Roxy operates a dress shop in Arlington, Virginia. Roxy also ships dresses nationwide upon request. Roxy's Virginia sales are $1,000,000 and out-of-state sales are $200,000. Assuming that Virginia's sales tax rate is 5 percent, what is Roxy's Virginia sales and use tax collection obligation?

Question

Quizplus · Accepted Answer

Roxy's Virginia sales tax collection obligation is $1,000,000 x 5% = $50,000. However, since she also ships dresses nationwide, she may have an obligation to collect and remit sales tax in other states as well. But based on the information given, her Virginia sales and use tax collection obligation is $50,000.

Roxy Operates a Dress Shop in Arlington, Virginia