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Virginia Grocery Tax

As of January 1, 2023, Virginia’s grocery tax decreased from 2.5% to 1%.


Today we’re sharing more information on the Grocery Tax that recently went into effect.


The grocery tax includes most staple grocery items, but does not include alcohol, tobacco or prepared hot foods. Formally, Virginia was one of 13 states that taxed groceries.


See what are some items that do qualify under the tax and what services do not qualify below.


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What qualifies as food for home consumption?


Most staple grocery items and cold prepared foods packaged for home consumption qualify for the reduced sales tax rate.


Items that don’t qualify for the reduced rate include:

  • alcoholic beverages;

  • tobacco;

  • prepared hot foods packaged for immediate consumption on or off premises;

  • seeds and plants used to grow food for home consumption.


Certain types of vendors are presumed to be selling food for immediate consumption, and are not allowed to charge the reduced rate. These include:

  • caterers;

  • concession vendors;

  • entertainment facilities (theme parks, stadiums, etc.);

  • fair and carnival vendors;

  • gift shops;

  • hamburger and hot dog stands;

  • honor snack vendors;

  • ice cream stands and trucks;

  • mobile food vendors;

  • movie theaters;

  • newsstands;

  • vending machine vendors.


Any retail establishment whose sales of food for immediate consumption constitutes 80% or more of their total sales also may not charge the reduced rate. (A business that also sells motor fuels should include motor fuel sales when determining if they meet the 80% rule.)


For more information on the reduced tax on food for home consumption, including detailed lists of eligible foods, please see Tax Bulletin 5-78.



What qualifies as an essential personal hygiene product?


Essential personal hygiene products that qualify for the reduced tax rate as of January 1, 2020 include:


Nondurable incontinence products:

  • diapers;

  • disposable undergarments;

  • pads designed to protect undergarments;

  • bed sheets;

  • pads designed to protect bed sheets and mattresses;

  • incontinence products designed to be inserted in the body


Feminine hygiene products:

  • sanitary napkins;

  • sanitary towels;

  • tampons;

  • menstrual sponges;

  • menstrual cloths and pads;

  • menstrual cups;

  • pantyliners;

  • period panties;

  • other products used to absorb or contain menstrual flow


For more information on the reduced rate for essential personal hygiene products, please see Tax Bulletin 19-8.

 

Filing and paying:

File and pay the tax on these items on your https://www.tax.virginia.gov/how-file-and-pay-sales-and-use-tax.


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