Penalties still in effect in Virginia even after the elimination of Accelerated Sales Tax

While the Accelerated Sales Tax was eliminated as of June 30, 2021, by amendments to the 2021 Appropriation Act, the Virginia Department of Taxation advised that “penalties and interest for all prior years’ Accelerated Sales Tax payments remain due and are collectible during a summary issued during a July 2022 Session of the General Assembly.

The accelerated payments were eliminated, but any past due payments for prior periods under assessment remain due and were not absolved by the change. Accelerated payments of 90% of sales tax were due for dealers with taxable sales and purchases of $1M for the 12-month period of July 1-June 30.

It is essential to ensure that sales tax reporting systems are updated to reflect the change in Virginia to no longer require accelerated payments.

(2022 Legislative Summary, Virginia Department of Taxation, July 11, 2022)

Posted on August 29, 2022