Virginia Transient Occupancy Tax on Short-Term Rentals

Under Virginia Code Section 58.1-602 and 58.1-612.2, accommodations intermediaries such as Airbnb and Vrbo must collect and remit state retail sales and use tax on transient accommodations. Localities are separately authorized under Va. Code 58.1-3819 to impose transient occupancy taxes on lodging rentals under ninety continuous days. The state framework requires platforms to file returns and remit collected taxes, regardless of where the property is located within Virginia.

Failure to collect or remit transient occupancy or sales taxes may result in tax assessments, penalties up to thirty percent, interest charges, and revocation of business privileges.