On the retail sale of tangible personal property and specific services, West Virginia levies a sales tax. The state’s current sales tax rate is 6%, and cities have the option to tack on an additional levy of up to 1%. Sales tax must be collected and sent to the state by anyone or any business that is engaged in selling taxable products or services in West Virginia. They must submit a West Virginia Sales and Use Tax Return in order to achieve this.
Businesses record and pay their state and local sales taxes using the West Virginia Sales and Use Tax Return. Depending on the amount of sales the business makes, the return must be filed monthly, quarterly, or annually. The 20th day of the month after the reporting period is the deadline for filing and remitting taxes. Penalties and interest may apply if a filing or payment is not made on time.
Businesses can buy products for resale without paying sales tax if they have a WV Resale Certificate. A business must be registered with the state and show evidence of its involvement in the sale of tangible personal property in order to receive a resale certificate. When making a purchase, the vendor must be given the certificate, and they must keep a copy for their records.
In West Virginia, certain items like food for domestic consumption, prescription medications, and medical supplies are excluded from sales tax. Additionally, nonprofit institutions like churches and schools may be excused from paying sales tax on specific transactions. In addition, each year West Virginia gives a sales tax holiday, during which time some items are temporarily free from paying sales tax.
Use tax and sales tax differ significantly from one another. At the time of purchase, the merchant collects sales tax, which is then forwarded to the state. The use or consumption of taxable products or services that were not subject to sales tax is taxed under use tax, on the other hand. Purchases made outside of the state or from online merchants that do not charge sales tax are normally subject to use tax.
As a result, West Virginia use tax must be paid by anyone who buys taxable products or services from an out-of-state seller who does not charge sales tax. Both persons and companies fall under this category. The same Sales and Use Tax Return is used to report and remit use tax, which has the same rate as sales tax.
Finally, it should be noted that businesses must submit the West Virginia Sales and Use Tax Return in order to record and pay state and local sales taxes. Businesses who conduct taxable business in West Virginia should be aware of the state’s use tax obligations, resale certificate requirements, and sales tax exemptions. It is crucial to remain knowledgeable of all applicable tax laws and regulations because breaking them can result in fines and interest.