Is Virginia going to tax digital services?

HB 900 proposed taxing digital personal property and services from 2027-01-01, but it was continued to the 2027 session and has not been enacted.

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Are information services taxable in Virginia?

Not taxable

No. Virginia exempts services that do not involve an exchange of tangible property, so information services and data processing are not taxed.

Short answer	Not taxable
Authority	Va. Code § 58.1-609.5(1); P.D. 17-14
Last reviewed	2026-09-30

Why

Va. Code § 58.1-609.5(1) exempts service transactions in which any tangible property is only an inconsequential element. Information services and data processing fit that rule, and Tax Commissioner rulings such as P.D. 17-14 apply it to remotely accessed services.

Business vs. consumer buyers

Because Virginia does not tax this category, buyer type does not change the answer.

Where the line is

HB 900 would tax digital personal property and services from 2027-01-01. It was continued to the 2027 session and has not been enacted.

How AgentTax classifies information services

Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.

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Frequently asked questions

Is Virginia going to tax digital services?: HB 900 proposed taxing digital personal property and services from 2027-01-01, but it was continued to the 2027 session and has not been enacted.

Sources

Va. Code § 58.1-609.5(1)
P.D. 17-14

This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.