Stay up to date with sales tax: Join our mailing list!

Virginia Enacts Sales Tax Provisions for Accelerated Payments and Dealer Discounts


Admin/Rates/Audits/Use Tax

Virginia Governor Terry McAuliffe signed the biennial budget bill which contains retail sales and use tax provisions regarding accelerated sales tax payments and dealer discounts. Any dealer or direct payment permit holder with taxable sales and purchases of $1 million or more for a 12-month period beginning July 1 and ending June 30 of the immediately preceding calendar year is required to make a payment equal to 90% of the sales and use tax liability for the previous June. The payment must be made on or before June 30th if payment is made by electronic funds transfer (EFT). Payment must be made on or before June 25th if payment is made by means other than EFT. Beginning with the tax payment that would be remitted on or before June 25, 2018 (if payments are made by other than EFT) or by June 30, 2018 (if payments are made by EFT), the accelerated sales tax payment provisions will apply only to those dealers or permit holders with taxable sales and purchases of $25 million or greater for the 12-month period beginning July 1 and ending June 30 of the immediately preceding calendar year. 

 

Beginning with the return for June 2010 that is due July 2010, dealer discounts will not be available to any dealer required to remit retail sales and use tax by EFT. The compensation available to all other dealers will be limited to the following percentages of the first 3% of the sales and use tax levied:

 

  • 1.6% for monthly taxable sales of $0 to $62,500
  • 1.2% for monthly taxable sales of $62,501 to $208,000
  • 0.8% for monthly taxable sales of $208,001 and greater

 

Also beginning with the June 2010 return that is due July 2010, the bill suspends provisions that allow compensation to retailers liable for the tire recycling fee, the communications sales and use tax, the tobacco products tax, and the tax for enhanced E-911 service. Beginning with the return for June 2011, due July 2011, the compensation allowed for the tobacco products tax under Va. Code §58.1-1021.03 is reinstated. (Ch. 780 (H.B. 30), Laws 2016, effective July 1, 2016, except as noted)

(11/16/2016)
(New)
Scroll to Top