Virginia alcohol tax permits and rules

DTC License Required: Yes

License Type: DTC Permit

License Fee: $230, plus one-time $195 fee

License Expiration: 1 year from issue date

License Bond: No

State Sales Tax: Yes

State Sales Tax Rate: 4.300%

Local Sales Tax: Yes

Local Sales Tax Range: 0%–2.7%

Sales Tax on Shipping: No

Wine Excise Tax: $1.51/gal

Consumer Limit: Two cases per person per month

Per State Aggregate: Unlimited

Sales and Use Tax: Monthly by the 20th

Excise Tax: Monthly by the 15th

Record Retention: At least 2 years

Product Restrictions: The sale and movement of wine products into and within the state of Virginia as well as the approval of product labels and franchise agreements is regulated by Virginia ABC. Prior to being sold within the state, all wine must be approved by the Virginia ABC Board.

Product Registration: Submit a list identifying all wine products that will be sold directly to consumers. Submit copies of federal label approvals for any products not approved for wholesale distribution.

Registration Fees: None

Product Requirements: All licensees shipping wine or beer shall affix a conspicuous notice in 16-point type or larger to the outside of each package of wine or beer shipped within or into Virginia, in a conspicuous location stating: “CONTAINS ALCOHOLIC BEVERAGES; SIGNATURE OF PERSON AGED 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”

*Nearly all states have some kind of rule regarding how wine must be labeled when being shipped direct to consumer. Please check for the unique rule for your state.

Tax can get complicated when it comes to direct-to-consumer (DTC) shipments. The beverage alcohol industry is different from other industries in that licensed alcohol shippers are required to register for sales tax in most states, independent of economic or physical nexus.

Depending on the state, sales and use tax can be applied at the state, county, city, or special district levels. Address accuracy is important to determine if a location falls into an incorporated or unincorporated section of a county or a special district.

On top of the sales tax requirements, alcohol taxes also apply to DTC shipments. Several states have “markup” taxes, where the retail value of the alcohol is multiplied by a percentage rate. Most of these markup taxes are either required or can be passed through to the consumer. 

Traditional “gallonage”-based excise taxes are also usually due on DTC shipments. Most of the time these are factored into the price of the item and not passed through to the consumer. In a few cases, these excise taxes are required to be passed on to the consumer. 

Rules and regulations for your winery, brewery, or other beverage alcohol business change frequently. Avalara for Beverage Alcohol helps distill the beverage alcohol compliance process so you can focus on your business.

Virginia DOR site

Please note: Tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this page is for informational purposes only and does not provide legal or tax advice.