A Virginia sales tax exemption certificate is a form you complete and hand to a seller so the seller can sell to you without charging Virginia sales tax. The form declares who you are, why you qualify, and what type of property you are buying. Give the seller the right form, filled out completely, and the tax comes off at the point of sale.
Which form you use depends on why you qualify. Virginia does not issue a single universal exemption card. The state has separate certificates for resellers, manufacturers, farmers, government buyers, nonprofits, and out-of-state dealers, and using the wrong one can void the exemption.
Who Can Use an Exemption Certificate
Virginia limits exemption certificates to specific buyer types and specific uses. You may qualify if you fall into one of these categories:
- Registered Virginia dealers buying goods for resale, lease, or rental, or buying packaging materials for goods they sell.
- Manufacturers, processors, and miners buying machinery, tools, fuel, raw materials, or supplies used directly in production.
- Farmers, commercial watermen, and forest product harvesters buying equipment and supplies used in production for market, under Virginia Code § 58.1-609.2.
- The Commonwealth of Virginia, its political subdivisions, and the United States government buying property for official use.
- Qualifying 501(c)(3), 501(c)(4), and 501(c)(19) nonprofits that have applied to Virginia Tax and been issued a certificate of exemption.
The exemption only reaches purchases that match the qualifying activity. A manufacturer buying steel for its production line qualifies; the same manufacturer buying break-room furniture does not. A farmer buying feed for market livestock qualifies; the same farmer buying party decorations does not.
Which Virginia Form to Use
Match the form to your buyer type and the reason for the exemption. Every one of these is on the Virginia Department of Taxation’s Forms Library.
- Form ST-10 — Resale. For registered Virginia dealers buying tangible personal property for resale, lease, or rental, or buying packaging materials.
- Form ST-11 — Manufacturing. For manufacturing, processing, or mining operators buying industrial materials, machinery, tools, fuel, or supplies used directly in production.
- Form ST-12 — Government. For the Commonwealth, its political subdivisions, and the U.S. government buying property for official use. It does not cover privately owned corporations, even those with federal charters.
- Form ST-18 — Agriculture. For farmers and veterinarians buying exempt agricultural items like commercial feeds, seeds, farm machinery, and agricultural chemicals.
- Form NP-1 — Nonprofits. For nonprofits that have applied to Virginia Tax and received an exemption under § 58.1-609.11.
- Form ST-14 — Out-of-State Dealers. For out-of-state dealers buying property in Virginia for immediate transport out of the state in their own vehicle for resale elsewhere. A separate ST-14 is required for each transaction.
What a Valid Certificate Must Contain
Virginia Code § 58.1-623 sets out what a valid certificate needs. The form must:
- Be signed by an authorized representative of the purchasing entity.
- Show the buyer’s legal name and address.
- Include the buyer’s certificate of registration number, if one has been issued.
- Describe the general type of property being purchased.
- State the specific reason for the exemption.
Do not skip fields. Under Virginia’s administrative rules, a certificate that is “incomplete, invalid, infirm or inconsistent on its face is never acceptable, either before or after notice.” If the seller accepts an incomplete certificate anyway, the seller loses the liability protection the certificate normally provides, and any uncollected tax, interest, and penalties can be assessed against the seller on audit. In practice, sellers who spot a problem will refuse the form and charge the tax.
Blanket Certificate or One-Time Certificate
Virginia allows blanket exemption certificates for ongoing purchasing relationships. Form ST-10, for instance, states the certificate “shall remain in effect until revoked in writing by the Department of Taxation.” One properly completed certificate on file with a supplier covers all qualifying purchases going forward, so you do not have to fill out a fresh form every order.
The blanket only covers the type of purchase indicated on the form. If you start buying a different category of goods from the same supplier, you may need a second certificate for those purchases. And Form ST-14, for out-of-state dealers moving property out of Virginia, is transaction-by-transaction only — a new form for each purchase.
