Resale Certificate in Virginia (2026)
Virginia resale certificate status: legal. A resale certificate allows businesses to purchase tangible personal property or services tax-free when the intent is to resell these items in the ordinary course of business.. A valid license is required to operate.
Key facts
- Status
- Legal
- License required
- Yes
- Jurisdiction
- Virginia
- Last reviewed
- 2026-04-09
Resale Certificate laws in Virginia
In Virginia, businesses that purchase goods or services intending to resell them to an end-user may use a resale certificate to avoid paying sales tax on their procurement. This exemption applies when the item purchased becomes an integral part of the property being sold or is consumed in the production of items for sale. The certificate essentially indicates to the seller that the buyer is not the final consumer and will collect sales tax from the ultimate purchaser. To utilize a resale certificate, businesses must typically be registered with the state for sales tax purposes and have a valid sales tax registration number. Misuse of a resale certificate, such as purchasing items for personal use without paying sales tax, can lead to significant penalties. The burden of proof for the tax-exempt nature of a transaction generally rests with the purchaser.
Frequently asked questions
What are the Resale Certificate requirements in Virginia?
In Virginia, resale certificate status is legal. In Virginia, businesses that purchase goods or services intending to resell them to an end-user may use a resale certificate to avoid paying sales tax on their procurement. This exemption applies when the item purchased becomes an integral part of the property being sold or is consumed in the production of items for sale. The certificate essentially indicates to the seller that the buyer is not the final consumer and will collect sales tax from the ultimate purchaser. To utilize a resale certificate, businesses must typically be registered with the state for sales tax purposes and have a valid sales tax registration number. Misuse of a resale certificate, such as purchasing items for personal use without paying sales tax, can lead to significant penalties. The burden of proof for the tax-exempt nature of a transaction generally rests with the purchaser.
How do I obtain a Resale Certificate in Virginia?
Virginia requires a Resale Certificate. Contact the relevant state agency for application details and testing locations.
Can I use my out-of-state Resale Certificate in Virginia?
Virginia generally recognizes out-of-state credentials through reciprocity agreements, but you must transfer your resale certificate within 30 days of establishing residency. Check with the state agency for specific reciprocity details.
What are the penalties for resale certificate violations in Virginia?
Penalties for resale certificate violations in Virginia vary based on the specific offense. Verify current penalties with official state resources.