Virginia: The Old Dominion

Virginia’s 110,000 km² area stretches across the South Atlantic Coastal Plain, the Piedmont and the southern Appalachian Mountains. With its neighbor Maryland, the state shares about half of the sprawling metropolitan area around Washington DC. According to ehuacom, the capital of the 8.5 million populous state is Richmond. Virginia’s nickname is “Old Dominion”.

In Virginia, the industries are as diverse as its geography. The state is home to the largest data center market in the United States, Virginia boasts the highest concentration of engineers in the country and its port is the third busiest on the East Coast. But the “Old Dominion” is also home to a diverse manufacturing base and a burgeoning unmanned systems industry.

Key industries are poised for growth to ensure success for future generations. The Virginia location stands for quality and stability for companies. It’s the right place for expansion and growth.

Virginia Location Map

TOP STATE FOR DOING BUSINESS

The northernmost of the right-to-work states is regularly cited as one of the top states for business in the US. CNBC goes one step further and ranked Virginia as “America’s Top State for Business”.

The corporate tax rate of six percent is below the national median and the AAA rating has held since 1938. Virginia has held this status longer than any other state. A second place in the “Most small business friendly state” rating (Thumbtack, 2019) forms another part of the overall picture.

This is rounded out by testimonies from Jason Reiman, Chief Supply Chain Officer at The Hershey Company. He thinks Virginia is a great manufacturing location. He also has a reason for this ready: access to talent and workers who are appropriately trained to operate the production facilities.

CONVENIENT LOCATION AND ADVANCED INFRASTRUCTURE

Strategically located on the US East Coast and adjacent to Washington, DC, Virginia’s integrated transportation system of highways, railroads, airports and seaports offers logistical advantages for companies in every industry. The Old Dominion’s central location allows companies to get their products to market quickly.

This assessment is confirmed by Björn Fischer, President of STIHL. He sees the Virginia Beach location as ideal. Serving the American market and exporting to more than 80 countries is possible without any problems. The Port of Virginia was one of the reasons for the location over 45 years ago and is still considered a key success factor today.

AMERICA’S TOP STATE FOR TALENT

CNBC also awarded Virginia first place for his talent and training. The state is setting the bar high in talent development. Across all industries, the Virginia workforce is among the most productive and best educated populations in the country. To ensure that this remains the case in the future, programs such as the Virginia Talent Accelerator Program and the Tech Talent Investment Program have been launched.

Mike Ownbey, President of Morgan Olson, says the Talent Accelerator Program is an important support in overcoming one of the company’s biggest hurdles, quality education for its workforce. In his eyes, the results are fantastic.

INCOME TAX IN VIRGINIA

Virginia charges an income tax of 2-5.75% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN VIRGINIA

Virginia charges a 6% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN VIRGINIA

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Virginia

The sales tax in Virginia is 5.3% at the state level. Municipalities or districts charge an average of 0.35% sales tax. Combined, an average of 5.65% is due.

Virginia Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 1, 2019

Transactions included:

Gross receipts from retail sales and chargeable services into the Commonwealth, including sales by members of the same controlled group of companies; excludes sales for resale

Treatment of tax-exempt transactions:

Exempt sales (other than resales) are included in the threshold; exempt services are excluded

Reason:

sales or transactions

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

The threshold applies to the current or previous calendar year

Extra information:

  • Registration Requirements : A remote business must register to collect and remit Virginia sales tax no later than 30 days after crossing the Economic Nexus Threshold. See the Remote Seller and Marketplace Moderator Policies formore information.
  • Information for Remote Sellers
  • SB1083

Virginia Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

July 1, 2019

Economic Nexus Threshold:

More than $100,000 in gross sales or 200 or more transactions in Virginia in the current or previous calendar year. Remote sellers should exclude sales through a marketplace when calculating the threshold. Marketplace intermediaries include all sales made through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Virginia Department of Taxation and collect your Virginia sales tax on sales not taxed by a marketplace intermediary once you cross the Economic Nexus threshold.
  • Remote Marketplace Vendors: You must register if you cross the Economic Nexus Threshold. Contact the Virginia Department of Taxation for more information.
    • After submitting final returns for sales through one market or another, mark them as no longer subject to VAT on Form R-3(or online).
  • In-State Multichannel Sellers: You must register with the Virginia Department of Taxation and collect tax on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact the Virginia Department of Taxation for more information.
    • After submitting final returns for sales through one market or another, mark them as no longer subject to VAT on Form R-3(or online). You can also update your account to continue using your VAT exemption certificates.