West Virginia sales tax for online sellers: nexus, permit and filing

What is the West Virginia sales tax rate?

The state rate is 6%. Many cities add a municipal sales tax of up to 1%, so the combined rate is between 6% and 7% depending on the delivery address. Groceries for home use are exempt from the state tax. West Virginia taxes many services as well as goods.

When does an online seller have to collect in West Virginia?

West Virginia calls its rule the small seller exception. A remote seller does not have to collect unless, in the previous or current calendar year, its gross sales into West Virginia were more than $100,000 or it made 200 or more separate transactions there. Either test ends the exception. Exempt sales count towards the figures, and several guides say sales made through marketplaces count too. A physical presence, such as staff, an office or inventory, creates nexus whatever the figures.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

West Virginia requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online with the West Virginia Tax Division. Registration gives you a business registration certificate, for which a small one-time fee may apply, and access to the MyTaxes portal. West Virginia is a member of the Streamlined Sales Tax agreement, so you can also register through the Streamlined system. See Streamlined Sales Tax registration.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into West Virginia against its threshold.

2. Register before collecting

   With the West Virginia tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule West Virginia assigns, including zero returns where required.

How are returns filed?

Returns are filed through MyTaxes and are due by the 20th of the month after the period. The Tax Division assigns monthly, quarterly or annual filing based on the tax you collect. Municipal taxes are reported on the same return, by city.

See how to file a sales tax return.

Why does the 200-transaction test matter?

Because it can be met at a low sales value. A seller of $15 items reaches 200 West Virginia orders after $3,000 of sales, far below $100,000, and must then register and collect. Many states have dropped their transaction tests, but West Virginia has kept its own, so count orders as well as dollars.

How do the municipal taxes work?

A city that has adopted a municipal sales tax adds up to 1% to the state's 6% on the same sales. The tax depends on the delivery address, and an address can have a city's name in it without being inside the city limits, so use the Tax Division's rate lookup. The state collects the municipal tax on the same return, with no separate city registration.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.