Extension article: Direct Marketers and the Virginia Sales Tax



By USDA

Spring has sprung, and soon farmers markets across the state will be buzzing with farmers selling their Virginia-grown products.

Virginia Cooperative Extension put out an excellent article in 2008 for farmers who direct market their products on collecting Virginia sales tax. We thought it would be helpful to post it here for those of you selling directly to consumers.

We'd like to note one update that has occurred since the article was published. During the 2011 Virginia General Assembly, legislation passed that states individuals who raise and sell agricultural products at local farmers markets and roadside stands do not have to collect sales tax if their annual income from their sales does not exceed $1,000. The seller is also exempt from collecting the litter tax if his annual income from such sales does not exceed $1,000, and that any container he provides to hold purchased items has been previously used.