# U.S. Virgin Islands Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/us-virgin-islands
Published: June 17, 2026

The U.S. Virgin Islands has no sales tax. Businesses owe a 5% gross receipts tax instead — a cost to remit, not collect.

- **SaaS:** N/A
- **Clothing:** N/A
- **Groceries:** N/A
- **Digital Goods:** N/A

- **Effective date::** 
- **Scheduled change::** 

## 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

## 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.

## 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)](https://bir.vi.gov/content/booklets/tax_structure.pdf)

- [2] [USVI Bureau of Internal Revenue — Gross Receipts Tax Portal](https://gross-receipts.bir.vi.gov/)

- [3] [USVI Department of Licensing and Consumer Affairs — Business License Steps](https://dlca.vi.gov/businesslicense/steps.htm)

Verified July 2026 against US Virgin Islands Bureau of Internal Revenue published guidance.

## Frequently Asked Questions

### Does the US Virgin Islands have a sales tax in 2026?

No. The US Virgin Islands has no sales tax. It levies a 5% gross receipts tax on businesses instead.

### What is the US Virgin Islands gross receipts tax?

A 5% tax on the gross receipts of any business operating in the territory, with a $9,000 monthly exclusion for businesses under $225,000 in annual receipts.

### Do remote sellers collect US Virgin Islands sales tax?

No. There is no USVI sales tax to collect. A business operating in the territory may instead owe the 5% gross receipts tax.

### Is SaaS taxable in the US Virgin Islands?

There is no USVI sales tax on SaaS. A provider doing business in the territory may owe the 5% gross receipts tax on its receipts.

### How is the US Virgin Islands tax filed?

On Form 720-VI with the Virgin Islands Bureau of Internal Revenue, generally monthly.

### Does Kintsugi support the US Virgin Islands?

US Virgin Islands support is coming soon. Kintsugi covers US states and many jurisdictions today.

## US Sales Tax Calculator