If you sell tobacco products to customers in Virginia, you might need to become a licensed distributor and start paying tobacco tax. Businesses located outside of Virginia 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.

For more information: