A Virginia sales tax exempt form is the certificate a buyer gives a seller to remove sales tax from a qualifying purchase, and Virginia publishes a different form for each type of exemption rather than a single all-purpose one. Handing over the wrong certificate is treated the same as handing over none at all, so the first job is matching the form to the reason the purchase is exempt.
Which Form Matches Your Exemption
The Virginia Department of Taxation publishes more than a dozen exemption certificates. These are the ones most buyers actually need:1Virginia Tax. Sales Tax Exemptions
- ST-10 — resale. Used by a registered Virginia dealer buying tangible personal property for resale, lease, or rental, or buying packaging materials for products it will sell.
- ST-10A — printed materials stored in Virginia for 12 months or less and distributed outside the state, plus advertising in newspapers, magazines, billboards, and broadcasting.
- ST-11 — industrial production. Machinery, tools, fuel, and supplies used directly in manufacturing, processing, refining, mining, research and development, pollution control, brewing, and advanced recycling.
- ST-11A — agricultural materials and equipment, data center equipment, temporary storage by contractors, railroad common carriers, and spaceport activities. Some ST-11A uses require a written application to the Department before a certificate issues.
- ST-11B — semiconductor manufacturing: cleanrooms, equipment, fuel, and supplies used in semiconductor production.
- ST-12 — purchases by federal, state, or local government entities.
- ST-13 — prescription drugs, medical supplies, durable medical equipment, dialysis supplies, and specialized equipment for people with disabilities.
- ST-13A — nonprofit churches, for items used in worship, ministry work, or prepared meals.
- ST-15 — residential heating fuels.
The distinction between ST-10 and ST-11 catches people out. A manufacturer who hands a supplier the resale certificate instead of the industrial one has submitted a form that doesn’t match the actual exemption, and that mismatch can void the exemption during an audit.
The word “directly” also does a lot of work on the ST-11. Machinery, tools, fuel, and supplies qualify only when the preponderance of their use is in actual production. Office furniture, delivery-truck parts, and general business supplies don’t qualify, even at a manufacturer.2Virginia Code Commission. Virginia Code 58.1-609.3 – Commercial and Industrial Exemptions
Government purchases on the ST-12 have covered prepared food and catered meals since 2016, along with tangible personal property generally.3Virginia Department of Taxation. Virginia Sales and Use Tax Exemptions
How to Fill It Out So It Holds Up
The fields are similar across forms. Taking the ST-10 as the working example, you need your business’s legal name, mailing address, Virginia sales tax account number, the supplier’s name, and the date.4Virginia Department of Taxation. Virginia Sales and Use Tax Certificate of Exemption
You then check a box or write a description matching the purpose of the purchase — resale, lease, or packaging on the ST-10, for instance. An authorized representative of the purchasing business signs and dates the form. That signature is a legal declaration that the purchase qualifies for the exemption, not a formality.
Virginia’s regulation says an incomplete, invalid, or facially inconsistent certificate is “never acceptable,” even before the Department of Taxation issues any notice about it.5Virginia Code Commission. 23 Virginia Administrative Code 10-210-280 – Certificates of Exemption Leaving off your tax account number, skipping the signature, or checking a box that doesn’t match what you’re actually buying gives the seller no obligation to honor it. The seller then has to charge tax, and if the seller doesn’t, the seller becomes liable for it.
How Long One Certificate Lasts
Most Virginia exemption certificates work as blanket certificates. The ST-10 states that it applies to “all tangible personal property purchased from the above named supplier on and after this date” unless a specific order says otherwise, and it stays in effect until the Department of Taxation revokes it in writing.4Virginia Department of Taxation. Virginia Sales and Use Tax Certificate of Exemption
A supplier needs only one properly completed certificate per customer on file. You don’t hand over a fresh form for every order. But the coverage is only as broad as the purpose you stated. If your purchases shift into something the certificate doesn’t cover, such as office supplies bought under a resale certificate, the blanket doesn’t stretch to reach them.
Nonprofits: Approval Before Any Form
Nonprofits don’t just pick up a form and go. The organization applies to the Virginia Department of Taxation and receives an official exemption letter before making any tax-free purchases. The qualifying criteria under Virginia Code 58.1-609.11 are specific:6Virginia Code Commission. Virginia Code 58.1-609.11 – Exemptions for Nonprofit Entities
- Federal tax-exempt status under IRC Section 501(c)(3), under 501(c)(4) if organized for a charitable purpose, or under 501(c)(19) for veterans’ organizations. An organization with annual gross receipts under $5,000 can qualify if it is organized for one of those same purposes.
- Compliance with all Virginia solicitation laws, with verification when applicable.
- General administrative costs, including salaries and fundraising, no more than 40% of annual gross revenue.
- A financial review by an independent CPA for organizations with gross annual revenue of at least $750,000. The Department may require a full financial audit at $1.5 million or more.
- A copy of federal Form 990 or 990-EZ if the organization filed one.
Once approved, the Department issues an exemption letter with a specific expiration date. Based on issued letters, the typical validity period is five years.7The George Washington University. Retail Sales and Use Tax Certificate of Exemption Virginia Tax sends a renewal notice 120 days before expiration, and the organization completes the renewal online.8Virginia Tax. Nonprofit Online FAQs When the letter lapses, tax-free purchasing stops until a new letter issues, and every regular vendor needs the updated copy.
Nonprofit churches take a different route. They use the ST-13A for items bought for worship services, ministry work, or prepared food for church events, rather than the general nonprofit exemption letter.
When a Tax-Free Purchase Becomes Taxable Later
Buying something tax-free doesn’t lock it in tax-free. If you buy inventory on a resale certificate and then pull items off the shelf for personal use or office use, you owe Virginia’s consumer use tax on those items. The same applies when a manufacturer buys supplies under an ST-11 and diverts them to a non-production use like office decoration.9Virginia Tax. Consumer’s Use Tax
Use tax also applies when you buy something from an out-of-state seller that didn’t collect Virginia sales tax and you bring it into the state to use here. The rate mirrors the sales tax rate for your locality. The Department of Taxation can assess use tax during an audit and add penalties and interest.
Penalties for Getting It Wrong
Virginia treats the misuse of exemption certificates as a criminal matter. Anyone who gives or knowingly receives a false or fraudulent exemption certificate is guilty of a Class 1 misdemeanor under Virginia Code 58.1-636, carrying up to 12 months in jail, a fine of up to $2,500, or both.10Virginia Code Commission. Virginia Code 58.1-636 – Penalty for Failure to File Return or Making False Return The Department will also assess the unpaid tax plus interest and civil penalties.
The most common problem isn’t outright fraud. It’s the business owner who uses a resale certificate to buy something for personal use because the certificate has always been on file and nobody checks. During an audit, the Department doesn’t draw much distinction between laziness and intent when assessing the tax owed.