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Fuels Wholesale Sales Tax

Important Notice

Effective July 1, 2019, the Virginia Motor Vehicle Fuels Sales Tax (Wholesale Sales Tax) will be levied on fuel sold or delivered to retail dealers in several planning districts in Western Virginia. This tax will be administered in the same way that it is currently administered in the Northern Virginia and Hampton Roads areas.

What is the Fuels Wholesale Sales Tax?

The Wholesale Sales Tax is an excise tax levied on each gallon of fuel sold by a distributor to a retail dealer, or distributed by a distributor to itself for retail sale, sold in the following areas:

  • Northern Virginia Transportation Commission (NVTC) – Counties of Arlington, Fairfax, and Loudoun; Cities of Alexandria, Fairfax, and Falls Church.
  • Potomac and Rappahannock Transportation Commission (PRTC) - Counties of Prince William, Spotsylvania, and Stafford; Cities of Fredericksburg, Manassas, and Manassas Park.
  • Hampton Roads Planning District (HRPC) – Counties of Isle of Wight, James City, Southampton, and York; Cities of Chesapeake, Hampton, Franklin, Newport News, Norfolk, Poquoson, Portsmouth, Suffolk Williamsburg, and Virginia Beach. The counties of Gloucester and Surry are not included in the Hampton Roads Planning District.
  • Mount Rogers Planning District Commission (MRPC) – Counties of Bland, Carroll, Grayson, Smyth, Washington, and Wythe; Cities of Bristol and Galax.
  • New River Valley Regional Commission (NRVC) – Counties of Floyd, Giles, Montgomery, and Pulaski; City of Radford.
  • Roanoke Valley-Allegheny Regional Commission (RVAC) – Counties of Allegheny, Botetourt, Craig, Franklin, and Roanoke; Cities of Covington, Roanoke, and Salem.
  • Central Shenandoah Planning District Commission (CSPC) – Counties of Augusta, Bath, Highland, Rockbridge, Rockingham; Cities of Buena Vista, Lexington, Harrisonburg, Staunton, and Waynesboro.
  • Northern Shenandoah Valley Regional Commission (NSVC) – Counties of Clarke, Frederick, Page, Shenandoah, and Warren; City of Winchester.

Localities and Zip Code Tables

The tax is based on where the fuel is delivered for retail sale, therefore the physical address to include city, state and zip code is required to determine if the tax is applicable and how it should be reported. P.O. Boxes are not acceptable. Tables of the localities and zip codes where the tax applies are available below:

Licensing

Persons selling fuels to retail dealers are required to be licensed as a Wholesale Distributor, collect the wholesale sales tax from the purchaser and remit the tax to DMV. To apply for a Wholesale Distributor’s License, you must have an account in the VAETS system. You can apply for a new account by submitting a New Account Request. The licensing application may be completed within the VAETS system once you have an account.

Reporting

As a licensed Wholesale Distributor, you are required to file monthly returns, even if you have no activity for the month. All returns are required to be filed electronically using VAETS. In VAETS, you may manually input your monthly fuel activity or use an EDI (ASCII or EDIX12) filing format to upload activity information. You can find more information about filing in VAETS at VAETS Training Materials and Resources.

Motor Vehicle Fuels Sales Tax Rates

In accordance with Va. Code §§ 58.1-2295 and 58.1-2295.1, DMV is required to determine the statewide average distributor price of a gallon of unleaded regular gasoline and diesel fuel for the purpose of determining the applicable cents per gallon applicable tax rates. The excise tax amount is calculated by applying a tax rate of 2.1% to the statewide average distributor price for gasoline and diesel, with a floor price set at the February 20, 2013, amount. Rates are provided to Wholesale Distributors in December for the period beginning January 1 and ending June 30th; and in June for the period beginning July 1 and ending December 31.

To obtain the current tax rates, refer to Motor Vehicle Fuels Sales Tax Rates.

Payments: All Payments are to be made through the VAETS system.

  • All customers may pay via e-Check in VAETS. You will need your bank account routing and account information. E-Check payments can only be made on the current date, and cannot be scheduled in advance.
  • DMV also accepts payment via ACH Debit and ACH Credit; however, these payment methods require making special arrangements in advance with DMV. If you are already registered to pay with ACH Debit or Credit for other fuels taxes, you may continue to do so for WH tax. If you are not, but would like to pay using ACH Debit or Credit, please contact DMV for more information.

Information and News

Frequently Asked Questions (FAQs)

Contacts

  • Deaf or Hearing Impaired Only:
  • (800) 272-9268
  • Tax Services
  • Room 601
  • PO Box 27422
  • Richmond VA, 23269-7422