Fuels tax is imposed as the 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.
Virginia divides fuels into two categories: motor fuels and alternative fuels.
You can obtain tax rates for motor and alternative fuels by referring to the Fuels Tax Rates page.
In addition to the fuels tax, a Storage Tank Fee is collected on each gallon of the following fuels sold and delivered or used in the Commonwealth of Virginia.
The storage tank fee will not be imposed on any of these fuels when they are sold and delivered to the United States government for exclusive use. In addition, the storage tank fee will not be imposed on alternative fuel or aviation jet fuel.
If you are buying or selling fuel in bulk in Virginia, or if you are importing or exporting fuel in bulk, you may be required to obtain a license. Distributors and Permissive Suppliers may elect to be licensed.
Suppliers, Importers, Blenders, Aviation Consumer, Alternative Fuel Providers, Retailers of Alternative Fuel, and Bulk Users of Alternative Fuel pay the fuels tax to DMV.
For more information, please refer to Paying Fuels Tax.
All persons issued a Virginia fuels tax license are required to file fuel activity information except exporters.
Fuel activity information and tax payments are due in the second month following the month in which the fuel was sold, imported, or purchased.