Virginia Beach Business License: $25, $40 and $50 Flat Fees to $200,000, Rates and Two-Year Cap
If you are opening a business inside Virginia Beach city limits, you need a city license issued by the Commissioner of the Revenue. Virginia has no general statewide business license, and the State Corporation Commission (SCC) forms your entity but issues no license to operate. The city license is the Business, Professional and Occupational License (BPOL) tax. For most small businesses, the Virginia Beach business license is a flat fee of $25, $40 or $50 based on gross receipts. This page covers who issues it, how the fee ladder works, how to apply, the March 1 deadline, and the other city taxes and rules that catch new owners.
Who issues the Virginia Beach business license
The Commissioner of the Revenue, through its Business License division, issues the license at City Hall, 2401 Courthouse Drive, Virginia Beach, VA 23456. Contact the office at:
- Phone: 757-385-4515
- Email: Business@vbgov.com
- Hours: Monday to Friday, 8 to 5
- Commissioner's administration line: 757-385-4251
Every new application needs Zoning Division approval before you apply. Call the Zoning Division at 757-385-8074 to confirm that your address and use are permitted. The city's online portal, VBePay (pay.vbepay.com), handles new license applications, renewals, meals, lodging and admissions returns, and the annual business property return.
A city license does not replace state licenses. Regulated trades and professions are licensed by state boards such as DPOR, the Department of Health Professions, VDACS and ABC, so check whether your business needs one.
The flat-fee ladder (verify)
Virginia Beach does not charge the $50 minimum that older guides describe. It uses a flat-fee ladder based on expected gross receipts. Virginia law lets a city with more than 50,000 people waive its license requirement up to $200,000 in gross receipts, and Virginia Beach uses that band. All classes pay the same flat fee in these bands (verify):
| Gross receipts | Flat fee |
|---|---|
| Up to $25,000 | $25 |
| $25,001 to $100,000 | $40 |
| $100,001 to $200,000 | $50 |
Above $200,000, the category rate applies. Rates are per $100 of gross receipts (verify):
| Category | Rate |
|---|---|
| Contracting | 0.16 per $100 of gross receipts |
| Retail | 0.20 per $100 of gross receipts |
| Professional, financial and real estate | 0.58 per $100 of gross receipts |
| Personal, business and other services | 0.36 per $100 of gross receipts |
| Wholesale | 0.12 per $100 of gross purchases (not receipts) |
The contracting, retail, professional and services rates equal the state maximums. The wholesale rate is higher than the general state limit of 5 cents per $100 of purchases, which allows higher rates only for localities that already had them in 1964, so confirm the wholesale figure with the Commissioner (verify). If your category is not listed, call the Commissioner's office at 757-385-4515 before you apply. Ask the office to confirm how the rate is computed on your projected receipts.
The new-business cap for the first two years (verify)
A business new to the city that expects gross receipts over $200,000 pays no more than $50 for each of its first two license years. You must request this treatment through your application (verify). If you are looking for economic development incentives beyond this cap, ask the city's economic development office directly. Do not assume a rebate or multi-year incentive applies to your business without written confirmation.
How to apply for a Virginia Beach business license
Follow these steps in order:
- File your assumed name with the SCC, if you use one. An assumed name (DBA) is filed with the State Corporation Commission, Clerk's Office, for $10 at scc.virginia.gov/businesses. The Commissioner's office does not handle assumed names. You will need proof of this filing for your application.
- Get Zoning Division approval. Call 757-385-8074 before you sign a lease or apply.
- Submit your application and complete the interview. A revenue agent interviews each applicant and sets the business classification, which determines the rate that applies.
- Pay the flat fee or category rate. Payment and renewal are handled through VBePay.
Bring these items to the application and interview:
- Photo ID
- Social Security number or Federal Employer Identification Number (FEIN)
- Your business start date
- Business location address
- An estimate of gross receipts through December 31
- Proof of your assumed-name filing with the SCC
Home-based businesses must also provide proof of residency and complete a Restrictions for Home Use form. Ask Zoning what your home use requires before you apply, because the city's rules for home occupations are set by Zoning, not in this guide.
The Commissioner's office reviews licensed businesses about every four years. Keep your receipts and records organized so a review does not become a problem.
Virginia Beach business license renewal and the March 1 deadline
Renewal notices and business property returns are mailed the first week of January. Payment is due March 1. After March 1, penalty and interest may apply, and until the license is paid, the business is considered not licensed. Confirm the penalty amount with the Commissioner's office, because it is not stated here. Renew early on VBePay so that a mailing delay does not put you past the deadline.
Other city taxes to plan for
- Business personal property: $4.00 per $100 of assessed value. Equipment is assessed at 40% of original cost. Computers are assessed at 40% in years 1 to 3, 30% in year 4 and 15% from year 5. The return is due March 1, and the tax is due June 5.
- Meals: 6%
- Lodging: 9% plus $2 per night, or 10.5% in the Sandbridge special service district
- Admissions: 10% (participatory sports 5%)
- Cigarettes: 75 cents per 20-pack
- Daily rental of equipment: 1% (heavy equipment 1.5%)
- Sales tax: 6.0%, made up of 4.3% state, 1.0% local option and 0.7% regional (verify)
Your state income and corporate tax obligations are separate from these city taxes. Virginia Tax (tax.virginia.gov) administers the state taxes.
Local rules that differ from state practice
- Community event umbrella license: Under City Code 18-108, the umbrella license costs $10 per vendor, with a minimum of $50 and a maximum of $500 per event.
- Peddler permits: The application is $25, plus other fees, processed through Planning. Mobile peddlers must move every 15 minutes on streets posted at 25 mph or less. Peddling is not allowed in the Resort Area.
- Near NAS Oceana: Parts of the area are in Accident Potential Zone 1 (APZ-1). Check with Zoning before you lease property near Naval Air Station Oceana.
Short-term rental permits
In BPOL law, "short-term rental" means renting equipment, not lodging. If you plan to rent out a home or room for stays, the rules are different. A whole-dwelling rental of fewer than 30 consecutive nights needs a $500 annual zoning permit for each address, $1,000,000 in liability insurance and city registration. Renting a room while the owner is present (home sharing) requires registration but no zoning permit. Properties in the Oceanfront Resort overlay need a conditional use permit. For a full comparison of local requirements, see our Virginia short-term rental rules by locality guide.
Your Virginia Beach business license checklist
- File your assumed name with the SCC for $10, if you use one.
- Get Zoning Division approval (757-385-8074).
- Complete the application and revenue agent interview with photo ID, SSN or FEIN, start date, location, receipts estimate and SCC proof.
- Pay the flat fee of $25, $40 or $50, or the category rate above $200,000 (verify).
- Renew by March 1 each year through VBePay.
This page is informational content, not legal or tax advice. Fees, rates and deadlines change, and figures marked (verify) must be confirmed on the Commissioner of the Revenue's current pages or with the office at 757-385-4515. For complex situations, consult a qualified attorney or certified public accountant (CPA).