Virginia Revises Tax Payment Schedule for Certain Dealers and Direct Pay Permit Holders

Effective May 31, 2010, sales and use taxes collected by dealers and direct pay permit holders with annual sales of or in excess of $12 million must be filed and remitted monthly by the 20th day of each (current) month. Beginning in June 2010, all eligible taxpayers must file a return showing the gross sales, gross proceeds, or cost price arising from all taxable transactions for the first fifteen days of the current month and for the last fifteen days of the prior month. All applicable taxes arising from these transactions must be remitted at the time of transmittance. Failure to make a full and timely payment will subject the taxpayer to a penalty of 6% of the amount of the tax underpayment, as well as all applicable interest.

Total taxable sales or purchases are to be computed without regard to the number of certificates of registration held by the taxpayer. However, these provisions do not apply to taxpayers who are only required to file the Consumer’s Use Tax Return, Form ST-7.

Any sales and use tax exemptions arising from purchases of production, distribution, and other internet-access equipment made by internet service providers must be handled as refund requests made to the Tax Commissioner. (Ch. 781 (H.B. 1600), Laws 2009, effective April 8, 2009, applicable as noted)

Posted on August 5, 2009