Virginia Nonprofit State Tax Overview

- Updated April 29, 2020 - 8.00 AM - Admin, ExpressTaxExempt

Read through this page to explore everything related to the State of Virginia’s registration and reinstatement process of charity organizations.

To offer a comprehensive understanding, we have listed the filing methods the Virginia state accepts, details of the form to file, how an organization can extend its filing deadline, the penalty imposed, and other links to important resources.

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1. Registrations and Reinstatements of Charity Organizations for Virginia

Virginia Nonprofits Registration statement NP-1 Application Instructions

The registration statement can be done for anyone requesting a sales and use tax exemption for a nonprofit organization or a nonprofit church. You are required to create a user ID and password for registering your organization.

Go to Nonprofit Online, to apply or search for a nonprofit organization,

Unable to Apply Online?

Organizations that are unable to apply online can download Form NP-1 Application (Virginia Department of Taxation Form NP-1 Sales and Use Tax Exemption Application for Nonprofit Organizations) or contact the Nonprofit Exemption Team at 804.371.4023 to request an application.

Mailing Address

Completed applications should be sent to:

Virginia Tax,
Nonprofit Exemption Unit,
P. O. Box 27125, Richmond,
Virginia 23261-7125, or
Faxed to 804.786.2645.

Charitable organization registration reinstatement

If the registration to transact business or its existence lapsed in Virginia, you can file a reinstatement request online using the Business Entity PIN. The reinstatement must be filed within 5 years from the date when existence was terminated, canceled, revoked, or withdrawn.

For reinstating online, click here

2. Annual Report Form 500 and Filings

Charitable Organization Annual Report Form 500 Instructions

Corporations that are exempt from income tax under IRC § 501(c) and not organized for pecuniary profit, are taxed only on their ‘Unrelated business taxable income’ and they must report them on
Form 500; Other than this, no returns are required.

The returns can be filed through the Federal/State e-file program. Also, certain Virginia corporations may qualify to file a Form 500EZ using eForms on the department’s website.

Filing Fee: $25

DueDate: 15th day of the 6th month for nonprofit corporations

Extension of Time to File Form 500

6 months for nonprofit corporations and entities other than C corporations

Penalties and Interest for Form 500

If Form 500 is filed within the automatic extension period, and if 90% or more of the tax is not paid by the original due date, an extension penalty will apply.

The extension penalty is imposed at the rate of 2% per month or fraction thereof from the original due date through the date of full payment or the extended return due date, whichever occurs first. The penalty is applied to a maximum of 14% (12% for nonprofit corporations and entities other than
C corporations).

Reporting Agency: Virginia State Corporation Commission

Filing method: Online

3. Virginia State Filing Requirements

Virginia requires a copy of the federal Form 990 or Form 990-EZ (or the successor form to such form) that was filed with the IRS (for the relevant year) for the Nonprofit Hospitals.

Nonprofit hospitals (References are to the Code of Virginia unless otherwise noted) are NOT required to file Form 500; therefore, a paper copy of the federal Form 990 or Form 990‑EZ must be mailed directly to the Department of Virginia.

A paper copy of the form must be provided to the Department within 30 days following the filing of the federal Form 990 or Form 990‑EZ tax form with the Internal Revenue Service.

E-File Form 990-N (e-Postcard), 990-EZ, 990, 990-PF, 1120-POL, 8868
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