Surrounded by beautiful scenic mountains and lush forests, West Virginia truly deserves the title “Almost Heaven.” These natural wonders invite endless business opportunities, attracting entrepreneurs from all over the states. Before you get lost in the maze, it’s essential to learn what is sales tax in West Virginia to keep you ahead of the marketing race.
This guide breaks down everything you need to know about West Virginia’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle West Virginia’s sales tax with confidence and ease.
Sales Tax Nexus in West Virginia
When a business creates either a physical or economic nexus, it is required to collect sales tax in West Virginia.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in West Virginia include:
- Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
- Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
- Employees, independent contractors, agents, or other representatives operating on your behalf.
- Affiliate Nexus: Any retailer with an affiliate operating in West Virginia is considered to have a business presence, regardless of physical location. Out-of-state sellers establish a nexus if their affiliate’s sales exceed $100,000 or 200 transactions in the state.
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning January 1, 2019, the threshold for economic nexus in West Virginia is $100,000 in gross revenue or 200 transactions in the previous or current calendar year’s sales.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the
governing laws for economic sales tax nexus requirements in West Virginia.
West Virginia Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in West Virginia.
Tangible Products
Almost all goods are taxable in West Virginia, including:
- Cosmetics
- Electronics
- Clothing – Generally taxable unless purchased for resale or with an exemption certificate. For a comprehensive definition of taxable clothing types, you may view this legal article from the government of West Virginia. Exemptions are also applicable for certain clothing types during Sales Tax Holidays.
- Furniture
- Jewelry
- Home Goods
- Personal Hygiene
- Feminine Hygiene Products (i.e. pads, tampons, and menstrual cups)
The goods that are exempt from sales tax are:
- Grocery Food – Since July 1, 2013, grocery food has been exempt from sales and use tax in West Virginia. However, food sold in a heated state, prepared food, packaged food with eating utensils provided by the seller, soft drinks, and food sold through vending machines are taxable.
- Lottery tickets, delivered newspapers, educational textbooks used in schools
- Prescription Medications
- Medical Devices
- Agricultural Supplies such as Seeds, fertilizers, and machinery used directly in farming
Services
In West Virginia, services are taxable only when specifically defined as taxable by law. This includes telecommunications and some personal services.
Most professional services, such as legal, accounting, and medical services,
are not taxable.
Software as a Service (SaaS)/Digital Products
SaaS, when classified as a data processing service, is taxable in West Virginia. This refers to services that provide access to computer equipment for the purpose of processing, acquiring, or examining data.
This includes situations where a service processes data for a customer using the provider’s equipment (e.g.,
streaming services).
Digital products (i.e., digital audio-visual works, audio works, and digital books) are not taxable as long as the product is only transferred electronically.
Shipping/Handling
Shipping and handling charges in the state of West Virginia are
not taxable for sellers if the delivery charge is already included in the total amount of the taxable item’s sale.
If delivery charges are stated separately, the shipping and handling fees are subject to sales tax in West Virginia.
Sales Tax Permits and Licenses in West Virginia
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in West Virginia, the next important step is getting your West Virginia Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a West Virginia sales tax permit online at the West Virginia Tax Division Website or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
- Business Identification Information (name, address, phone number, email address)
- Business Entity Structure (sole proprietorship, partnership, corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Owner/Partner/Officer Information
- Business Activity Details (description of products or services sold, sales volume, date of the first sale, or the expected date to start dates)
- NAICS code
Registration fee
There is a $30 fee to register for a sales tax permit. The state charges a non-refundable registration fee.
Renewal
In West Virginia, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Instead of a renewal, businesses are only required to file an annual report from January 1 to July 1 of each calendar year after your official registration date for the sake of compliance.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In West Virginia, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
To get a resale certificate in West Virginia, you only need to fill out the
Streamlined Sales and Use Tax Certificate of Exemption. This certificate will also give you
sales tax exemption for multiple states simultaneously once approved. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. West Virginia is a party to the program, meaning it follows the uniform rules and definitions established by SST.
Check with the West Virginia Tax Division for the most current information on West Virginia’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in West Virginia
Sales Tax Computation
In West Virginia, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in West Virginia and sells to a customer in Charleston, WV, with a ZIP code of 25301. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
 |
SALES TAX FORMULA |
RATE |
| State: |
West Virginia |
6.00% |
| County: |
Kanawha County |
0.00% |
| District: |
First District |
0.00% |
| City: |
Charleston |
1.00% |
| Combined Sales Tax Rate = |
7.00% |
|
Origin-based vs. Destination-Based
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
West Virginia is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a West Virginia-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Pennsylvania to a customer in Morgantown, West Virginia, where you have a nexus, you’d apply Morgantown’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in West Virginia
The next step after collection is filing and remitting your West Virginia sales tax returns. Filing and remittance can vary in frequency, typically quarterly or annually.
- Quarterly Filing: Needed when the average monthly liability does not exceed $250.
- Annual Filing: Mandatory if average monthly liability does not exceed $600.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with West Virginia’s sales tax regulations.
Due Dates
In West Virginia, the due date falls on the 20th day of the following month. For instance, sales tax collected in January is due by February 20th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 20th deadline falls on a holiday or weekend, you’ll have until May 21st, the following business day, to submit.
Filing Sales Tax Returns
When filing your sales tax return for West Virginia, a few options are available:
- File online through the MyTaxes.WVTax.Gov.
- File by mail – Download and fill out the RTL-348 form and mail it to the address provided. For additional instructions, read West Virginia’s official guidelines here.
- File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. West Virginia’s timely filing discount amount is determined using specific formulas based on the tax due. As long as the taxpayer pays on or before the date their taxes become payable, they become eligible for a 2.5% discount.
Sales Tax Holiday
Currently, for 2025, the planned sales tax holiday in West Virginia is:
| DATE |
TYPE |
ELIGIBLE MERCHANDISE |
| August 1-4, 2025 |
Back-to-School |
-
-
- Clothing (less than $125)
- School supplies (less than $50)
- Computers and laptops (less than $500)
- Sports equipment (less than $150)
- School instruction material (less than $20)
|
|
West Virginia Sales Tax Penalties
Like in most states, sales tax is a big part of how West Virginia generates revenue. Thus, maintaining compliance with sales tax regulations is of utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific penalties for non-compliance with sales tax regulations in West Virginia:
- Late Filing Penalty: Failure to timely file a return due to willful neglect adds a 5% charge on top of the amount of the total tax due. An additional 5% is added to the penalty for each missed month. A maximum of 25% total penalty can be accumulated.
- Failure to Timely Pay Tax Due: Failing to pay the tax incurs a 0.5% penalty, increasing monthly for repeat offenses, up to a 25% maximum.
- Underpayments: Measured based on the underpaid tax amount. A total of 12.25% interest rate can be added.
- Fraudulent Returns: Results in a 50% added charge on the total amount due.
- Negligence: Failure to pay the tax due because of negligence or intentional disregard of rules results in a 5% added interest on top of the total tax due. A maximum of 25% interest rate can be accumulated.
If you wish to waive a penalty, the West Virginia Tax Division allows you to submit a letter or web notice through their official website,
MyTaxes. When you submit your letter, you must state your reason for requesting a penalty waiver.
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