West Virginia requires businesses to register with the State Tax Department and establishes nexus through both physical presence and economic activity thresholds.
The state's approach is particularly comprehensive because it applies sales tax to most services (not just tangible goods) and uses the standard $100,000/200 transaction economic nexus framework that became common after the Wayfair decision.
West Virginia's distinctive characteristics include its broad service taxation, immediate nexus obligations upon threshold crossings, and the requirement for all businesses to obtain a Business Registration Certificate before starting operations.
West Virginia includes both taxable and nontaxable sales in the economic nexus threshold calculation, and the state's broad service taxation makes it more comprehensive than many other states' approaches.
West Virginia establishes sales tax nexus through economic thresholds for remote sellers and immediate physical presence triggers for businesses with any in-state footprint.
West Virginia requires remote sellers and marketplace facilitators to collect and remit sales tax when they exceed either threshold in the current or previous calendar year:
The threshold calculation includes both taxable and nontaxable sales, making West Virginia's rule broader than states that count only taxable transactions. Once either threshold is met, collection obligations begin with the next transaction. There's no grace period for registration and compliance.
Marketplace facilitators must aggregate their direct sales with sales made on behalf of third-party sellers when determining nexus. Individual marketplace sellers don't include marketplace-facilitated sales in their personal threshold calculations if the facilitator is already collecting tax.
Physical activities that create immediate nexus regardless of sales volume include:
Businesses triggering nexus must register through West Virginia's MyTaxes portal before collecting sales tax. The registration process requires information on business structure, ownership details, and a description of activities.
West Virginia assigns filing frequency based on tax volume: monthly for larger sellers, quarterly for moderate-volume sellers, and annually for minimal-volume sellers.
West Virginia imposes a corporate net income tax on businesses engaged in activities within the state or earning income from West Virginia sources.
Nexus is established through traditional business activities rather than specific economic thresholds:
West Virginia applies specific nexus presumptions for financial organizations domiciled outside the state. Financial businesses are presumed to have nexus when they either:
Once nexus is established, businesses must register through the MyTaxes portal and file Form CIT-120 (Corporate Net Income Tax) annually. The return is due by the 15th day of the fourth month after the tax year ends (typically April 15 for calendar year filers).
Estimated payments are required quarterly if the expected tax liability exceeds certain thresholds. The state also imposes minimum tax requirements and provides extension procedures for businesses needing additional filing time.
Employment tax nexus in West Virginia is generally triggered when an employee performs work within the state, regardless of their official residence or the employer's location, except for nonresident employees temporarily working in the state for 30 days or less in a calendar year.
West Virginia considers all work performed within state boundaries subject to employment tax obligations:
Employment nexus requires multiple registrations with different agencies:
All employment registrations must be completed before issuing the first paycheck to West Virginia-based employees.
West Virginia's approach to modern business activities includes comprehensive taxation of digital products and services, creating broader nexus exposure for technology companies.
SaaS offerings and software sales are generally subject to West Virginia sales tax as taxable services, but most standalone digital products, such as ebooks, music, and movies, are not taxable under state law.
This broad service taxation means software subscriptions, streaming services, and electronically delivered products count toward both the $100,000 sales threshold and the 200-transaction count for economic nexus purposes.
Marketplace facilitators handling West Virginia sales must collect tax when they meet economic thresholds; however, individual sellers still need to include their marketplace sales when calculating whether they meet economic nexus thresholds.
However, affiliate marketing relationships, drop-shipping arrangements, or other third-party connections within West Virginia can establish physical presence nexus requiring immediate registration.
Establishing a tax or employment nexus in West Virginia often requires foreign registration with the Secretary of State.
Although tax registration and foreign entity qualification are separate processes, crossing economic nexus thresholds typically demonstrates sufficient business activity to require corporate registration under West Virginia's "doing business" standards.
West Virginia expects comprehensive documentation supporting nexus determinations and ongoing compliance:
Discern automates West Virginia compliance by monitoring your business activities against all nexus thresholds, handling required registrations across tax and corporate authorities, and maintaining ongoing filing obligations through a single platform.
Ready to streamline your West Virginia compliance requirements? Book a demo with Discern today.
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