A seller is subject to the sales tax imposed on gross receipts from retail sales. "Retail sales" means sales made for any purpose other than for resale. The tax may also apply to the furnishing of transient accommodations and the lease or rental of personal property.

The seller collects the tax from the customer on each sale. The tax must be separately stated and added to the sales price or charge. Currently, the general sales tax rate is 5% (4% state tax and 1% local tax). However, effective July 1, 2013, the General Assembly enacted House Bill 2313, which increases the state sales and use tax rate by 0.3% statewide. The general sales tax rate for the Hampton Roads Region will increase to 6% (5% state tax and 1% local tax).

The sales of eligible food items are subject to a reduced state tax rate of 2.5% (1.5% state tax and 1% local tax). For additional information on sales and use tax, please click the following links: Virginia Retail Sales & Use Tax Rate Increase Guidelines and 5% Virginia Sales Tax Table.