How to explain West Virginia Municipal Sales and Use Tax?
All tangible goods and services which are sold to local or out of state buyers are subject to sales and use tax unless the West Virginia State Tax Department have included them in the non-taxable items list.
Sales and use tax is collected from a purchaser on behalf of the West Virginia State Tax Department, which is paid back to the State of WV to spend on local projects.
A use tax is paid to the West Virginia Tax Department if it was not collected by the West Virginia vendor. It is levied on out of state buyers on those who do not pay sales tax on taxable items to the seller at the time of purchase for taxable items.
Difference between Municipal Sales and Use Tax West Virginia?
The difference between municipal and use tax is explained below:
West Virginia Municipal Sales Tax: It is also referred sales tax. Municipal Tax is collected from the West Virginia buyers on taxable items which are listed on the West Virginia State Tax Department website.
Use Tax West Virginia: Whereas, use tax is generally charged from an out of state buyer to stimulate a local buyer to buy from local West Virginia vendor instead of a foreign state vendor. Thus, use tax resolution stops by-passing sales tax on taxable items.
How does an out of state buyer report sales and use tax to the West Virginia Tax Department?
A WV buyer reports use tax on the income tax return on purchases which are bought without paying a sales tax on the taxable items either from an out of state or a West Virginia Vendor.
How to apply sales and use tax for West Virginia?
A sales and use tax application is submitted to the West Virginia Tax Department website electronically.
What is a filing fee to get a sales and use tax of the state of West Virginia?
The state of West Virginia asks $30.00 to issue a sales and use tax license to to sell taxable goods and services.
What is an estimated time of the West Virginia to issue a Municipal Sales and Use Tax Permit?
Generally, the state of West Virginia issues Municipal and Sales Tax License in two business days unless there is a flaw in the sales tax application and the WV Tax Department require additional information to process the sales and use tax application.
What is business and occupation tax in West Virginia?
Municipalities of the state of West Virginia, which do not levy sales and use tax impose business and occupation tax to a buyer who buys taxable products.
What types of businesses are liable for the sales and use tax in West Virginia?
The following businesses are required to register for sales and use tax registration with the West Virginia department of revenue. A complete list is published on the WV state site which is cited for the taxable businesses.
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Banks (most items)
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Contract Miners (most items not directly used or consumed in manufacturing production)
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Contractors (most items)
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Hospitals (most items)
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Manufacturers (most items not directly used or consumed in manufacturing production)
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Professionals (most items)
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Real Estate Management Companies (most items)
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Retailers (most items not resold)
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Service Providers (most items not resold)
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Wholesalers (most items not resold)
Described few examples below to explain how to charge sales tax on taxable items and services in the state of West Virginia:
Use Tax Collection Methodology: A West Virginia buyer buys an electronic item from an out of state supplier such as "from the state of Texas" and does not pay sales tax on taxable item. In this example; West Virginia buyer is responsible to remit use tax to the state of West Virginia department of revenue directly.
Sales Tax Collection Methodology: A West Virginia buyer purchases a taxable item from a local seller/vendor. In this context a West Virginia seller holds an authority to collect sales tax from WV buyers.
What are the sales and use tax filing deadlines in the state of West Virginia?
The sales and use tax is reported on a Form WV/CST-200CU which is due on or before the 20th day of the month following the ending of the filing period.
What are the responsibilities of a West Virginia Sale and Use Tax Certificate Holder?
A reseller of a West Virginia holds following authority and responsibility:
Sales and Use Tax permit is compulsory to post on the business location prominently for a buyer and the taxing authority.
A sales and use tax permit is renewed on time in order to collect sales and use tax on the taxable items.
Sales tax returns are required to file on time.
Sales and use tax is collected on the gross receipt which is included in shipping and handling.
Who collects sales and use tax in West Virginia?
A vendor/seller collects sales and use tax on behalf of the West Virginia Department of Revenue.
What is the current sales and use tax West Virginia?
Current sales and use tax in the state of West Virginia is 6% to 7%, which depends on the municipal area where a business is conducted. It is advised to cite West Virginia Tax Department website to calculate accurate sales tax on the taxable goods and services.
What happens if the vendor does not collect sales and use tax from a buyer?
It is the seller's or the vendor's responsibility to pay sales tax on taxable goods and services to the department of revenue regardless sales tax was charged to a buyer or not. The department of revenue website is cited to print a list of taxable and nontaxable items.
