Important Information Regarding Virginia’s Tobacco Products Tax
Today, Virginia Tax is notifying taxpayers of changes to the state's Tobacco Products Tax recently enacted by the Virginia General Assembly.
Beginning Jan.1, 2021, heated tobacco products will be taxed at the rate of 2.25 cents per stick for taxable sales or purchases occurring on and after Jan. 1, 2021. Heated tobacco products will not be subject to the stamping requirements imposed on cigarettes under the Virginia Cigarette Tax.
Additionally, the Virginia General Assembly adopted economic nexus for purposes of the Tobacco Products Tax. Beginning Jan. 1, 2021, a distributor shall be deemed to have sufficient activity within the commonwealth to require registration if such distributor:
- Receives more than $100,000 in gross revenue from sales of tobacco products in the commonwealth in the previous or current calendar year; or
- Engages in 200 or more separate tobacco products sales transactions in the commonwealth in the previous or current calendar year.
More information can be found in Tax Bulletin 20-11 and in the Laws, Rules, and Decisions section of our website.
If you have additional questions, go to www.tax.virginia.gov
, or contact the Tobacco Tax Unit at 804.371.0730.