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Virginia Tax Commissioner Forgives Green Fees Tax


In a recent ruling of the Virginia Tax Commissioner, a taxpayer was forgiven of a portion of a tax assessment made during an audit. The business is a museum and gift shop that handles accommodation packages. These packages include meals, attractions and golf.

The taxpayer appropriately charged tax on all items except the green fees. According to the ruling the Taxpayer states that “…since it began its business, it has applied the tax on all facets of its package sales with the exception of green fees. The Taxpayer states that its internal documentation reflects this fact.” Since being made aware of the taxability of the green fees, the Taxpayer has been applying sales tax to the green fees portion of the charges.

The Taxpayer asked for the tax and interest assessed during the audit as well as penalties to be waived based on the fact that prior audits had not made the Taxpayer aware that the packaged green fees were subject to tax."

The Tax Commissioner stated, “I will allow for the waiver of the tax and interest on the green fees for the audit period at issue. I note that the Taxpayer is currently charging the tax on the green fees portion of the packages that are being sold. The Taxpayer must separately state the tax on its customer invoices to be in compliance with Va. Code §58.1-625 and Title 23 VAC 10-210-340.

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”