Does West Virginia charge sales tax on services?
by April 29, 2024
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of West Virginia, which has a state sales tax rate of 6%.
Does West Virginia charge sales tax on services?
Services in West Virginia are taxable by default, with some exceptions. Here are some examples of tax exempt services in West Virginia:
- The construction, alteration, repair, improvement or decoration of real property, but only when the work performed results in a “capital improvement” to the real property. All other construction trade activities are subject to the sales tax unless otherwise exempt.
- Employee services: Services by an employee to the employer that are within the scope of the employment contract.
- Personal services such as barbering, hairstyling, manicuring and massaging
- Professional services such as those provided by doctors, lawyers, engineers, architects and CPAs
- Public utility services including sales of gas, steam, and water delivered through pipes and mains, sales of electricity, most telephone services and services of regulated public or common carries, bus and tax services
You can find more information on West Virginia’s exempt services here.
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at West Virginia sales tax, TaxJar’s guide to sales tax in West Virginia and the West Virginia Tax Division has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
