If you sell tobacco products to customers in Virginia, you might need to become a licensed distributor and start paying tobacco tax. Beginning January 1, 2021, businesses located outside of Virginia will need to be licensed as a tobacco products distributor if all of their sales to Virginia customers this year or last year totaled at least:
- $100,000 or
- 200 or more transactions
You should include sales to both wholesale and retail customers when calculating your total sales. If your Virginia sales meet or exceed this threshold, and you are not currently a licensed tobacco products distributor, you’ll need to apply to become one.
If you will be liable for tobacco tax as a result of this, but weren’t required to file it before, you can still sell tobacco to Virginia customers without becoming licensed until July 1, 2021, if:
- you file and pay your tobacco products tax returns, and
- you apply to become a licensed distributor before April 1, 2021
For more information: