?

In West Virginia, use tax applies to tangible personal property or taxable services you use, store, or consume in the state, but for which you didn’t pay sales tax at the time of purchase.

Here’s a breakdown of West Virginia use tax:

  • Purpose: It ensures everyone pays their fair share of sales tax, even on out-of-state purchases or items not subject to sales tax at purchase (like online orders from out-of-state retailers).
  • Rate: The use tax rate in West Virginia is the same as the state sales tax rate. There may also be additional local use taxes depending on the location where the item is used.
  • Responsibility: The buyer (you) are responsible for reporting and paying use tax on qualifying purchases
Do you need a seller/reseller permit?

In West Virginia, you need a seller’s permit (Combined Sales and Use Tax Certificate) to collect sales tax. This applies to businesses selling taxable goods or services in the state, or out-of-state sellers exceeding economic nexus thresholds ($100,000 annual sales or 200+ transactions).

If you only sell tax-exempt goods or don’t meet the thresholds as an out-of-state seller, you likely don’t need a permit. A resale certificate (separate from a permit) allows tax-free purchases for resale with a seller’s permit for collecting sales tax.

How to get a sales tax permit/license in West Virginia?

To get a sales tax permit (Combined Sales and Use Tax Certificate) in West Virginia, apply online at the Tax Department website. You’ll need business info like name, address, and EIN. Processing typically takes 7-10 business days.

Alternatively, download a paper application or call for one. Consider using a West Virginia business address if needed (consult a tax professional like us for potential implications).

When are West Virginia's Returns Due?

Sales tax returns and payments in West Virginia are due on the 20th day of the month following the close of the applicable period. Here’s a breakdown:

  • Monthly Filers: If your average monthly sales tax liability exceeds a certain threshold set by the West Virginia Tax Division, you’ll be required to file and remit sales tax returns monthly. The 20th-day rule applies for each month’s sales tax.
  • Quarterly Filers: Most businesses file and remit sales tax quarterly. In this case, the 20th-day rule applies to the end of each quarter (March 20th, June 20th, September 20th, and December 20th).
How to file sales tax in West Virginia
  1. The Filing Process (using MyTaxes):

    1. Log in to your MyTaxes account.
    2. Navigate to the “Sales and Use Tax” section.
    3. Select the appropriate filing period (month or quarter).
    4. Follow the on-screen instructions to complete the electronic sales tax return. This will involve entering your sales and tax information.
    5. Once completed, review your return for accuracy.
    6. Submit your return electronically.

    Payment Options:

    • Electronic Funds Transfer (EFT): This is the preferred method through MyTaxes.
    • Credit/Debit Card: You can pay by credit or debit card through MyTaxes, but there will be a convenience fee.
    • Mail-in Payment: You can send a check or money order along with a completed paper voucher (Form RTL-500) to the West Virginia Tax Division. However, online filing and payment is highly encouraged for its efficiency.
Is anyone exempt from sales tax in West Virginia?

Here’s a breakdown of these exemptions:

Exempt Goods and Services:

  • Basic Necessities: Groceries for human consumption (excluding prepared or restaurant food), prescription drugs, and prosthetic devices.
  • Educational Services: Most qualifying educational services, including tuition and fees at public and private schools, colleges, and universities.
  • Religious Services: Services provided by churches and other religious organizations.
  • Certain Manufacturing and Industrial Goods: Machinery, equipment, and supplies used directly in manufacturing and production.

Exempt Customers:

  • Government Agencies: Purchases made by federal, state, and local government agencies are typically exempt from sales tax.
  • Certain Non-Profit Organizations: Non-profit organizations with a valid exemption certificate may be exempt from sales tax on purchases used for charitable or educational purposes.
  • Diplomatic Personnel: Foreign diplomats may have special exemptions depending on their status.

Contact Yonda Tax Today

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