U.S. Virgin Islands Sales Tax Guide (2026)
The U.S. Virgin Islands has no sales tax. Businesses owe a 5% gross receipts tax instead — a cost to remit, not collect.
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Key Takeaways
The US Virgin Islands has no retail sales tax; it levies a 5% gross receipts tax on a business's total receipts from doing business in the territory, with no deduction for cost of goods [1]. Businesses with annual gross receipts under $225,000 pay only on receipts above a $9,000 monthly exemption [1]. Because there is no sales tax, there is no economic nexus, no resale certificate, and no sales tax holiday, and SaaS, clothing, groceries, and digital goods are not subject to any retail sales tax [1]. A separate excise tax applies to goods imported into the territory [1].
Taxability Snapshot
SaaS
N/A
Clothing
N/A
Groceries
N/A
Digital Goods
N/A
Sales Tax Rates
The US Virgin Islands, a US territory, has no sales tax. Instead, every business operating in the territory pays a 5% gross receipts tax on its receipts. Customers do not pay a separate sales tax at checkout.
Component | Rate | Scope |
|---|---|---|
Sales tax | 0% | None |
Gross receipts tax (on business) | 5% | Business gross receipts |
Small businesses with annual gross receipts under $225,000 pay the 5% only on monthly receipts above a $9,000 exclusion.
Selling into other states? Use our US sales tax calculator to look up the combined rate for any US address.
Registration or Nexus Threshold
The US Virgin Islands has no general retail sales tax, so there is no sales-tax economic nexus and nothing to collect from customers at checkout. The territory instead levies a 5% gross receipts tax on a business's total receipts from doing business in the Virgin Islands, plus a separate excise tax on imported goods.
Filing Frequency & Deadlines
Businesses report the gross receipts tax on Form 720-VI filed with the Virgin Islands Bureau of Internal Revenue, generally monthly. Smaller businesses below the annual threshold may file on a less frequent schedule set by the Bureau.
Exemptions
Because the US Virgin Islands has no sales tax, there are no sales-tax exemptions for customers. SaaS and digital products are not subject to any USVI sales tax, though a provider doing business in the territory may owe the 5% gross receipts tax on its receipts.
Resale & Exemption Certificates
The US Virgin Islands does not issue retail sales tax resale certificates because it has no sales tax, and the gross receipts tax allows no deduction for goods purchased for resale [1]. The only threshold relief is the small-business exemption for businesses under $225,000 in annual gross receipts [1].
Penalties
There are no sales tax penalties in the US Virgin Islands. Late gross receipts tax filings carry penalties and interest under Bureau of Internal Revenue rules.
Audits & Appeals
The Bureau of Internal Revenue's Audit Enforcement Branch handles examinations [1]. For disputed taxes, a Virgin Islands taxpayer can petition the District Court of the Virgin Islands after a statutory notice of deficiency; there is no retail sales tax to appeal [1].
Sources
[1] USVI Bureau of Internal Revenue — Tax Structure (no sales tax; 5% gross receipts tax)
[2] USVI Bureau of Internal Revenue — Gross Receipts Tax Portal
[3] USVI Department of Licensing and Consumer Affairs — Business License Steps
Verified July 2026 against US Virgin Islands Bureau of Internal Revenue published guidance.
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Frequently Asked Questions
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This is an estimate based on location alone. The tax you owe also depends on what you sell, who you sell to and the exact delivery address. If you intend to rely on these rates, use the Kintsugi platform (opens in a new tab).