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Learn the fundamentals of sales tax
Do you need to collect sales tax in West Virginia?
You’ll need to collect sales and use tax in West Virginia if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.
Do you have physical nexus in West Virginia?
West Virginia considers a seller to have physical nexus if any of the following applies to your business:
- A physical presence nexus in West Virginia
- Is organized or commercially domiciled in West Virginia
You can click here to visit the West Virginia State Tax Department and read more about their sales tax requirements.
Do you have economic nexus in West Virginia?
Effective January 1, 2019, West Virginia considers vendors who make more than $100,000 in sales annually in the state or more than 200 transactions in the state in the previous or current calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales and use tax from buyers in the state.
Is what you’re selling even taxable?
Services in West Virginia are generally taxable. With some tax exemptions for personal and professional services.
Tangible products are taxable in West Virginia, with a few tax exemptions. These exceptions include certain groceries, and medical devices.
Is SaaS taxable in West Virginia?
SaaS is considered a taxable service in West Virginia. (Source)
How to get a sales tax permit in West Virginia
You need this information to register for a sales tax permit in West Virginia:
- Personal identification info (SSN, address, etc.)
- Business identification info (EIN, address, etc.) – Always use your home business or business address, even if you are located outside West Virginia
- NAICS code
- Date you began doing business in West Virginia (Not sure what to enter here? Read more about “When to Register for a Sales Tax Permit“)
It’s free to apply for a sales tax permit, but other West Virginia business registration fees may apply. Some businesses based in West Virginia may be required to pay a $30 business registration fee. You can find out more about that here.
Collecting Sales Tax
The sales tax rate you collect in West Virginia depends on whether you are based in West Virginia or out-of-state.
How to Collect Sales Tax in West Virginia
West Virginia is a destination-based sales tax state. So if you sell an item to a customer through your online store, collect sales tax at the tax rate where your product is delivered. (I.e. the Buyer’s ship to address.) The West Virginia state sales tax rate is 6%.
You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator.
Should you collect sales tax on shipping charges in West Virginia?
If you charge sales tax on an item you should also charge sales tax on any shipping charges you charge to your customer.
On the other hand, if the items you are shipping are not taxable, you generally do not need to charge sales tax on the item(s) you are shipping. Though West Virginia doesn’t specify, in most cases if you are shipping a mix of taxable and non-taxable items, only charge sales tax on the portion of the shipping charges that cover the taxable items. You can learn more about how West Virginia handles shipping charges here.
When are Returns Due?
When you file and pay West Virginia sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in West Virginia?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In West Virginia, you will be required to file and remit sales tax either monthly, quarterly, or annually.
West Virginia sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing Sales Tax
When it comes time to file sales tax in West Virginia you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to Calculate How Much Sales Tax You Owe in West Virginia
Calculating how much sales tax you should remit to the state of West Virginia is easy with TaxJar’s West Virginia sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your West Virginia sales tax return will be waiting for you in TaxJar. All you have to do is login.
How to File and Pay Sales Tax in West Virginia
You have a few options for filing and paying your West Virginia sales tax:
- File online – MyTaxes, the West Virginia State Tax Department’s website.
- Other payment options here.
- AutoFile – The easiest way to file sales tax in West Virginia is to let TaxJar AutoFile for you. Find out more about AutoFile here.