How to Give the Certificate to the Seller
Present the completed certificate to the seller at the time of purchase, or, for a blanket certificate, before the first qualifying transaction. Either a paper or electronic copy works. Once the seller has a valid certificate on file, the seller is generally relieved of the obligation to collect and remit sales tax on the covered purchases.
Virginia Code § 58.1-623 provides that a valid certificate “shall relieve the person who takes such certificate from any liability for the payment or collection of the tax, except upon notice from the Tax Commissioner that such certificate is no longer acceptable.” As long as the seller accepts the certificate in good faith and it looks complete and reasonable for your business, the seller is protected. The tax responsibility shifts to you: you must either use the goods for the stated exempt purpose or pay use tax directly.
Online Marketplaces
Major online retailers run their own enrollment processes. Amazon’s Tax Exemption Program requires you to enroll through a self-guided wizard, providing your entity type, organization address, and exemption documentation. The uploaded certificate must match the business name or address on the Amazon account, be dated and signed, and describe the types of items purchased. Amazon does not accept articles of incorporation, W-9s, or certificates of registration alone as exemption documentation. Enrollment typically activates within about 15 minutes. Amazon’s program does not support partial exemptions, so if you qualify for exemption on only some purchases, you have to request refunds order by order.
Purchases the Certificate Will Not Cover
Even a valid certificate has limits. Some purchases sit outside the general sales tax exemption framework entirely:
- Motor vehicle purchases are subject to a separate Motor Vehicle Sales and Use Tax collected by the DMV at titling, not the general retail sales tax. Exemptions from the vehicle tax use a different form, SUT 3, and are governed by Virginia Code § 58.1-2403.
- Restaurant meals and short-term lodging are generally taxable even for otherwise exempt entities. Government entities buying prepared meals may use Form ST-12, but most other exempt buyers cannot avoid tax on dining and hotel stays.
- Personal purchases unrelated to your qualifying activity are never exempt. A farmer buying a television for home use cannot claim the agricultural exemption, whatever form the supplier has on file.
A certificate “cannot be used to make a tax-free purchase of any item of tangible personal property not covered by the exact wording of the certificate.” Stretching a certificate beyond its stated scope is misuse, not a gray area.
Nonprofits: An Extra Step Before You Get a Certificate
Holding 501(c)(3) status from the IRS does not by itself exempt a nonprofit from Virginia sales tax. You have to apply separately to the Virginia Department of Taxation and be issued a certificate before you can use Form NP-1.
To qualify under Virginia Code § 58.1-609.11, a nonprofit must be exempt from federal income tax under IRC § 501(c)(3), § 501(c)(4) with a charitable purpose, or § 501(c)(19); comply with state solicitation laws; and keep annual administrative costs, including salaries and fundraising, at 40 percent or less of annual gross revenue. If gross annual revenue was at least $750,000 in the previous year, the nonprofit must submit a financial review by an independent CPA. If gross annual revenue was at least $1.5 million, the Department may require a full financial audit instead.
The approved certificate carries a specific expiration date. Unlike blanket resale certificates, nonprofit certificates expire and must be renewed. Virginia Tax runs an online tool called Nonprofit Online for renewing expiring certificates, editing registration information, and reprinting lost certificates.
Records to Keep and Consequences of Misuse
Keep copies of every exemption certificate you issue. Virginia Tax recommends retaining tax records for at least three years from the due date of the return or the filing date, whichever is later. Digital storage is fine as long as the records are accessible if an auditor asks for them. Update your certificates when your business structure changes, your registration number changes, or the Department updates the form.
Misuse carries real cost. Virginia Code § 58.1-623.1 addresses misuse of exemption certificates. Using a certificate for purchases that do not actually qualify makes you liable for the unpaid tax plus interest and any assessed penalties, and the Department can suspend your exemption privileges. Repeated misuse invites closer scrutiny of every transaction you make.
If a purchase might not qualify, pay the tax at the register. Refunding a tax that was collected unnecessarily is far easier than paying one that should have been collected in the first place.