Who collects Virginia sales tax on dropshipped orders?

You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.

Will my dropshipper charge me Virginia sales tax on the wholesale?

Only if your dropshipper has Virginia nexus AND you can't provide a valid VA resale certificate. Obtain resale certificates for every state where your dropshipper operates.

Does dropshipping trigger economic nexus in Virginia?

Yes, your retail revenue into Virginia still counts toward the $100,000 in gross sales OR 200 transactions threshold, independent of how fulfillment happens.

Can I use an out-of-state resale certificate for a dropshipper in Virginia?

Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your VA dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Virginia's current rule with its Department of Revenue. Verified 2026-06-27.

Virginia Dropshipping Sales Tax Guide — 2026

Updated 2026-07-20

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-20.

Guide content last reviewed: 2026-07-20

If your Dropshipping business sells $100,000 or 200 transactions into Virginia in a calendar year, you have economic nexus and must register, collect, and remit Virginia sales tax.

Dropshipping sales tax in Virginia

As of June 2026, a Virginia drop shipment is a three-party sale: you collect Virginia sales tax from your customer on the retail price once your sales into the state pass $100,000 or 200 transactions, while your supplier charges you tax on the wholesale invoice only when it has Virginia nexus and you can’t give it a valid resale certificate.

Dropshipping into Virginia raises three distinct tax questions. First, you (the retailer) have to collect and remit Virginia sales tax on your retail sales if you exceed $100,000 or 200 transactions. Second, your dropship supplier may charge YOU sales tax on the wholesale invoice if they have Virginia nexus and you can't present a valid resale certificate. Third, the marketplace (if any) handles its own tax on facilitated transactions.

Virginia applies 5.30% as the base state rate; local add-ons average 0.45%.

Resale certificates: which document each state accepts

If you hold a Virginia sales tax permit, you can usually issue your dropshipper a VA resale certificate so it does not charge you sales tax on the wholesale invoice.
No Virginia permit yet? Two multistate forms cover most states: the Streamlined Sales Tax Certificate of Exemption (SST form F0003), honored by all 24 SST member states, and the MTC Uniform Sales & Use Tax Resale Certificate, accepted by roughly 36 states.
A handful of states reject an out-of-state resale certificate from the true retailer in a drop shipment and effectively require in-state registration or extra paperwork — notably California, Florida, Hawaii, Illinois, Maryland, and Massachusetts. Florida also requires the supplier to obtain a transaction authorization number before honoring an MTC certificate. In those states a home-state certificate alone may not protect your supplier, so confirm the rule with that state’s Department of Revenue.

Sources: MTC Uniform Sales & Use Tax Resale Certificate (multijurisdiction) and the Streamlined Sales Tax Governing Board. date_retrieved: 2026-06-27. State acceptance changes — verify with the relevant state DOR before relying on a multistate certificate.

Common dropshipping mistakes in Virginia

Treating your dropshipper's nexus as if it obligates them to collect from the end customer — no, they invoice you at wholesale; you invoice the customer at retail. Only the retail transaction is subject to collection duty.
Forgetting that your retail revenue into Virginia still counts toward the economic nexus threshold, independent of the dropshipping arrangement.
Not keeping resale certificates on file — your supplier will charge you tax (and you'll have already collected from the customer), eroding margin.

Virginia nexus note

Economic nexus in Virginia triggers when remote sellers exceed $100,000 in gross sales OR 200 or more separate transactions into Virginia in the current or preceding calendar year — whichever is met first.

What to do next

Read the full Virginia overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Dropshipping sales tax in other states

Compare Virginia's dropshipping rules with nearby and similar states' dropshipping sales tax guides:

Frequently asked questions

Who collects Virginia sales tax on dropshipped orders?: You do, as the retailer. Your dropshipper invoices you at wholesale; you invoice the customer at retail. Collection duty follows the retail transaction — that's you.
Will my dropshipper charge me Virginia sales tax on the wholesale?: Only if your dropshipper has Virginia nexus AND you can't provide a valid VA resale certificate. Obtain resale certificates for every state where your dropshipper operates.
Does dropshipping trigger economic nexus in Virginia?: Yes, your retail revenue into Virginia still counts toward the $100,000 in gross sales OR 200 transactions threshold, independent of how fulfillment happens.
Can I use an out-of-state resale certificate for a dropshipper in Virginia?: Usually yes — most states accept the Streamlined (SST form F0003) or MTC multijurisdiction resale certificate, so your VA dropshipper can take it instead of charging you tax on the wholesale invoice. But California, Florida, Hawaii, Illinois, Maryland, and Massachusetts reject an out-of-state certificate from the true retailer in a drop shipment and effectively require in-state registration (Florida also wants a transaction authorization number). Confirm Virginia's current rule with its Department of Revenue. Verified 2026-06-27.

Sources

date_retrieved: 2026-05-27