Virginia Sales Tax Bond Guide
If you’re applying for a retailer license in Virginia, you may need this surety bond.
Bond Overview
- Purpose: To ensure businesses that sell personal property or accommodations pay their required sales tax
- Who Needs It: Personal property retailers in Virginia
- Regulating Body: The Department of Taxation: Office of Customer Services
- Required Coverage: $1,000–$100,000
- Premium Rate: 1–10%, credit–based
Learn all about the bond requirements and process in this guide.
What Is a Virginia Sales Tax Bond?
In Virginia, businesses are required to file sales tax monthly or quarterly depending on their tax liability. If a business repeatedly fails to file, they will be required to get a sales tax bond.
This ensures that the state receives payment for all sales and uses taxes, fines, and penalties.
How Much Do Sales Tax Bonds Cost?
Virginia sales tax bonds cost a small percentage of the coverage amount — typically 1% to 10% based on credit score.
Your exact bond amount will be determined by the Tax Commissioner, according to the Code of Virginia 58.1–630. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Sales Tax Bond?
Most retailers that sell tangible personal property or accommodations need to pay the Virginia sales tax.
Examples of tangible personal property include:
- Furniture
- Jewelry
- Livestock
- Vehicles
The Virginia Department of Taxation only requires the sales tax surety bond for retailers with a high tax liability and/or history of missed payments.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Virginia sales tax bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the Department of Taxation as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Virginia Sales Tax Bond Work?
A sales tax bond creates a legal contract between these three parties:
- Principal: You, the retailer(s) filing the bond
- Obligee: The Virginia Department of Taxation: Office of Customer Services requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of the Virginia Code, Chapter 6.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your sales tax bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
