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Virginia Law Clarifies Definition of Gross Proceeds for Sales Tax


 New Virginia law clarifies definitions.

A new Virginia law clarifies the definition of “gross proceeds” with respect to sales and use tax.

Chapter 252 takes effect on July 1, 2015. It reads, in pertinent part:

“’Gross proceeds’ does not include finance charges, carrying charges, service charges, or interest from credit extended on the lease or rental of tangible personal property under conditional lease or rental contracts or other conditional contracts providing for the deferred payments of the lease or rental price.”

Therefore, the finance charges, carrying charges, service charges, and interest from credit (as defined above) are not subject to sales tax.

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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.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.