Virginia charges two taxes and one fee on fuel sold within the Commonwealth, and there are additional fuels tax requirements for operators of some commercial vehicles.
Motor Fuels Tax
The Motor Fuels Tax is imposed as fuels leave the terminal rack. The terminal rack is the point at which fuels physically leave a terminal and are delivered into a tank truck, rail car, or other means of transfer. The only exception is when fuels are imported into Virginia by ways other than the terminal transfer system or when fuels are blended in Virginia outside the terminal transfer system. In these cases, taxes are imposed upon import or blending.
The Motor Fuels Tax is deposited into the Commonwealth Transportation Fund. For rates and more information about Motor Fuel taxes, see Motor Fuels Tax.
You may be eligible for a refund of the Motor Fuels Tax if you purchase and use fuel for specific purposes. For more information, please see Fuels Tax Refunds.
Motor Vehicle Fuels Sales Tax (Wholesale Sales Tax)
The Wholesale Sales Tax is an excise tax levied on a distributor for each gallon of fuel sold to a retail dealer, or distributed by a distributor to itself for retail sale. Wholesale tax collections are tracked by locality and are transferred to the appropriate transportation commission or to the Virginia Department of Transportation (VDOT), who allocate it to the appropriate highway construction district.
The tax applies to every region and locality in the Commonwealth. Prior to July 1, 2020, the Wholesale Sales Tax applied to specific regions. See Wholesale Sales Tax and more information.
Storage Tank Fee
In addition to the Motor Fuels Tax, a Storage Tank Fee which is transferred to the Department of Environmental Quality (DEQ) is collected at the terminal rack on each gallon of fuel sold and delivered or used in the Commonwealth of Virginia. For more information, see Motor Fuels Tax.
Commercial Vehicles
Operators of certain commercial vehicles that weigh more than 26,000 lbs. and travel between Virginia and other jurisdictions need an International Fuels Tax Agreement license and must file quarterly tax returns with their base jurisdiction. For more information, see International Fuels Tax Agreement.
Virginia Excise Tax System (VAETS)
Virginia Excise Tax System (VAETS) is the primary filing and payment system for the Motor Fuels Tax and Wholesale Tax programs. For more information, see VAETS.