Virginia Accelerated Sales and Use Tax Payments Due
- Jun 1, 2012 | Susan McLain
Last year, Virginia Governor Robert F. McDonnell proposed and passed a new threshold level for dealers required to make accelerated sales tax payments as part of a process to phase out the accelerated payment program. This year, the new threshold is $26 million.
The state of Virginia says they “…will mail payment vouchers to affected dealers [and]…provide a reconciliation worksheet with instructions to help…determine the tax due….”
The ruling requires “…Retail Sales and Use Tax dealers who generated taxable sales and purchases of $26 million or more for the twelve-month period ending June 30, 2011 to make an accelerated payment. The payment must be made on or before June 25, 2012 for dealers paying by check, or July 2, 2012 for dealers making electronic payments. Affected dealers will be entitled to take a credit for this amount on the return for June due July 20, 2012.”
The amount due is 90% of the tax liability less any dealer’s discount. If a dealer has more than one location and no single location generated sales of $26 million or more, but all together, they did, then accelerated payments must be made for each dealer.
The state of Virginia has indicated they will send appropriate paperwork to each dealer that qualifies, however, if you feel you might qualify but did not receive a payment voucher, then contact the Virginia Department of Taxation at 804-367-8037. To read more details, click here.
If accelerated payment is due, but not paid on time, a penalty of 6 percent of tax due will be assessed.
The accelerated payment only applies to June.