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 liability?

Question

Quizplus · Accepted Answer

Roxy's Virginia sales tax liability is based on her in-state sales of $1,000,000. At a 5% sales tax rate, the liability is $50,000 (1,000,000 x 0.05). Out-of-state sales are not subject to Virginia sales tax.

Roxy Operates a Dress Shop in Arlington, Virginia