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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.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.”