Virginia applies a reduced sales tax rate of 1% to food for home consumption and specific essential personal hygiene products. This guide provides detailed information about what qualifies for this reduced rate and other relevant details.
Food for Home Consumption: What’s Included?
Generally, most staple grocery items and cold prepared foods packaged for home consumption are eligible for the reduced 1% sales tax rate in Virginia. This aims to make essential food items more affordable for residents.
However, certain items are excluded from this reduced rate. These include:
- Alcoholic beverages
- Tobacco products
- Prepared hot foods packaged for immediate consumption, whether on or off the premises
- Seeds and plants intended for growing food at home.
Certain vendors are also presumed to be selling food for immediate consumption and, therefore, cannot charge the reduced rate. This category includes:
- Caterers
- Concession vendors
- Entertainment facilities like theme parks and stadiums
- Fair and carnival vendors
- Gift shops
- Hamburger and hot dog stands
- Honor snack vendors
- Ice cream stands and trucks
- Mobile food vendors
- Movie theaters
- Newsstands
- Vending machine vendors
Any retail establishment where sales of food for immediate consumption constitute 80% or more of their total sales is also ineligible for the reduced rate. Businesses selling motor fuels must include those sales when calculating whether they meet the 80% threshold.
For a comprehensive list of eligible foods and more detailed information, refer to Tax Bulletin 5-78 on the Virginia Department of Taxation website. (Note: Replace with the actual URL if available)
Essential Personal Hygiene Products: What’s Taxed at the Reduced Rate?
Since January 1, 2020, Virginia has extended the reduced 1% sales tax rate to include essential personal hygiene products. These are categorized as follows:
Nondurable incontinence products:
- Diapers
- Disposable undergarments
- Pads designed to protect undergarments
- Bed sheets
- Pads designed to protect bed sheets and mattresses
- Incontinence products designed for insertion into the body
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Feminine hygiene products:
- Sanitary napkins
- Sanitary towels
- Tampons
- Menstrual sponges
- Menstrual cloths and pads
- Menstrual cups
- Pantyliners
- Period panties
- Other products used to absorb or contain menstrual flow
Further details about the reduced rate for essential personal hygiene products can be found in Tax Bulletin 19-8 on the Virginia Department of Taxation website. (Note: Replace with the actual URL if available)
Filing and Paying Sales Tax
Taxes collected on these items are reported and paid on your regular sales tax return. Consult the official Virginia sales tax resources for specific instructions and deadlines. (Note: Replace with the actual URL if available)
By understanding which food and personal hygiene products qualify for the reduced sales tax rate, consumers and vendors in Virginia can ensure accurate tax calculations and compliance.
