Does Virginia charge sales tax on services?
by May 1, 2026
Most US states require merchants to charge sales tax on tangible personal property (TPP), which are also known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. As the economic landscape has shifted from a manufacturing economy to a service economy, many states look to generate additional revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Virginia, which has a state sales tax rate of 5.3%.
Which services are taxable in Virginia?
Services in Virginia are generally not taxable, with a few exceptions. The following are taxable services in Virginia:
- Any services included in or in connection with the sale of tangible personal property
- Any services in connection with the fabrication of tangible personal property whether or not the customer furnishes, either directly or indirectly, the materials used in fabrication
- Any services in connection with the furnishing, preparing, or serving by a person for a consideration of meals or other tangible personal property
- Any rooms, lodgings or accommodations furnished to transients by any hotel, motel, inn, tourist camp or cabin, camping grounds, club or any other similar place furnished for less than 90 continuous days
These are general guidelines; consult with a sales tax professional to understand your tax responsibilities and potential liabilities. Consult a sales tax professional to determine if the services your business provides should be subject to state sales tax. TaxJar’s guide to sales tax in Virginia and the Virginia Department of Taxation have more details about sales tax guidelines in the state.
Sales tax compliance for Virginia service businesses
Like other states, Virginia typically only charges sales tax on services connected to the sale of tangible personal property (as well as the noted exceptions outlined above). If you need to charge sales tax on services, TaxJar takes all of Virginia’s laws and guidelines to simplify the process.To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
FAQ: Sales tax on services in Virginia
Need more information about which services are taxable in Virginia and which services are exempt? Explore our FAQ to discover the answers to common sales tax questions from service-based businesses.
In Virginia, most services are exempt from sales tax.
Most businesses that provide a service (versus a tangible product) don’t need to charge sales tax in Virginia. However, for businesses that fall into one of the noted exceptions, applying for a sales tax permit is simple. The Virginia Department of Taxation offers VATAX to simplify this process. Businesses can also print out the form online and send it to:
Virginia Department of Taxation
Registration Unit
PO Box 1114
Richmond, VA 23218-1114
Phone: 804-367-8057
Fax: 804-367-2603
TaxJar can also assist businesses in registering for a sales tax permit
Per the Administrative Code for the State of Virginia, sales tax is exempt for: “…Separately stated labor or service charges for the repair, installation, application or remodeling of tangible personal property.”
SaaS is non-taxable in Virginia.
Most professional services are non-taxable in Virginia unless they are included in or connected to the sale of tangible property.
While most services are exempt from sales tax in Virginia, freelancers who provide services in any non-exempt areas must charge sales tax. A freelancer whose services are included in or connected to the sale of tangible property is required to assess sales tax (and remit payments to the state).
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