If you bought items that were used, stored, or consumed in West Virginia and no West Virginia sales tax was collected at the time of purchase, you may owe West Virginia Use Tax. Common examples include purchases made online, through mail-order catalogs, from television shopping networks, or from out-of-state sellers.
West Virginia Use Tax helps ensure that purchases are taxed consistently, whether you buy them from a West Virginia retailer or from a seller located elsewhere.
What Is West Virginia Use Tax?
West Virginia imposes a 6% state use tax on taxable tangible personal property and taxable services when sales tax was not paid at the time of purchase. The use tax rate generally matches the state's sales tax rate.
You may owe use tax if:
- You purchased items online and no West Virginia sales tax was charged.
- You bought goods from an out-of-state retailer.
- You purchased items through a catalog or mail-order company.
- You bought property tax-free for resale or another exempt purpose and later used it in a taxable manner.
- You gave away property that was purchased without paying sales tax.
What Is Municipal Use Tax?
In addition to the 6% state use tax, some West Virginia cities and municipalities impose a municipal sales and use tax.
If you use, store, or consume taxable property or services in a municipality that imposes a local sales and use tax, and you did not previously pay that tax, you may also owe municipal use tax.
Can I Receive Credit for Tax Paid to Another State or Municipality?
Yes. West Virginia generally allows a credit for legally imposed sales or use taxes paid to another state or municipality on the same purchase.
For example:
- If you paid 7% combined sales tax on a purchase in Ohio and your combined West Virginia state and local tax rate is also 7%, no additional West Virginia use tax would generally be due.
If the tax paid elsewhere is lower than the West Virginia rate, you may owe only the difference.
How Do I Enter West Virginia Use Tax in the Program?
To enter state use tax:
- Go to State Section.
- Select the 3 dots to Edit the West Virginia Return.
- Choose Miscellaneous Forms.
- Select Use Tax Schedule (Schedule UT).
- Enter your taxable purchases.
How Do I Enter Municipal Use Tax?
To enter municipal use tax:
- Go to State Section.
- Select Edit West Virginia Return.
- Choose Miscellaneous Forms.
- Select Use Tax Schedule (Schedule UT).
- Open Municipal Use Tax Calculation.
- Enter your municipality and any taxable purchases subject to local use tax.
How Is Use Tax Calculated?
For state use tax:
- Enter the total amount of taxable purchases.
- Multiply the purchase amount by the 6% state use tax rate.
For municipal use tax:
- Enter the total taxable purchases used within the municipality.
- Apply the municipality's applicable tax rate.
- Reduce the amount by any qualifying sales or use tax already paid to another state or municipality.