What is it?
A tax on the use of a shared vehicle arranged through a peer-to-peer vehicle sharing platform. The platform collects the tax from the person booking the vehicle, then sends the funds to Virginia Tax. This tax goes into effect October 1, 2020.
Rates are determined based upon the number of vehicles the shared vehicle owner has registered on any combination of vehicle sharing platforms.
“Large fleets” = vehicle owner has more than 10 vehicles registered on vehicle sharing platforms.
“Small fleets” = vehicle owner has 10 or fewer vehicles registered on vehicle sharing platforms
Beginning October 1, 2020, the tax on use of the shared vehicle will be the same as the motor vehicle rental tax. The exemptions to the motor vehicle rental tax also apply to the use of these shared vehicles.
Beginning October 1, 2020, through June 30, 2021, the tax will be 6.5% of the amount paid to the peer-to-peer vehicle sharing platform.
Beginning July 1, 2021, the tax will be 7%.
How to register
Vehicle owners don’t have to register with Virginia Tax. You will need to certify the size of your fleet when you register on the vehicle sharing platform. If you’re a small fleet owner, you’ll have to let the platforms know when the number of vehicles you’re sharing rises to more than 10.
Vehicle sharing platforms
- New businesses: Register online or by mail using the Business Registration Application (Form R-1).
- Existing businesses: If your business already has an account with Virginia Tax, log in to your Business Account and add the new tax type for your registration. If you don't have an online services account, enroll now. Or, add the new tax type by mail using Form R-1.
How to file and pay
Complete Form P2P and any appropriate schedules. Returns are due on the 20th of the month following the close of the filing period.
For more information, see our Motor Vehicle Rental and Vehicle Sharing Tax Guidelines.