Who is Required to File Rental Tax Returns?

Rental taxes are levied on the gross proceeds from the rental of motor vehicles in Virginia. Individuals and companies who rent motor vehicles to others for a period less than twelve months must collect rental taxes and file rental tax returns with DMV.

Individuals or companies that rent motor vehicles are required to register as a rentor and obtain a certificate of registration. The certificate of registration authorizes the individual company to collect rental tax and exempts rental vehicles from the vehicle sales and use tax.

Additionally, the person or company must maintain records of all rental transactions, file monthly tax returns with DMV and submit the appropriate rental tax for the vehicles rented each month.

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