Virginia Sales Tax Nexus - Do You Have Exposure?

Unsure where you owe sales or use tax or dealing with legacy compliance pain?

Virginia sales tax nexus affects many businesses selling into the state without a physical presence. Remote sellers, ecommerce companies, and digital businesses often trigger exposure as sales grow. Because Virginia enforces economic nexus and destination-based sourcing, exposure can exist before businesses register or begin filing. This page explains how Virginia sales tax nexus is triggered, what commonly creates exposure, and what to review before taking action.

Why Virginia sales tax nexus is commonly overlooked

Virginia:

Enforces economic nexus for remote sellers
Applies destination-based sourcing
Uses marketplace facilitator rules
Audits growing out-of-state businesses

Many businesses assume Virginia exposure requires physical presence. That assumption is often incorrect.

What triggers Virginia sales tax nexus

Virginia sales tax nexus is commonly triggered by:

Economic nexus based on revenue thresholds
Selling tangible goods into Virginia
Ecommerce and direct-to-consumer shipping
Marketplace activity
Physical presence or in-state business operations

Nexus can exist even if a business has no office, employees, or inventory in the state.

Economic nexus in Virginia

Virginia enforces economic nexus for remote sellers.

Nexus may be triggered when:

Sales exceed the applicable revenue threshold
Activity occurs within the defined measurement period
Taxable products or services are sold

Because thresholds are revenue-based, exposure can build quietly as sales increase.

Marketplace sellers and Virginia exposure

Marketplace facilitator rules reduce some exposure but do not eliminate all obligations.

Common issues include:

Marketplace collection covering only certain transactions
Seller registration or reporting still required
Mixed direct and marketplace sales
Use tax exposure remaining on purchases

Marketplace sellers should not assume exposure is fully resolved.

Digital products and SaaS in Virginia

Virginia taxes many digital transactions.

Exposure may arise from:

SaaS subscriptions
Digital access products
Cloud-based services
Licensing and usage-based pricing models

Digital businesses often trigger nexus earlier than expected.

Use tax exposure in Virginia

Use tax exposure is frequently overlooked.

Typical causes include:

Software and SaaS purchases without tax
Equipment purchased from out-of-state vendors
Services where tax was not charged
Vendor misclassification

Use tax obligations apply even when no sales tax was collected.

Why Virginia exposure is often discovered late

Virginia exposure is commonly identified during:

State audits or inquiries
Accounting or tax firm reviews
ERP or billing system changes
Fundraising or M&A diligence
Compliance cleanup projects

By the time exposure is found, remediation options may be limited.

What to review before registering or filing in Virginia

Before registering or filing, businesses should review:

Historical Virginia sales
Threshold timing
Marketplace activity
Digital and ecommerce transactions
Purchase-side exposure

Filing without clarity can create unnecessary long-term obligations.

How TaxMap helps with Virginia sales tax nexus

TaxMap evaluates Virginia sales tax and use tax exposure by analyzing sales and purchase data against state-specific rules. TaxMap shows where exposure exists, when obligations began, and what requires action now versus monitoring.