Fuels Tax - Licensing

Who Must be Licensed

The following chart lists the fuel activities of persons that must be licensed and the type of license the person must obtain.

License TypeFuel Activity
Aviation Consumer

A person who:

  • uses in excess of 100,000 gallons of aviation jet fuel in a fiscal year, and
  • holds a Virginia fuels tax license.
BlenderA person who produces blended fuels outside the terminal transfer system.
Importer

A person, other than a supplier, who imports motor fuel by any means of transfer outside the terminal transfer system. Bonded Importer classification applies if the fuel is imported from a state in which:

  • the seller is not required to collect motor fuel tax either at that state's tax rate or the tax rate of the destination state; or
  • the supplier of the fuel is not an elective supplier; or
  • the supplier of the fuel is not a permissive supplier.  
     
Bulk User of Alternative Fuels

A person who:

  • maintains an alternative fuel storage facility, and
  • uses all or part of the fuel to operate highway vehicles.  
     
Elective SupplierA person who is required to be licensed but who may elect to collect the tax on fuels that are removed at a terminal located in another state and has Virginia as its destination state.
ExporterAny person who obtains motor fuel in Virginia for sale or other distribution in another state, territory, or foreign country.  
Note: Motor fuel delivered out of state by or for the seller is an export by the seller. Motor fuel delivered out of state by or for the purchaser is an export by the purchaser.
Fuel Alcohol Provider

A person who:

  • produces fuel alcohol, or
  • imports fuel alcohol outside the terminal transfer system.
Motor Fuels TransporterA person who transports motor fuel for-hire by means of a pipeline, tank wagon, transport truck, railroad tank car, or marine vessel.
Provider of Alternative Fuels

A person who:

  • acquires alternative fuel for sale or delivery to a bulk user or retailer of alternative fuel; or
  • maintains storage facilities for alternative fuel which will be sold, all or in part, to someone other than a bulk user or retailer of alternative fuel to operate highway vehicles; or
  • sells alternative fuel and uses part of the fuel to operate highway vehicles by means of a fuels supply line from the cargo tank of a vehicle to the engine of the vehicle; or
  • imports alternative fuel into Virginia, by means other than the fuel supply tank of highway vehicles, for resale or use in his own highway vehicles.
Refiner (Supplier)A person who owns, operates, or otherwise controls a refinery.
Retailer of Alternative Fuels

A person who:

  • maintains alternative fuel storage facilities, and
  • sells or dispenses the fuel at retail to be used to generate power to operate a highway vehicle.
Supplier

A person who:

  • is a position holder, or
  • receives motor fuels through a two-party exchange.  
    Note: Includes a licensed elective supplier and a licensed permissive supplier
Terminal OperatorA person who owns, operates, or otherwise controls a terminal.

Who May Elect to be Licensed?

The following chart lists the fuel activities of persons who may elect, but are not required, to be licensed and the type of license the person may obtain.

License TypeFuel Activity
DistributorA person who acquires motor fuels from a supplier or another distributor for subsequent resale.
Permissive SupplierAn out-of-state supplier who elects, but is not required, to have a supplier's license.

Licensing Benefits

License holders, whether or not required to remit taxes, may receive advantages such as discounts and deferred tax payments.

Virginia Licensing Categories

In Virginia, fuels licenses are divided into two categories: 1.) motor fuels and 2.) alternative fuels. The type of fuel that a person handles determines the category of license the person will be issued.

Obtaining a License

To apply for a Virginia Fuels Tax License, you must have an account in the VAETS system. You can apply for a new account by submitting a New Account Request. The licensing application may be completed within the VAETS system once you have established an account. You may also need to have your bonding company submit a bond.